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Acala EVM+ Launch Has Initiated as the Wormhole Multi-chain Bridge Goes Live on Karura

After months of development work, the Acala EVM+ has entered its first phase of launch and the first live contracts have gone live! With Wormhole’s multi-chain bridge now live, Karura users will be able to leverage the Wormhole bridge to launch the 3 stablecoin pool (3Pool) on Karura, enjoying instant liquidity and accessibility to aUSD, USDC, and USDT, creating a low-risk, capital-efficient stablecoin swapping mechanism.

As the EVM+ full launch progresses into the subsequent phases, DApp teams can deploy their EVM-based smart contracts on Karura while using the same tooling they utilize in other Ethereum environments. With Wormhole’s launch, any DApps building on Karura will be able to integrate Wormhole assets for their users and access several layer-1 blockchain networks already supported by Wormhole.

Ready to start building in the Acala EVM+ environment on Acala or Karura? Connect with our team, or use our EVM+ Getting Started docs.

Acala EVM+ Combines the Best of Ethereum and Substrate Interoperability

Just like Ethereum can do things Bitcoin will never be able to do, which subsequently inspired many new innovations, Substrate and Polkadot are categorically different from Ethereum in a way that will empower many new, chain-level innovations outside of the EVM sandbox. We are firm believers in the power of Substrate and built the Acala EVM+ to also optimize for Substrate’s full potential and longevity, rather than simply redeploying Ethereum on Polkadot and inheriting all the same problems Polkadot was built to solve.

The EVM+ provides a development environment analogous to Ethereum while facilitating Polkadot’s modular blockchain framework, Substrate’s full power, high throughput, and customizability. Developers will be able to innovate outside the confines of the EVM, meaning existing EVM compatible applications can still be developed. However, they can now leverage the functionality created at the Substrate layer on Karura’s EVM+.

EVM+ introduces practical features to enhance the user experience within blockchain. These include:

  • Payment of gas fees in any token
  • Support for customizable fee schedules like zero-fee transactions
  • Seamless support for ERC-20 and Substrate native tokens
  • Chain-level customization for DeFi features, including on-chain scheduling, on-chain Keepers, prioritized Oracle feeds, and upgradability to new features from new developer requirements
  • Support for both Metamask and Polkadot.js

The EVM+ launch on Karura creates interoperability between Karura and other supported chains by enabling seamless connectivity and asset transfer between protocols via the Wormhole bridge.

Wormhole Integration Allows Wider Connectivity between Karura, Acala, and Top Layer-1s

The Wormhole launch facilitates Karura EVM’s access to a broader Web3 and top layer 1 protocols, including Avalanche, Binance Smart Chain, Ethereum, Fantom, Oasis, Polygon, and Solana. Interoperability is blockchain’s future; it creates convenient transactions between different blockchain platforms and utilizes and accommodates a greater blockchain audience and vectors.

Wormhole enables asset transfer without blockchain specialization, and developers can tailor their DApps to meet user demands. Wormhole is a fully generic network that allows cross-chain messages to contain abstract data and enables developers to create applications on or utilizing Wormhole. The Karura EVM+ will benefit from Wormhole’s consensus abstraction, speed, and upgradeability mechanics.

Karura intends to employ aUSD as the bridge connecting foreign tokens from different blockchains, increasing the utility and yield for aUSD. The Wormhole connection will create multiple new opportunities for Acala and Karura ecosystems to grow and consolidate while significantly increasing aUSD minting capabilities.

Deep Liquidity with 3Pool Stablecoins

Coinciding with Karura’s EVM+ launch is the launch of 3Pool on Karura– a liquidity pool consisting of three stablecoins: aUSD, USDT, and USDC. 3pool is intended to create deep liquidity and a capital-efficient route for swapping the three tokens. Karura users can bridge USDT and USDC tokens via Wormhole for minimal fees, provide liquidity and earn LP fees from 3Pool, generating additional yield.

Taiga — a parachain agnostic synthetic asset protocol- will help launch 3Pool by facilitating low-risk, efficient trading through the uniform, closely pegged assets (aUSD, USDT, and USDC). Taiga’s Stable Swap — a high-efficiency exchange liquidity pool — will power the asset exchange.

Liquidity incentives will be awarded to the 3pool 50% in LKSM and 50% taiKSM. The projected APR range is 7.71% — 87.66% depending on the size of the pool

This reward structure will enable a balanced mix of yield tokens received by LPs. The LKSM and taiKSM incentives can then be used in collateral staking to further unlock yield. Additionally, this reward mechanism helps to maximize security to the Kusama Relay Chain. 50% of LKSM plus 35% of the underlying composition of taiKSM will be in the form of LKSM, totaling to 85% of the subsidy will be in the form of LKSM. This also reduced supply shock on KSM relative to directly distributing the full subsidy in LKSM.

How to Start Using Wormhole and the 3Pool

Here is an end-to-end guide for binding your MetaMask and Polkadot.js accounts, bridging tokens via Wormhole (if you want to use a stablecoin other than aUSD), and how to get started on Taiga’s 3Pool:

For additional information from Taiga protocol

Karura and Acala EVM+ Launch Phases

Karura and Acala EVM+ launch phases will each contain three phases. The complete launch phases will be:

Karura:

  1. Alpha: Wormhole multi-chain bridge launch and creation of 3 stablecoin pool, 3Pool.
  2. Beta: Closed set of DApps launch in the EVM+ on Karura
  3. Public: Open, permissionless EVM+ release on Karura

Acala:

  1. Alpha: Wormhole launch on Acala
  2. Beta: Closed set of DApps launch in the EVM+ on Acala
  3. Public: Open, permissionless EVM+ release on Acala

Build on EVM+

If you’re a team looking to build on EVM+ integrate the aUSD stablecoin, get funding from the $250 million aUSD Ecosystem Fund, or receive support from Acala Grants, please get in touch with our team to chat about how we can support you.

$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.

About Karura & Acala

Acala is a decentralized finance network powering the aUSD ecosystem. The core product, Acala USD, 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. Karura is Acala’s sister parachain to serve the Kusama ecosystem and shares the same codebase as Acala.

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Karura is the DeFi hub of Kusama. Karura is a scalable, Ethereum-compatible network optimized for DeFi applications.

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Dan Reecer

Dan Reecer

Chief Growth Officer @ Acala and Karura. Previously launched Polkadot and Kusama @ Web3 Foundation.

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