Migration Proposal Activated for aSEED USDC Collateral to Be Transferred On-chain in Acala Network
Acala Network has announced that an on-chain proposal for the migration of collateral is now live, focusing on the transfer of USDC holdings to a staging account prior to the discontinuation of Wormhole's support. This action will temporarily halt redemptions to ensure token redeemability before secure transfers are completed. Users must wait until their USDC is safely stored in the staging account before the conversion process can proceed.
The move comes in response to Wormhole bridge's decision to cease support for several networks, including Acala and Karura. After support ends, outbound transfers of USDCt and JitoSOL will no longer be possible. However, users can still return assets originally bridged from Acala Network or Karura to their respective sources. Incoming transfers for asset returns will still be accepted following the cessation of support.
Acala plans to remove non-native tokens from its bridge frontend interface, rendering USDCt and JitoSOL unavailable as bridge options. Additionally, JitoSOL liquidity pools on Euphrates will switch to unstake-only mode, meaning users will no longer be able to deposit new assets into these pools. These measures aim to streamline operations during the winding down of existing bridges.
All users holding wormhole bridge wrapped tokens, such as ACA-USDCt, 3USD, and JitoSOL on Euphrates, are advised to migrate them back by June 18 to prevent accessibility issues. Remaining wrapped tokens after this date may become permanently inaccessible. Users are also encouraged to remove liquidity or unstake assets before the deadline to mitigate the risk of loss of access during the bridge wind-down process.
Meanwhile, the Acala Network team plans to convert the USDCt collateral of the ASEED token into another stablecoin. Details of the conversion process are still being finalized and may change. ASEED token holders are encouraged to redeem their positions as soon as possible. ASEED on Karura remains unaffected due to its unique collateral composition.
In the long term, Acala Network plans to expand cross-chain connectivity with two new bridges: Snowbridge connecting Ethereum to Polkadot, and Hyperlane enabling connectivity to networks like Arbitrum, Solana, Base, and BNB Chain. These integrations aim to open access to diverse assets and dapps, thereby strengthening the ecosystem through expanded token options and services.
Users are encouraged to remain informed about the transition process, particularly deadlines for the migration of ASEED token positions and the returning of wormhole bridged tokens. Timely action can help ensure control of assets and prevent unintended losses as protocols evolve. Keeping abreast of platform updates will guide users through necessary changes effectively.
- The Acala Network is advising users to migrate their wormhole bridge wrapped tokens, such as ACA-USDCt, 3USD, and JitoSOL on Euphrates, back by June 18 to prevent accessibility issues.
- Acala Network plans to convert the USDCt collateral of the ASEED token into another stablecoin, and details of the conversion process are still being finalized.
- Acala will remove non-native tokens from its bridge frontend interface, rendering USDCt and JitoSOL unavailable as bridge options.
- JitoSOL liquidity pools on Euphrates will switch to unstake-only mode, meaning users will no longer be able to deposit new assets into these pools.
- In the long term, Acala Network plans to expand cross-chain connectivity with two new bridges: Snowbridge connecting Ethereum to Polkadot, and Hyperlane enabling connectivity to networks like Arbitrum, Solana, Base, and BNB Chain, aiming to open access to diverse assets and dapps.
