Pendulum and Amplitude Integrate With Acala To Bring aUSD to the Polkadot and Kusama-based Parachains

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Acala

4 min readJun 16, 2022

Acala is excited to be integrating aUSD into the Pendulum and Amplitude parachains. Pendulum will leverage aUSD to facilitate its cryptocurrency and fiat exchange services across different chains. Amber, Pendulum’s first DApp set to launch on its Polkadot parachain, will integrate aUSD.

Meet Pendulum

Pendulum is a Substrate-built blockchain platform connecting fiat rails to the decentralized finance environment. Pendulum addresses the demand for fiat liquidity in the DeFi ecosystems by linking fiat-pegged tokens from the blockchain networks into the dynamic DeFi ecosystems.Additional Pendulum platform features include:

Cross-chain trust-minimized bridges
A network optimized for a broad basket of fiat-pegged stable tokens
Opt-in compliance layer with privacy features
Seamless on/offramps standards for integrations into the local banking network

Connecting the DeFi ecosystem to various fiat currencies creates growth opportunities for DeFi products and traditional fiat infrastructures; Stellar, Ethereum, and Polkadot consumers will benefit from Pendulum’s services. Market opportunities include:

Yield earning opportunities — Fiat token owners receive access to lending pools and AMMs where they can put their funds to work
Linking foreign exchange markets to DeFi — With a daily transaction volume of $6.6 trillion, the foreign exchange market is the world’s largest financial market
Automated Money Makers — Cross-border money transfers will benefit from a fast, transparent, and cost-effective currency exchange procedure. Pendulum’s deployment of AMM smart contracts will help with the quick and efficient exchange of fiat tokens

Pendulum’s aUSD integration to power fiat transactions

aUSD bolsters Pendulum’s trading stability, facilitating trading opportunities with cryptocurrencies available on Pendulum. aUSD will also act as a safety net for Pendulum if the network experiences liquidity pool challenges (such as pool drainage). Pendulum can issue aUSD to users who may want to withdraw their contributions from the drained pools.

Integrating aUSD into Pendulum will attract liquidity providers to the ecosystem, creating deeper liquidity pools to support launching DApps such as Amber on the Pendulum Polkadot parachain. aUSD is the default native stablecoin on the Polkadot and Kusama networks and supports DeFi yield-bearing use cases across the DotSama ecosystem.

Platforms launching on Pendulum targeting the DotSama market can use aUSD as an entry point into the ecosystem. aUSD’s versatility in DotSama makes it ideal for transactions to any parachains in Polkadot or Kusama.

Pendulum aUSD integration provides a DApp-centric environment where developers receive access to the liquidity, traction, and vital value propositions of the Acala, Pendulum, and DotSama ecosystems.

📣 Pendulum’s Amplitude parachain aims to launch as a Kusama parachain by summer and then Pendulum aims to launch a Polkadot parachain by 2023. Crowdloan participants will have the chance to access Pendulum chain’s native tokens that power the Kusama and Polkadot ecosystems. Join the waitlist now to stay updated on the Amplitude crowdloan.

$250M aUSD Ecosystem Fund

If you are a developer interested in building a project that drives yield or utility of the aUSD stablecoin on Acala or any other parachain, apply for funding from the $250 aUSD Ecosystem Fund. The aUSD Ecosystem Fund is part of the broader Acala Ecosystem Program, offering liquidity for new projects, Acala Foundation Grants, engineering support, and other support to ensure the success of the aUSD ecosystem.

Build on Acala

If you’re a team looking to build on Karura or looking for support from Acala Grants, please get in touch with our team to chat about how we can support you.

About Pendulum

Pendulum is an open-source blockchain that attempts to create a fiat-optimized smart contract blockchain to bridge the gap between fiat and DeFi ecosystems. Pendulum is built on Substrate and will allow DeFi applications to connect to the foreign exchange market and build automated market makers (AMMs) to offer scalable liquidity pools for fiat currencies and provide yield earning opportunities for fiat token holders.

About Amber

The Amber AMM introduces a novel pool design that enables the oracle-guided Proactive Market Maker to abstract all risks away from the swap pools and confine them in a separated backstop pool. This design allows for risk-free single-sided liquidity provision, highest capital efficiency and lowest slippage and fees, making Amber an ideal building block for decentralized forex (DeFo) applications.

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About Acala

Acala is a decentralized finance network powering the aUSD ecosystem. The core product, Acala USD (aUSD), is a decentralized, multi-collateral, crypto-backed stablecoin serving as the native stablecoin of the Polkadot ecosystem. Acala’s Ethereum-compatible blockchain has built-in DeFi protocols for application developers to leverage, including a trustless staking derivative (liquid DOT — LDOT), a decentralized exchange, and the EVM+, a hybrid EVM offering fully Ethereum-compatible development environment plus full compatibility with Substrate.