The aUSD stablecoin is decentralized, non-custodial and permissionless. aUSD allows users to hedge against price volatility, increase exposure of assets from multiple blockchains, and use the minted/borrowed aUSD trustlessly on multiple blockchains.
Yield & Liquidity for Reserve Assets: while maintaining ownership of assets e.g. DOT, users can collateralize to borrow aUSD to hedge volatility, pay for goods and services, or access services without price exposure. For examples, users could provide liquidity to a stablecoin pool, use a stablecoin savings product, or purchase an NFT.
Increased Exposure of Your Assets: traders may leverage long (increase exposure) on a given reserve asset e.g. DOT by depositing the asset to the Acala vault as collateral, minting aUSD, using the aUSD to purchase more reserve assets and deploy them into the vault, and repeat the process to increase exposure. Note: please proceed with caution as this also magnifies the risk of loss as well as gains.
Use as Medium of Exchange: Users can use aUSD to pay for transaction fees on Acala and Karura networks, and projects can use it as a quote asset for listings. aUSD can also be used for payments and on-and-off ramps as it integrates with more partners.
aUSD is a DeFi building block in a multi-chain ecosystem set to empower network effects, growth, and new product innovations.