Acala, an Ethereum-compatible DeFi technology, has announced a partnership with Anchor to expand the Terra and Polkadot ecosystems’ decentralised stablecoin sector.
The two companies are on track to provide more liquidity and yield prospects for USD and UST by acting as gateways into Polkadot and Terra’s decentralised financial ecosystems.
Partnership Of Acala and Anchor Network
Primarily, with Liquid DOT (LDOT) and Acala’s yield-bearing liquid staking derivatives – Liquid KSM – Acala and its Kusama-based parachain – Karura will be entrusted with assisting the extension of Ancho’s collateral choices for the UST stablecoin (LKSM).
The entities will focus on working together to “build up” deep liquidity pools for the USD and UST on Acala, according to a source. For UST customers, this is planned to serve as a doorway into the Polkadot ecosystem. The team will also aim to create more Acala and Terra ecosystem connectors and deployments.
Additionally, with the aid of their LKSM and LDOT, members of the Polkadot and Kusama networks will be able to obtain Anchor yield. The initial stage is to move their liquid staking assets to Terra using Wormhole, a cross-chain bridging platform. Then, on Anchor, users’ LDOT or LKSM can be used as collateral to borrow UST.
Acala Ecosystem Fund ($250 million)
Last month, Acala announced the formation of a $250 million Ecosystem Fund. The main goal is to let new entrepreneurs develop apps that employ Acala’s stablecoin on any Polkadot or Kusama parachain.
The extension of both ecosystems via more cross-chain activity and USD growth is also a priority. The fund was founded in partnership with eight Polkadot parachain teams and a number of venture capital firms.
