Stablecoin, Yield and Custody News for Week of August 14th, 2022.
Biggest story of the past week is another significant stablecoin depegging event. On Sunday, a popular polkadot-based stablecoin made by DeFi platform Acala called aUSD saw its price drop a staggering 99% in a matter of hours. This is of course another stablecoin facing a currency depegging event, with several other highly notable examples happening this year such as the Terra UST collapse. This exploit and fallout are still very much ongoing, but the cause of the depegging event appears to be an issue with an update to on of the Acala liquidity pools, which caused a hacker to be able to print nearly 1.2b aUSD, flooding the market and dropping the price. This hacker appears to still be holding onto the coins, which the Acala team has requested the assistance of white hat hackers in recovering. Interestingly, it appears that this hacker was not the only one to exploit the liquidity pool bug to their benefit, with several others taking advantage of the issue. This event is still ongoing, and we will certainly be posting more updates as the fallout continues.
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