Following the recovery of the HUSD stablecoin’s dollar peg, crypto exchange Huobi reportedly shared explanation to the factors leading to the short-term liquidity issue, with assurance of it being fixed. 

Specifically, on August 18th, HUSD reportedly started its decline from its dollar value, trading at $0.92 at the beginning of the day and slumping down to as low as $0.82 a few hours later. This sent out alerts to community members, who had speculations of what mig happen if the stablecoin doesn’t recover its dollar peg.

As a response measure to the worries, the crypto exchange platform then issued an announcement that they had established contact with the stablecoin issuer, Stable Universal Limited, and were spending efforts to restore the stability. 

Prior to the da’s end, the Ethereum-powered stablecoin recovered almost all of its dollar peg, trading at $0.99 per HUSD, before going back to $1 on Friday.

Per the HUSD team, the depeg was created by an initiative to close market maker accounts in a few areas to stay compliant with regulations. The team explained that the time difference in banking hours had led to a gap that resulted in a liquidity issue, causing HUSD falling from its peg.

Huobi then provided assurance to its clients via an announcement that the problem had been entirely fixed, and called for its users to keep a close eye on and stay alert of any potential risks due to the market’s volatility.

Meanwhile, an exploit minting 1 billion Acala Dollar (aUSD) reportedly resulted in the stablecoin to depeg by 99%. As a response to the hack, the Acala team froze the hacker’s wallet, raising questions over the platform’s decentralization claims. The team was eventually able to recover a large portion of the tokens that were not collateralized.