According to a Twitter post dated Dec. 7, the Helio stablecoin protocol, which issues the US dollar-pegged HAY stablecoin, said that the company had repurchased $3 million in bad debt in HAY thus far on the open market. The day before, the Ankr blockchain infrastructure platform fixed would allocate $15 million to buy back bad debt resulting from its recent holding and resulting excessive circulation of HAY.
A series of seemingly unrelated incidents occurred on December 2 when a hacker manipulated vulnerabilities in Ankr's smart contract code and compromised private keys after a technical update. As a result, the hacker minted 20 billion Ankr Reward Bearing Staked BNB (aBNBc) tokens, which were pegged to the BNB token (BNB), and dumped them when the price of aBNBc fell to less than $2 from around $300.
However, a trader took advantage of an alleged hard-coding of fixed prices between aBNBc and BNB in โโthe Helio protocol. The trader bought 183,885 aBNBc with just 10 BNB and used it as collateral to borrow 16 million HAY, which was then exchanged for 15.5 million Binance USD, earning a 5,209x profit of its original capital.
2/ First of all, the team has already started our parity recovery process to $ HAYand this process is expected to be completed on Tuesday, December 6 UTC +4.
We expect HAY to re-peg, or at the very least, be close to the $1 mark.
โ Helio Protocol ($HAY) (@Helio_Money) December 4, 2022
After the exploit, HAY lost its peg and fell as low as $0.20 per coin before recouping most of its losses and is now trading at $0.96 at press time. Immediately after the incident, the Helio team stated that they would buy back the excess from HAY and send it to a burned address. Originally, users could mint HAY by depositing BNB as collateral at a ratio of 152%. The protocol had a closed total value of around $90 million before the incident.
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