Polkadex Integrates aUSD as The Default Stablecoin for its Polkadot Parachain

Published in

Acala

4 min readMay 19, 2022

Acala is excited to announce Polkadex will integrate aUSD as its default stablecoin, and in return aUSD will get more liquidity from Polkadex Orderbook.

Polkadex is a fully decentralized peer-to-peer orderbook-based cryptocurrency exchange for the DeFi ecosystem built on Substrate. aUSD will help Polkadex establish itself as a trading engine for Web3 and DeFi by making aUSD the default stablecoin for the Polkadex ecosystem.

Meet Polkadex

Many users prefer a decentralized exchange because they do not have to give up assets to a 3rd party. Unfortunately, decentralized exchanges such as Ethereum-based Uniswap also suffer from high gas fees and limited functionality. For this reason, many users prefer a centralized exchange, thus foregoing the security of their assets and hindering user onboarding in DEX platforms.

Polkadex addresses the user onboarding issue resulting from the complex nature of DEX platforms; despite their many benefits, blockchain platforms are yet to provide convenience and a satisfactory UX. Polkadex delivers a centralized-like (albeit non-custodial) experience with features like:

High-frequency trading
Limit orders
Trading bot integration for experienced traders and institutional investors
Support for cross-chain assets
Increased liquidity through an order book and AMM
Zero front running

Aside from Polkadex Orderbook, the Polkadex vision is made possible thanks to the Substrate framework, and Thea, Polkadex’s innovative decentralized interoperability layer which allows tokens from other blockchains to be traded on Polkadex.

Polkadex also features PolkaIDO, a fully on-chain IDO platform with cross-chain token support, and Polkapool, an AMM pool where users can trade gasless and cross-chain without worrying about KYC. Polkapool creates other liquidity-increasing opportunities, ensuring Polkadex users receive efficient trading services.

Other additional features users should expect on Polkadex in the future include:

Futures trading
Derivative markets such as NFTs
New token generation with support for cross-chain transfers to other parachains and networks connected by Thea.

Tying up the Polkadex experience is a unified, intuitive interface that forms the foundation of Polkadex’s service. The solutions and UX attract and keep users in Polkadex.

aUSD will provide a stablecoin for Polkadex users

aUSD, an over-collateralized multi-asset stablecoin, creates a route for interoperability between various Polkdadex chains. Polkadot’s parachain-to-parachain messaging enables users to exchange aUSD between Polkadot parachains, increasing aUSD utilization and prominence in the Polkadot ecosystem with any bridge risk or reliance on trust.

Polkadex’s aUSD integration expands aUSD use by exposing its users to aUSD utility across different chains. Institutional investors and traders with custom algorithms can leverage Polkadex’s support for aUSD and its trading bot feature. With no gas, trading bots can access Polkadex through their Layer-2 solution.

Additionally, Polkadex users receive access to trading options in Ethereum, Kusama, and other supported protocols following the Polkadex integration. The move increases liquidity by expanding Polkadex’s market reach through aUSD, creating deeper liquidity pools with increased user benefits.

In the future PDEX will be eligible to become collateral for minting aUSD, ensuring PDEX owners will receive more token utility from the new use case and create new opportunities for utilizing their PDEX beyond the Polkadex ecosystem.

aUSD’s significance as the default Polkadot stablecoin continues to grow

aUSD serves as the default routing asset, and means of exchange in the Polkadot and Karura ecosystems. Polkadex’s integration supports aUSD’s target by expanding its user base and continuing to enable a flourishing ecosystem among the Polkadot and Kusama parachains.

$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 Polkadex

Polkadex is a fully decentralized peer-to-peer orderbook-based cryptocurrency exchange for the DeFi ecosystem built on Substrate and designed to become the ultimate trading engine for Web3.

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.