After suffering a violent drop of 99% in its value yesterday, $AUSD, Acala’s multi-collateralized stablecoin seems on the way to a return to normal. The asset is now close to parity with the dollar again.
Back to stability for the AUSD
We were talking about it in detail yesterday: following a flaw in its protocol, the Acala project saw its multi-collateralized stablecoin $AUSD suddenly printed en masse. In a few moments it is thus the bewildering quantity of nearly $1.3 billion in AUSD which have been issued, i.e. more than 13 times the total assets assumed to support the stability of its value.
The consequences were immediate with the loss of 99.9% of the value of the AUSD and a consequent unscrewing of the $ACA token.
The Acala team, however, was efficient and diligent in quickly freezing protocol activities. In doing so, it largely limited damage by preventing the vast majority of newly created $AUSD tokens from leaving the platform. In addition, a governance vote organized during the day validated the return to the Honzon protocol and the destruction of these freshly minted tokens.
The effects of this decision were not long in coming. The $AUSD token quickly approached parity again with the dollar, after a meteoric reassembled by more than 10,000%.
More fear than harm in the end for the Acala project and the holders of the $AUSD stablecoin. The opportunity, however, to remember how much, from the $UST of LUNA to the $NIRV of Nirvana Finance, 2022 is a annus horribilis for these financial assets. Assets that are supposed to bring … stability to a turbulent crypto market.
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