Acala and Anchor aim to unite DOT and Terra ecosystems in order to enhance the decentralized stablecoin space so let’s read more today in our latest cryptocurrency news today.
Anchor announced integration with Acala to enhance the decentralized stablecoin space of Polkadot and Terra ecosystems. Acala is the ETH-compatible DEFI protocol that announced partnering with Anchor to boost the decentralized stabelcoin space of the DOT and Terra ecosystems. Following Wormhole integration plans, both parties are set to bring an increased liquditiy and yield opportunities for UST and aUSD by serving as gateways into the decentralized finance ecosystems of Terra and DOT.
Acala and its Kusama-based parachain Karura will have the task of aiding the expansion of Ancho’s collateral options for the UST stablecoin with Liquid DOT and Acala’s Yield Bearing liquid staking derivatives. According to the press release, the entities will focus on working together to boost the liquditiy pools for aUSD and UST on Acala and this is expected to act as a gateway into the Polkadot ecosystem for the UST users. The DUO will work on forging even more integrations and deployments in the Terra and Acala ecosystem.
The users of Polkadot and Kusama networks will enable access to the Anchor yield with the help of LDOT and LKSM and the first step towards achieving this is by transferring the liquid staking assets to the Terra system via the cross-chain briding platform Wormhole. The users’ LDOT or LKSM can be provided as collateral to borrow the UST on the Anchor. The user will earn ARN Incentives for borrowing and depositing the UST on the Earn side and earn a yield. With the new use case for lDOT and LKSM, a new group of users from Dotsama will be introduced to the Terra ecosystem.
Acala and Anchor plan to create a UST/aUSD pool and enhance the liquidity for the aUSD and UST and initially the pools will develop on Acala before the expansion on multiple parachains. The focus will be to grow the stablecoins space together. Acala also announced the launch of a $250 million aUSD ecosystem fund last month with the main goal is to supporting new startups dedicated to creating new apps with the use cases for Acala’s stablecoin on the Kusama or Polkadot parachian. The focus is on the expansion of both ecosystems via the increased cross-chain activity and the aUSD growth. The fund was launched in collaboration with eight DOT parachain teams and plenty of supporting venture funds.
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