Acala, a stablecoin and liquidity blockchain, join forces with Terra.
Acala uses a multi-collateral-backing system to maintain his aUSD stablecoin peg.
What does this mean? It uses a money reserve from a basket of assets.
What assets? $DOT, $ACA and $LDOT, the $DOT liquid staking asset on Homa protocol.
$ACA is the native token from the Acala blockchain used for governance by adjusting the risk parameters for borrowers.
Acala is one of the parachains currently living in Polkadot after a $1.3M raised for their crowdloan a.k.a. the parachains' selection process.
So, whatβs the deal with Terra? More specifically, Anchor protocol announced the partnership with Acala looking to empower the stablecoin market of Terra and Polkadot.
How? By increasing liquidity and yield for aUSD and $UST by setting liquidity pools on Acala before expanding to other parachains and Layer-1s.
But also, adding LDOT and LKSM (Kusama liquid staking token) to Anchor Protocol collateral options against $UST lending.
But, what about bridges? Acala will integrate with Wormhole, the Solana native bridge for cross-chain assets between Polkadot and Terra.