Updates on the aUSD Incident — 22 August 2022
It has been 7 days since the aUSD error mint incident happened on the Acala network. Below is a summary of what has happened so far and what we can expect next.
We have traced the 3.022B aUSD error mints that were claimed by 16 identified addresses. Some of the 16 identified addresses exchanged some of these error mints they received to other tokens including DOT, and they transferred aUSD error mints and aUSD error mint-swapped tokens to other XCM-connected chains such as Polkadot, Moonbeam, Interlay, Astar, as well as CEXs.
Some of the 16 identified addresses swapped their error minted aUSD with other tokens, leading to a disruption in swap ratios of aUSD with other paired tokens in the pools on Acala Swap. Certain other users acquired aUSD error mints at a significantly low cost. These users then transferred the aUSD error mints to other XCM-connected chains and CEXs.
We have since issued public calls to encourage aUSD error mints and aUSD error mint-swapped tokens to be returned to Acala Protocol.
Subsequently the team has been heads down tracing aUSD error mints and aUSD error mint-swapped tokens. The findings were as follows:
- 1.28B aUSD error mints were found on the 16 identified addresses. (Trace Result #1: 08–15–2022).
- 1.68B aUSD error mints found in the form of iBTC/aUSD LP token remained in one of the 16 identified addresses (Trace Result #1: 08–15–2022).
- 134.73K DOT swapped from aUSD error mints found being transferred to Polkadot and a certain amount subsequently sent to CEX. A bounty was issued to those who will return the funds (Trace Result #3: 08–18–2022 & Bounty)
- 12.38M aUSD error mints found on top 35 accounts that acquired a significant amount of aUSD error mints, or are linked to the accounts that acquired a significant amount of aUSD error mints (Trace Result #4: 08–19–2022).
A number of community discussions, proposals and referenda have been raised regarding the error mints, and as a result 2.97B error mints have been burned (Referendum #21, Referendum #24, Referendum #25, Referendum #26 etc.)
In the coming days/week, the team will be focusing on:
- Providing trace details for the remaining aUSD error mints, so that the community can formulate proposals to resolve the aUSD error mints. This is the most time consuming and critical part to get right, so please bear with us as we continue to complete the trace.
- Providing details on the situation of the liquidity pools that were severely disrupted by the incident, so that the community can formulate proposals to resolve the imbalance before the network resumes normal operations.
- Working with partners and the community to arrive at a recovery plan for aUSD
Many of the services on Acala have been disrupted, therefore the team is doing its best to strike a balance between accuracy and speed. As more traces on aUSD error mints and aUSD error mints-swapped tokens are being completed, our community will have a clearer picture in formulating aUSD recovery proposals. The Acala community, and the wider Polkadot and Kusama #Dotsama community, has been a strong and positive force during these challenging times, and what doesn’t kill us makes us stronger, together. Thank you for your strong support.
We still have a bit to go before services on Acala can be fully resumed. We appreciate your patience and support. And as usual, we will continue to release updates and trace reports as we progress. We have full faith in Acala, and will continue to build Acala’s future together with our community.
Updates on the aUSD Incident — 22 August 2022 was originally published in Acala on Medium, where people are continuing the conversation by highlighting and responding to this story.
