The fund by acala will provide early grants to entrepreneurs in the Polkadot ecosystem working in fields such as Decentralized Finance (DeFi), payments, derivatives, and Decentralized Autonomous Organizations (DAOs) using the aUSD stablecoin, according to a news release from Acala.
Acala also announced that it would collaborate with other Polkadot parachains on the adoption of the aUSD stablecoin, including Centrifuge, Astar Network, HydraDX, Efinity, Manta, Moonbeam, Parallel, OriginTrail, and Zeitgeist.
The aUSD stablecoin is at the heart of Acala’s DeFi products. Polkadot collateral tokens such as DOT, ACA, KSM, and KAR can be used to create the stablecoin, which can then be staked for yield.
The Acala team realized that an ecosystem of connected blockchains needed a trustworthy and stable currency to support all of the ecosystem’s economic activity. Users can utilize the aUSD stablecoin to access liquidity from reserve assets like as the ACA, DOT, KSM, and KAR tokens. They can also tap into cross-chain assets like ETH, BTC, and parachain tokens for liquidity.
The reserve assets can be collateralized to create aUSD, allowing users to receive yield while preserving ownership of the reserve assets. On February 9th, 2022, the aUSD stablecoin was released.
The Acala team highlighted the fund’s goals while announcing the aUSD ecosystem fund, claiming that the fund will assist teams developing in the Kusama and Polkadot ecosystems.
The fund will also work to expand the Polkadot and Kusama ecosystems by assisting with cross-chain activity and the development of the aUSD stablecoin.
Any initiative or team selected into the aUSD ecosystem fund will be supported by the Acala team, as well as the fund’s partners and supporters. The team will have no trouble raising funding from industry-leading funds. The initiatives will also be supported by Acala’s engineering staff. Projects will also receive a USD as a kind of liquidity, enhancing the TVL considerably.
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