Short About: Acala & Karura.
What is Acala?
Acala is a decentralized DeFi hub of Polkadot that offers a suite of financial services, such as stablecoins, staking derivatives and DEX.
Acala has received five Web3 Foundation grants. It also has backing from Coinbase Ventures, Pantera Capital, Polychain Capital, Hypersphere and other VCs.
What can end users do with Acala?
There is a wide range of services to make users’ cryptofinance life easier.
Through Acala you can get a self-service loan in aUSD (Acala’s stablecoin) with several types of collateral, you can swap tokens and earn through liquidity pools and farming, you can stake DOT and get LDOT as a stacking derivative instead. Moreover its wallet allows users to make cross-chain asset transfers and to store and transfer NFTs.
How to deposit and earn?
Acala Network uses Liquidity Pools where users can provide liquidity. Liquidity providers are rewarded with an exchange fee and an additional reward (from stability fee profit share), as liquidity here not only serves users for token swap, but also serves the Honzon stablecoin protocol for liquidation.
What about LDOTs?
When users’ DOTs are bonded directly for staking, Acala Network with it`s Homa protocol provides users with LDOTs.
LDOTs (liquid DOTs) help users to earn both from staking and Defi. Staking DOTs through the Homa protocol user gets LDOTs that are tradable and liquid cross all chains on the Polkadot network. They can be used for trading and underlying DOTs at any time, with option to redeem immediately or earlier transferrable unbounded DOTs.
With its stablecoin protocol Honzon and complex system of CDP, Acala Network offers a solution to get a self-service loan in truly decentralized manner, where collateral can be such assets as DOT, LDOT, RenBTC, XBTC.
Native token: ACA. ACA keeps this credit system stable (minting and burning when needed).
Users need ACA to pay network transaction fees, stability fees (interest rate of the aUSD loan), and penalty fees in case of liquidation.
Fixed amount of ACA (100,000,000) will be minted on genesis and distributed according to the token economic plan
Acala’s Parachain Lease Offering: TBD
Canary network: Karura.
Karura is a sister network of Acala. It acts just like Kusama which is a live experimental platform for Polkadot. All the new solutions are first implemented in Karura and after successful deployment and testing phases they are performed on Acala.
Karura offers a suite of financial applications including: a trustless staking derivative (liquid KSM), a multi-collateralized stablecoin backed by cross-chain assets (kUSD), and an AMM DEX — all with micro gas fees that can be paid in any token.
Karura is the first ever winner of Kusama parachain auction and the first commercial parachain of Kusama.
All the rewards from all the last Acala’s & Karura’s events can be tracked here.