KuCoin Discovers Inaccuracies in USD Recovery Proposal After Acala Exploit
Three weeks after the Acala 'a liquidity pool exploit, KuCoin claims to have identified inaccuracies in the proposal for a USD recovery.
This is a serious issue that needs to be addressed immediately. The fact that hackers were able to exploit a bug in Acala's yield-bearing liquidity pool and mint 1.2 billion aUSD without collateral is a major concern. steps need to be taken to prevent this from happening again. first and foremost, the bug needs to be fixed. Secondly, greater security measures need to be put in place to protect against future attacks. This is a serious issue that could have major implications for the cryptocurrency industry.
This week, the protocol launched a report detailing the exploit along with a proposal to recover billions of dollars worth of aUSD. However, KuCoin has alleged that much of the important information related to the CEX in the report and the proposal is inaccurate. As such, it remains to be seen how the situation will develop, but it is clear that the protocol and KuCoin are at odds over the best way to proceed.
Flawed Numbers: Why We Can't Trust Statistics
According to KuCoin's latest statement, the total number of aUSD error mints sent to the exchange is 8.03 million, rather than 4.937 million, as detailed in the community proposal. It further noted that the total number of aUSD error mints trading on the exchange was incorrectly mentioned as 1 million instead of 5.33 million. This error has caused quite a stir in the community, and KuCoin has taken steps to rectify the situation. They have stated that they will compensate users who were affected by the error, and have taken measures to prevent similar errors from happening in the future. KuCoin's latest announcement shows that they are committed to providing a safe and reliable platform for users to trade on.
This is a terrible idea that will cause a lot of damage to the Acala community. The price of the token will plummet and people will lose a lot of money. This is a really bad idea and I wouldn't be surprised if it leads to the downfall of the Acala platform.
The team at Acala should definitely reconsider the proposal put forth by the community. It is clear that there is a lot of support for the idea, and it could potentially lead to some great things for the company.
“Given the significant difference in the amount of aUSD error mints deemed necessary to re-collateralize, it is suggested that the Acala community reconsider the current proposal together with the Acala Foundation. In the interests of protecting users, KuCoin is willing to continue to provide support to the Acala community and the Acala Foundation. And with our joint efforts, we hope the incident can be resolved soon while ensuring that no innocent user suffers any loss.”
Decentralization Debate: Is Acala the Answer?
The exploit of Acala Network's aUSD stablecoin caused great damage to the network, with the value of the coin dropping by over 99%. In response, the team quickly froze the erroneously minted tokens by placing the network in maintenance mode. This prevented further damage to users and the network. However, the move also paused other features, including swaps, xcm (cross-chain communications on Polkadot), and the oracle pallet price feeds.
There is no question that Acala is a decentralized platform. It is clear that the platform is designed to be decentralized and to promote the decentralization of the financial system. However, some decentralization proponents have questioned how decentralized Acala really is if it can promptly freeze funds. It is important to remember that decentralized platforms are designed to be resilient and to operate without central points of control. Acala is still a young platform and it is possible that the team will make changes to the platform in the future to address these concerns.
We are happy to report that KuCoin has identified inaccurate information in Acala's community proposal. We have corrected the information and will continue to monitor the situation closely. We believe that this is a positive step forward for the community and look forward to seeing more progress in the future.
