Following the official announcement of Acala and Wormhole, the Acala and Anchor protocols will also work together to become a bridge between the Polkadot and Terra ecology, and jointly increase the liquidity and income opportunities of aUSD and UST.
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Terra UST — Bringing Decentralized Assets to the Internet
UST is a decentralized algorithmic stable asset built on Terra. The UST income in the Anchor protocol is stable and is mainly supported by the income of various PoS assets provided by users as collateral. The source of stable assets and low volatility income provided by Anchor on Terra is mainly through lending to borrowers who use PoS assets as collateral and users who enjoy UST liquidity services.
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aUSD — a decentralized stable asset native to Polkadot and Kusama
aUSD takes advantage of overcollateralization of encrypted assets to maintain stability. The aUSD protocol mints stable assets through a basket of reserve assets. Therefore, users can use aUSD without price fluctuations, and without losing the ownership of their mortgage assets, such as ACA, DOT, KAR, KSM, LDOT, LKSM, other parachain assets and assets through the bridge network (BTC or ETH). All reserve assets can be used as collateral to mint aUSD, as long as the indicators pass the Gauntlet's standards and successfully pass the governance vote.
aUSD is the original stable asset of Polkadot and Kusama ecology, which means that aUSD can circulate in parachains and Dapps in a safe, free and decentralized manner, becoming the default trading basic asset and routing asset in Polkadot ecology. aUSD will give UST users access to the Polkadot ecology to leverage their UST or aUST for more profit opportunities.
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New collateral on Anchor: LDOT and LKSM
Anchor will soon integrate LDOT and LKSM into the agreement and serve as new mortgage assets.
While enjoying the staking income of staking DOT (~14%) and staking KSM (~20%), Acala and Karura users will be able to use their LDOT and LKSM to obtain additional income of Anchor through cross-chain staking. Because the UST generated by subsequent mortgages can be deposited into Anchor to earn the current APY (~19%) of the platform to further increase the rate of return. For example, users can exchange KSM for LKSM on the Karura network, first capture 20% of Staking income, and then transfer the circulating LKSM into Terra's Anchor protocol to lend UST, and then deposit UST to obtain additional income opportunities .
In general, the following two assets on Acala and Karura will become collateral in the Anchor protocol:
LDOT on Acala
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product timeline
The product roadmap will be executed in the following steps:
Proposal LKSM to be Anchor's collateral
Wormhole successfully deployed in Acala and Karura
Proposal LDOT to become Anchor's collateral
aUSD/UST stable pool on Acala (implemented through Tapio stable pool DEX protocol)
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$250M aUSD Ecosystem Fund
If you are a developer interested in building a project that can increase the revenue or utility of aUSD, you canApply for a USD 250 million aUSD ecological fund。
If you want to build on Acala, integrate aUSD or accept the support of Acala Grants, you canApply to get in touch with us。
