Pendulum & Amplitude Partner with Acala to Integrate aUSD Stablecoin
Acala’s aUSD is set to become a major stablecoin on Pendulum when it obtains its Polkadot parachain slot. aUSD will be exchanged on Pendulum with other 15+ stablecoins, utilized as a stabilizing mechanism and act as a gateway to the Dotsama ecosystem for fintech companies.
Pendulum aims to become the missing link between fiat and DeFi. A base layer blockchain that fintech companies can develop financial services dApps on top of. To achieve this goal, Pendulum will integrate a wide range of stablecoins from across the crypto ecosystem. Acala is widely considered one of the most successful DotSama (Polkadot and Kusama) parachains and aUSD serves as the native stablecoin for the DotSama ecosystem. Pendulum will be looking for similar success in our upcoming Polkadot and Kusama crowdloans.
What is aUSD?
aUSD is a decentralized, over-collateralized stablecoin backed by cross-chain assets, serving as the native stablecoin and default routing asset for the Polkadot and Kusama ecosystems. aUSD maintains its peg relative to the US Dollar, allowing users to transact, trade, and facilitate services using aUSD while shielding users from price volatility customary to the crypto asset economy. Since aUSD is built with Substrate, the stablecoin can be trustlessly transferred to any parachain with no bridge risk.
aUSD use cases on Pendulum
Acala’s aUSD will be widely used in Pendulum’s fiat and forex focused ecosystem, as settlement currency and for other purposes. The upcoming forex-optimized AMM Amber for instance, will use a special aUSD backstop pool as a stabilizing mechanism. This allows low-risk single-sided liquidity provision into its swap pools for different fiat stablecoins.
The incentivized aUSD backstop pool takes over the risks from the swap pool liquidity providers, and additionally acts as a liquidity reserve to guarantee withdrawals even in case of drained swap pools.
These low-risk single-sided liquidity pools allow Amber to attract deep liquidity for the 15+ fiat stablecoins that will be initially available on Pendulum and thus enable forex trading at lowest costs. Cross-border payment services such as DTransfer (which like Pendulum is developed by SatoshiPay) can leverage the advantages in cost reduction, speed and 24/7 operability to increase their competitiveness.
Diagram of a Forex integrated Pendulum ecosystem
Join Acala and Pendulum
If you are a team interested in building a project that drives yield or utility of the aUSD stablecoin within the Polkadot and Kusama ecosystem, you can apply for funding from the $250M aUSD Ecosystem Fund.
Pendulum’s Amplitude parachain aims to launch on Kusama by summer and then 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.
Meanwhile, make sure to set up your Polkadot wallet and learn how Polkadot crowdloans and auctions work. Follow Pendulum socials to join us in swinging the pendulum from traditional banking to a fiat DeFi future.
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.
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.
Building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadot’s Substrate. Allowing traditional finance fiat services to integrate with DeFi applications such as specialized forex AMMs, lending protocols, or yield farming opportunities. Developed by SatoshiPay.
Keep your eyes on the Pendulum!