Acala Stablecoin
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aUSD Overview
Overview
The Acala USD (aUSD) stablecoin protocol enables a decentralized, cross-chain stable currency that serves as the native stablecoin of the Polkadot and Kusama ecosystem. aUSD is minted from a variety of reserve assets. This allows holders of the reserve assets to earn, spend, trade, and access other services without price volatility while retaining ownership of their reserve assets.
Acala USD is pegged to the US Dollar. aUSD can be trustlessly integrated by any blockchain connected to Polkadot or Kusama, as well as applications deployed on those chains. aUSD can also be integrated cross-chain on any other connected blockchain network.
Anyone can mint aUSD using accepted reserve assets, and each aUSD is backed by a surplus value of reserve assets (collateral assets). The reserve assets are also cross-chain by nature, which can include Polkadot native assets (DOT and DOT derivatives), KSM and KSM derivatives like LKSM, Acala's native token ACA, and Karura's native token KAR. In the future, the protocol can also accept parachain assets and cross-chain assets like Bitcoin (BTC) and Ether (ETH) as collateral assets if they meet the risk requirements and are accepted via Acala governance.
The Acala ecosystem continues to expand with a network of decentralized protocols, applications and parachains. Developers, teams, or organizations looking to integrate the aUSD stablecoin can contact the Acala team here to schedule time to discuss the integration: https://acala.network/build-on-acala
Assets
- Acala USD (aUSD): the Acala stablecoin that is pegged to the US Dollar. Minting aUSD is trustless and done by over-collateralizing with a Collateralized Debt Position (CDP). aUSD is censorship resistant, decentralized, and cross-chain in nature and serves as the native stablecoin of Polkadot and Kusama.
- Reserve Assets: DOT, LDOT (Liquid Staking DOT powered by Homa Protocol) and ACA are default reserve assets. New cross-chain assets can be included as reserve assets upon assessment by Acala's on-chain Financial Committee and Risk Assessor like Gauntlet.
- Acala Token (ACA): the native token of Acala. ACA is a reserve asset that can be used to mint aUSD. It's also the governance token used to regulate stablecoin price by adjusting risk parameters such as interest rates. ACA is also the transaction fee token of the network and has a fixed supply of 1 billion ACA.
Networks
The aUSD stablecoin protocol is deployed on both Acala serving the Polkadot ecosystem and on Karura for serving the Kusama ecosystem.
Acala
Karura
Last modified 2mo ago