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The Acala community has suggested burning tokens to aid the stablecoin's return to dollar parity following this weekend's attack. https://twitter.com/AcalaNetwork/status/1559360833087488001
Acala Might Carry Out a Coin Burn
To change the value of an aUSD back to $1, the DeFi hub of Polkadot might burn some coins. Community member Dotverse suggested voting on whether to burn some of the coins in the aUSD stablecoin in a proposal posted on August 15. By returning the incorrectly created 1.3 billion aUSD to the Honzon protocol, the referendum would "essentially burn" the money upon success. Similarly, it would burn the remaining 4.2 million aUSD from the iBTC/aUSD reward pool. The suggestion states that this move would "help fix the error issue, restore [the] aUSD peg, and resume Acala activities." The community has begun to support the coin burn. However, some people said they would like more information before making a choice. According to Bette7, a project participant, "additional trace[s] on more monies are underway" to support recovery choices. On August 14, an attacker exploited a vulnerability in the decentralized finance network to profit by 1.3 billion aUSD ($1.3 billion). The attacker exchanged those tokens for different cryptocurrencies, including the native ACA token of the project.
aUSD Stablecoin
The aUSD stablecoin from Acala has lost all of its value due to those circumstances. The Acala network has also been frozen as of late. With aUSD acting as the de facto stablecoin for Polkadot and connected blockchains, Acala is meant to act as a DeFi hub for Polkadot. Therefore, for the project to function again, its stablecoin must be revived. Acala is not the only stablecoin to suffer a severe depegging problem this year. Similarly, Terra suggested a coin burn as a remedy after its TerraUSD stablecoin experienced a sharp decline in value in May. But both of those approaches fell short, and ultimately the asset crumbled.