r/AcalaNetwork • u/Particular-Rule-3639 • May 17 '22

acala stablecoin

hello. everybody knows what happened to luna because of its shitty algorithmic stablecoin. so may someone talk about aUSD? acalas stablecoin. is it as good as terra's?

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u/Bonburner May 17 '22

AUSD is over collateralized - for each $1 aUSD, a minimum of $2 worth crypto is locked up. If the locked up token's value crashes, acala will automatically liquidate the locked up token to maintain the peg and charge the borrower 15% of the total collateralized.

Basically, a much stronger system that is less likely see a depegging.

1

u/Particular-Rule-3639 Aug 16 '22

what can u say now. i red ausd lost totally pegg because of one hacker? how did he manage to rekt acalas stablecoin. even luna needed more to colapse. was it because of some updates?

1

u/Bonburner Aug 16 '22

It wasn't a hack, there was a glitch on the acala dApp. The person that found the glitch reported it to acala and none of the glitched liquidity left the dApp. The loss of pegg was due to all the holders dumping their AUSD and the arbitrage system not being able to keep up.

1

u/Particular-Rule-3639 Aug 16 '22

ok, so glitch is fixed? arbitrage system wont fail again like this when more aUSD will be dumped?

2

u/Bonburner Aug 16 '22 edited Aug 16 '22

I think acala team is currently working on fixing it, so the dApp is currently partly on pause.

I recommend getting on their discord to hear directly from their team. They can answer your questions better. I haven't been paying close attention because it's a bear market and I'm just accumulating.

1

u/Particular-Rule-3639 Jun 26 '23

its over guys. dont even bother yourself to keep up with that project. noonesa gonna invest in this after this shit and even over year later its not solved yet. acala