By Nathan Ferguson
Powered by Polkadot, the DeFi-based network, Acala (ACA) will be introducing a massive $250Million “aUSD Ecosystem Fund, in partnership with top venture funds and several other parachains.
According to a very recently published official announcement, the Acala Network (ACA), that is built upon Polkadot revealed that they will be working together with some of the top-level venture funds to introduce a new $250Million “aUSD (Acala Dollar) Ecosystem Fund” that will help to power up several startups that are operating in Polkadot’s own DeFi-based ecosystem, who are working on the development of decentralized exchanges, money markets, payment protocols and all sorts of different products.
Working on Acala Dollar (aUSD)
As for the distribution, Acala specifically mentioned that the accumulated funds will be distributed among worthy projects and teams who are specially building regarding the Acala Dollar (aUSD), which is itself a cryptocurrency powered stablecoin that is present as the main support for decentralized finance on both Polkadot and on Kusama.
In accordance with the information shared, more than 30 other venture firms will be participating in the fund with popular examples such as, Hypersphere, Jump Crypto, processor of CoinDesk and several others.
Building the Polkadot Economy
Dan Reecer from Acala stated that this new partnership with all the venture funds is a collaboration among firms that would take part in the overall development of Polkadot. Reecer also said that this is an opportunity for every one of us to work together for the aUSD and participate in the establishment of foundational liquidity, assisting Polkadot’s economy to rise in the market.
About Polkadot and Acala
Polkadot, a network that is said to be a Layer-0 blockchain, is the key pillar that powers Layer-1 parachains such as Acala. As for Acala, it highlights itself as the center of DeFi in Polkadot, marking itself as one of the first ever parachains that started on the Polkadot main network.
Last month, Acala had introduced the Acala Dollar (aUSD) to be the stablecoin on both Polkadot and that its partner, Kusama. aUSD is basically designed to work on the concept of over collaterization in order to keep track of its peg. Distributed as a sort of loan, the aUSD maintains its collateral, helping itself to maintain a price of $1.