DeFi On Polkadot Just Got A Massive Boost

DeFi on Polkadot is getting a massive boost thanks to a partnership with Acala and Astar Network.

Covered:

• Astar Partner With Acala
• DeFi On Polkadot

Astar Partner With Acala

Astar Network, which bills itself as Polkadot’s innovation hub, announced a partnership with fellow parachain Acala. Together they are launching the “Astar x Acala DeFi Rising” program which will provide brand new opportunities and rewards for developers on the Polkadot chain.

“With Acala, we have built a DeFi app-chain to provide products like aUSD to other networks in the Polkadot ecosystem and broader Web3 space,” said Bette Chen,  Acala co-founder. “Our deep integration with the Astar team is very exciting for us as we look to help accelerate the growth of Astar’s strong DApp ecosystem with aUSD liquidity and cross-chain use cases.”

Acala is an Ethereum compatible DeFi “ecosystem” that powers its own stablecoin aUSD. aUSD is the stablecoin of the Polkadot and Kusama ecosystems. Meanwhile, Astar Network is a multi-chain smart contract platform that supports the Ethereum Virtual Machine.

Acala’s suite of flexible financial products that serve the Polkadot network are pivotal to the booming ecosystem of dApps on Astar. The collaboration will enable developers to build on Astar’s vibrant DeFi ecosystem using Acala-native assets like aUSD, LDOT, and ACA, while receiving extra ACA and additional rewards from various Astar ecosystem teams.

DeFi On Polkadot

The DeFi Rising program is intended to be a big investment into making Polkadot’s DeFi ecosystem thrive. It’s a significant move thanks to Astar’s Cross-Consensus Messaging Format (XCM) executing cross-chain transfers that are trustless, decentralized, and interoperable way. 

With Ethereum 2.0 on its way, it’s important for scalable and interoperable ecosystems like Polkadot to distinguish themselves from the crowded pack that includes Avalanche and Fantom among others.

“This collaboration is the first official campaign conducted by major Polkadot parachains in the ecosystem. As it has been the case in the past, Acala and Astar will lead the Polkadot ecosystem and create multichain use cases together. This partnership is our first step to prove the value of trustless Polkadot bridges (XCM) and create the future of multichain dApps,” said Sota Watanabe, the CEO of Astar Network.