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Decentralized finance faces multiple barriers to mainstream adoption

While it may be one of the most popular sectors within the crypto market, decentralized finance still has barriers to overcome before reaching mass adoption.

Hackers are struggling to cart away with funds stolen on Acala Network

The Acala network has suffered a heavy attack from hackers. There are strong indications that the attack has claimed a whopping amount of aUSD tokens.  According to findings, the hackers feasted on a bug to drain aUSD from the pool. As revealed, the stolen funds amount to about 1 billion aUSD tokens. The bug aided::Listen

The Acala network has suffered a heavy attack from hackers. There are strong indications that the attack has claimed a whopping amount of aUSD tokens. 

According to findings, the hackers feasted on a bug to drain aUSD from the pool. As revealed, the stolen funds amount to about 1 billion aUSD tokens. The bug aided the attackers in minting a massive amount of aUSD. The Acala team has confirmed the hack with promises to commence an investigation to determine how the hackers carried out the attack. 

However, a series of engagements by Tweeps on Twitter indicates that the stolen funds are still on the chain. As indicated, the Acala team is working vigorously to prevent the hackers from wiring the loot to their wallets. Subsequently, blockchain security outfit, PeckSheild attested to the attack, but the firm hasn’t given more details about the attack. 

In its attempt to rescue the situation, the Acala team disclosed that it noticed a configuration glitch on the Honzon protocol. According to the team, this glitch affected the aUSD. Also, the team added that it would pass an urgent vote to pause operations on the network. According to the announcement, the Acala team promises to resume regular operations once the situation is calm.

Meanwhile, a Tweep raised awareness about the hacker’s wallet. The Twitter user disclosed that the alleged hacker’s wallet currently possesses about 1.267 billion aUSD. The user debunked these claims, later revealing that some mechanism had prevented the hacker from sending out the funds. Another user lamented how the attack manifested despite Acala being built on the Polkadot blockchain. It’s widely believed that the Polkadot blockchain is one of the most secure blockchain networks.

The attack is likely to impact the aUSD coin significantly. Twenty-four hours before the assault, the token plunged by 18.26%, according to data provided by CoinMarketCap. Currently, the token has lost its peg as it’s now at $0.9194; this indication strongly reflects a loss for holders. Likely, the stablecoin doesn’t retain its peg, just like what the industry experienced with UST.

However, if the hackers can initiate the attack fully by carting away the funds, the crypto space may face another crisis. Lately, questions about the reliability of stablecoins against the volatility of cryptos have emerged. The industry has witnessed algorithm stablecoin UST’s collapse within the year— a minimal crisis for USDT. 

The occurrences mentioned above have sparked debates and strict attention from regulators regarding stablecoins. This attention might take a new shape and incur strict regulatory stipulations for the industry. Lastly, the attack on the Acala Network further highlights how crypto firms and projects are now a subject of attack by hackers.

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Decentralized finance faces multiple barriers to mainstream adoption

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