Acala And Anchor Join Forces To Expand The Decentralized Stablecoin Space Of The Terra And Polkadot Ecosystems

Acala, an Ethereum-compatible DeFi protocol, has announced a partnership with Anchor to expand the decentralized stablecoin space of the Terra and Polkadot ecosystems. Following Wormhole's integration plans, both parties are poised to increase liquidity and yield opportunities for aUSD and UST, acting as gateways to the Polkadot and Terra decentralized finance ecosystems.

Acala and its Kusama-powered Karura parachain will be tasked with helping Anchor expand UST stablecoin collateral options with Liquid DOT (LDOT) and Liquid KSM (LKSM). According to the press release, the organizations will focus on working together to "stand up" liquidity pools for aUSD and UST on Acala. This is expected to serve as a gateway to the Polkadot ecosystem for UST users. The duo will also work on building additional integrations and deployments across the Acala and Terra ecosystems.

In addition, users of the Polkadot and Kusama networks will have access to the Anchor yield with their LKSMs and LDOTs. The first step towards achieving this goal is to transfer their liquid staking assets to Terra through Wormhole. Users' LDOT or LKSM can then be provided as collateral to borrow UST on Anchor.

Image: Medium