The $250 million aUSD Ecosystem Fund will support startups that are developing applications with use cases for Acala’s stablecoin.
Acala collaborates with eight Polkadot parachain teams. Thus, they support a number of venture funds to establish a $250 million USD Ecosystem Fund. Moreover, they will use it to fund upcoming startups. They will focus on developing stablecoin applications on any Polkadot or Kusama parachain.
$250M ‘aUSD Ecosystem Fund’
The participants in the funds are looking for applications. It will be from Solidity or Substrate that generate yield or utility for Acala’s stablecoin, aUSD. Other use cases include money markets, DEXs, derivatives, asset management, DAOs, and payments.
According to a press release with CryptoPotato, the fund intends to support and facilitate investment. It will be in early-stage teams constructing in the Polkadot and Kusama ecosystem. Hence, the aUSD stablecoin at the center of everything.
In addition, it seeks to expand the two ecosystems. This is through a high cross-chain activity and the expansion of aUSD.
The Acala team will acquire capital from top-tier funds in the industry. Furthermore, this will only happen upon acceptance into the aUSD Ecosystem Fund.
The platforms can utilize Acala’s engineering team or both Solidity and Substrate-based projects. Nevertheless, they will inject aUSD liquidity to increase their TVL. Through the fund’s network, projects will be able to expand their ecosystem and grow their own brand.
Polkadot’s Native Stablecoin – aUSD
In February of this year, Acala announces the launch of aUSD. A Dex, as well as multi-collateral stablecoin. Hence, aUSD’s primary objective is to serve as a stablecoin for the Polkadot and Kusama ecosystems.
The need to power transactions, provide a medium of exchange, and serve as the default routing asset for Polkadot’s economy-of-economies prompted the conception of the decentralized stablecoin.
The stablecoin protocol uses a multi-collateral backing system to create a token that is loosely pegged to the US dollar. It mints a stable currency from a basket of reserve assets, allowing users to transact, trade, and facilitate services with aUSD without having to worry about price volatility.
Acala is a first-of-its-kind decentralized finance consortium with the mission to build cross-chain, open finance infrastructure for the Polkadot ecosystem.
Its mission is to serve as the decentralized financial hub of Polkadot, making it quick and simple to use or develop financial applications, thereby enhancing trading efficiency and saving valuable time. This means that Acala is comparable to Ethereum, except that it was designed specifically for the DeFi use case, making it significantly more effective at providing DeFi services.
The platform’s suite of core protocols makes it a desirable destination for any developer or user of a DeFi dApp. I will discuss three major ones below. Acala identifies itself as a high-performance Defi platform that they construct as a Polkadot parachain.
Members of two Polkadot ecosystem teams are the founders of Acala. Laminar and Polkawallet provide Polkadot with a variety of Defi services. This includes DEX, staking liquidity, and even an algorithmic stablecoin, aUSD.
Acala is both a platform on which other teams can build and an application layer offering a suite of applications for the aforementioned financial products.
Given its distinctive design and positioning, Acala is one of the most promising crypto projects. With the intention of introducing DeFi to the billions of uninitiated individuals, Acala is destined to accomplish great things for DeFi in general.