Now, the Polkadot ecosystem keeps progressing with the DeFi Acala Community platform turning into the first to get a parachain slot on the Rococó test purple.
Acala, the self-explanatory decentralized financial center that works for Polkadot, announced that it had secured the job on March 26. Acala launched in January 2020, along with the DeFi, to create an open cross-chain finance infrastructure for the Polkadot ecosystem.
In February, Acala also launched an Ethereum Digital Machine (EVM) based on Polkadot’s Substrate Scope, making interoperability way easier with Ethereum-based assets.
The official parachain extension impulses the platform one step higher to reach its goal of providing cross-chain interoperability in the quickly expanding Polkadot environment.
Polkadot’s multi-chain “parachain” ecosystem will work with fragmented sidechains to process transactions in parallel. Parachutes’ acquisition will happen in an auction process in which projects try to outbid each other through the slot.
Polkadot also released Rococo as a parachain testnet in August 2020 to test its inter-shard communication protocols as the projects move forward and are face deployment on Polkadot’s purple sister Kusama and Polkadot’s mainnet.
Acala maintains its plans to release a dollar-pegged stablecoin which will help any Polkadot-based program. A new Polkadot DAO Alliance’s announcement came to life on March 26 to promote the growth of decentralized governance in the Polkadot ecosystem.
The Alliance was a target of Origin members, including the main projects of Polkadot SubDAO, Plasm, Phala, Stafi, Bifrost, Darwina, Zenlink, and DeepDAO. The Alliance is still deferring establishing a growth fund for Polkadot-based startups, with the announcement stating:
“The Alliance will establish a multi-million dollar DAO Ecosystem Improvement Fund to provide financial support for DAO and World wide web three early-stage projects.”
Polkadot’s rapid growth has propelled its native DOT token up the cryptocurrency market capitalization charts in 2021, as it has hit 250% since the beginning of the year and is currently trading at $ 32.70
What is Acala?
Acala is a high-performance decentralized finance platform that serves as a Polkadot parachain. Members of two Polkadot ecosystem teams founded it.
Acala brings a butchery of decentralized financial services to Polkadot, including a decentralized exchange (DEX), staking liquidity (Liquid DOT (LDOT)), and even an algorithmic stablecoin, aUSD. Acala is both a parachain platform on which other teams can build and an application layer that plays the role of provider of a suite of applications offering every mentioned financial product.
Current DeFi applications face many problems concerning adoption from a mainstream audience, and much of these issues stem from the platform. Unlike Ethereum, which is always in need of gas fees to be part of ETH, Acala allows any blockchain platform to take part and pay for computation in any currency.
By: Jenson Nuñez