Composable Finance partners with Acala Network for aUSD integration
Composable Finance has officially partnered with Acala and will join the consortium of ecosystems that offer Acala USD (aUSD) as a stablecoin for decentralized finance (DeFi) developers and users. This is possible by opening a cross-chain messaging (XCM) channel from Picasso, Composable’s Kusama parachain, to Karura, Acala’s Kusama parachain.
Acala is an application-specific blockchain customized for powering stablecoin utility, economic activity, and liquidity. Through diversified cross-chain collateralization, their aUSD is designed to be resilient to periods of extreme volatility and maintain its peg. In addition to its resilience, aUSD is equally compatible with ETH wallets such as MetaMask, thereby serving as an access point to several EVM chains.
Through the Picasso < > Karura XCM channel, the Picasso ecosystem will gain access to aUSD. The intention is for our dApps to be able to leverage the liquidity, native cross-chain transferability, and stability of the aUSD stablecoin. Specifically, Composable’s cross-chain virtual machine (XCVM) permits the creation of natively cross-chain dApps through the CosmWasm smart contract framework. Therefore, developers can deploy their dApps once and start enjoying the benefits of cross-chain communication immediately from the communication infrastructure we provide. aUSD will be a key money lego in this framework.
Opportunity for Terra developers looking to build with XCVM
Many promising projects built on Terra need a new ecosystem to call home. Terra developers built their dApps with the CosmWasm smart contract framework — the same framework being employed by the XCVM. Therefore, Terra developers can deploy an instance of their existing projects in a natively cross-chain manner on the XCVM. Owing to the Picasso < > Karura channel, Terra developers who once required TerraUSD to power their dApps can now use aUSD instead. These projects will also enjoy access to the liquidity, traction, and unique value propositions of the Composable and DotSama ecosystems.
Composable will host a Twitter Spaces discussion with the Acala team on the 31st of May at 13:00 ET, 19:00 CET to share more information about this partnership and its opportunities for developers.
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