On May 30, Acala Network shared that the on-chain proposal for collateral migration is now live. It covers the migration of USDC holdings to a staging account ahead of the wormhole’s discontinuation of support. This process will also pause redemptions to safeguard token redeemability before completing transfers. Users must wait until USDC is secured in the staging account before conversion proceeds. The process responds to the scheduled end of wormhole bridge support for cross-chain assets. It aims to prevent complications from the wormhole bridge discontinuation.
Wormhole Ends Support for Acala Network and Karura
The wormhole bridge team will end support for several networks, including Acala and Karura. After support ends, outbound transfers of tokens like USDCet or JitoSOL will no longer work. Users can still return assets originally bridged from Acala Network or Karura to their sources. This change affects the ability to send these wrapped tokens off their native chains. Incoming transfers for asset returns will still be accepted after support ends. The deadline timeline highlights the importance of timely action before networks go offline.
Acala plans to remove non-native tokens from its bridge frontend interface. Assets like USDCet and JitoSOL will no longer appear as supported bridge options. The goal is to avoid confusion and potential issues for platform users. Additionally, JitoSOL liquidity pools on Euphrates will switch to unstake-only mode. Users will no longer be able to deposit new assets into these liquidity pools. These measures aim to streamline operations during the wind-down of existing bridges. Affected users should plan ahead to manage their token positions accordingly.
Users Must Migrate Wormhole Bridged Tokens by June 18
Users holding wormhole bridge wrapped tokens should migrate them back by June 18. This applies to assets such as ACA-USDCet, 3USD, and JitoSOL on Euphrates. Any remaining wrapped tokens after this date may become permanently inaccessible. Users are also advised to remove liquidity or unstake assets before the deadline. These steps help avoid loss of access during the bridge wind-down process. Timely action will prevent users from being unable to recover bridged tokens later. Delays could result in tokens being permanently locked without any recourse.
The team plans to convert the USDCet collateral of the ASEED token into another stablecoin. Details of this conversion process are still being finalized and may change. In the meantime, holders are encouraged to redeem ASEED positions as soon as possible. ASEED on Karura remains unaffected due to its different collateral composition. The Acala Network team confirmed plans to recover $94,000 USDCet from the ASEED Treasury. Recovered funds will replace the withdrawn USDCet in the ASEED collateral pool. These steps aim to stabilize the collateral backing for the ASEED holders.
Acala will Expand Cross-Chain Connectivity With Two New Bridges
Looking ahead, Acala Network plans to expand cross-chain links with two new bridges. Snowbridge will connect Ethereum to Polkadot for decentralized token transfers. This bridge will support assets like ETH, WBTC, and LINK across chains. Hyperlane will enable connectivity to networks such as Arbitrum, Solana, Base, and BNB Chain. This wider reach is designed to open access to varied assets and dapps. New integrations aim to strengthen the ecosystem through broader token options and services. Users should stay informed about integration timelines and technical details.
How Users Can Prepare for the Transition Process
This situation highlights the importance of user action ahead of upcoming deadlines. Users who hold ASEED token positions should plan redemptions before the deadlines expire. Similarly, those with wrapped assets need to return them before permanent lock-ups occur. Staying aware of these timelines will help users maintain control of their assets. A clear understanding of transition steps can prevent unwanted losses as protocols evolve. Remaining apprised of platform updates will guide users through these necessary changes.
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