Wednesday, April 17, 2024
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Polkadot Parachains announces partnership with venture capital firms

Polkadot Parachain has decided to create a 250 million dollar aUSD Ecosystem Fund to support its native stablecoin, Acala USD. Members from nine Polkadot Parachains have teamed up with Venture Funds to help grow enterprises. The new Ecosystem Fund will help with the development of compelling use-cases for firms on the Kusama or Polkadot parachains.

Both enterprises’ teams are looking for Substrate or Solidity-based applications that provide usefulness or yield for aUSD. DEXs, money markets, DAOs, asset management, payments, and other use cases are included. Acala, the native Polkadot stablecoin, first appeared in New Zealand three years ago.

After experiencing scalability issues on the Ethereum network, its four co-founders (Bryan, Bette, Fuyao, and Ruitao) set out to create a DeFi-centric parachain inside the Polkadot ecosystem. They also considered other options for Acala, such as ETH2 and Cosmos.

They released aUSD on February 9, 2022, and have been working tirelessly to expand the stablecoin ever since. The most recent development is another tribute to their tireless work.

Polkadot’s position in the blockchain industry is seen as a long-term gamble, and any project on the network will benefit from its shared security paradigm. It enables parachains to use the Relay Chain’s plug-and-play security. Parachains can effectively contribute by providing liquidity, yield, utility, and pairings for a decentralised stablecoin unique to the Polkadot network.

This technique will be used by the nine parachain teams to promote and enhance aUSD as a building block for the ecosystem. It will enable hundreds of applications to thrive in the next few years, if not decades, as Web3 establishes itself in the global economy.

With the $250 million fund, aUSD will help enable investment for new applications in the Kusama and Polkadot ecosystems that have compelling aUSD use cases. Furthermore, the investment will be utilised to expand the Kusama and Polkadot ecosystems via increased cross-chain activity and the expansion of the aUSD.

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Jeewan Singh
Jeewan Singh
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.


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