Acala is a DeFi platform that supports cross-chain operability through its stable coin aUSD.
During the summer of 2020, the introduction of the COMP token sparked the decentralized finance (DeFi) race with millions of investors pitching into either benefit from yield farming or just being able to take a loan using cryptos.
After COMP, many tokens tried to mimic the success of COMP and jump off the DeFi bandwagon, many succeeded while many failed to catch up. With the majority of tokens operating upon their specialized blockchain, many shortcomings were apparent.
A new blockchain made by an up-and-coming firm could handle so many transactions per-minute until traffic starts to pile up, creating bottle-necks, delayed transactions, and increased transactional fees. This happened over and over again, and even ETH gas prices hit record levels.
As an integrated multichain protocol, like Polkadot, Acala can trade information with other blockchains in the DeFi ecosystem. This allows for Acala to implement bridges to the Bitcoin blockchain, enhances transactional speed and overall efficiency across many chains so that costs are also low.
Acala: The Founders
Acala’s integration into Polkadot was not coincidental, as there are still other multichain protocols out there, but Polkadot is the chain of choice. This is the culmination of years of experience, trust, security, and synergy between the Polkadot eco-system teams, Laminar, Polkawallet, and direct support from Polkadot’s founder.
The team consisted of three brilliant minds, Bryan Chen who had the opportunity to work closely with Dr. Gavin Wood, the founder of Polkadot, Fuyao Jiang the founder of Polkawallet, and Ruitao Su founder of Laminar. They met in Hangzhou, China in 2019, they soon began the development of Acala.
Acala was spearheaded after the project received a large grant by the Web3 Foundation, also run by Gavin Wood, giving the team the much needed monetary and technical support from Polkadot. The grant was…