Acala and Anchor Protocol Integrating to Unify Polkadot & Terra DeFi Ecosystems

Acala has been on a roll with its consecutive integrations and partnerships. The DeFi network followed its Wormhole partnership with an announcement to join Anchor Protocol.

The collaboration will see the platforms acting as the gateways into the Terra and Polkadot ecosystems. This integration aims to bring yield and liquidity opportunities for UST and aUSD. 

As a borrowing and savings protocol on Terra, Anchor boosts the decentralized stablecoin sector using multiple integrations from Polkadot and Terra ecosystems. Karura (Acala’s Kusama-based parachain) and Acala will expand Anchor’s collateral alternatives for UST with LDOT (Liquid DOT) and LKSM (Liquid KSM).

In addition, the ventures will collaborate to construct deep liquidity pools for UST and aUSD on Acala. The integration will spread to developing and deploying more integrations in the Terra and Acala ecosystems.

Acala announced the integration of LKSM and LDOT in its official post. The network stated that users could enjoy up to 14% return on staked DOT and 20% on staked KSM. Moreover, they can use the liquid staking assets through cross-chain collateralization to provide excessive yield on the Anchor ecosystem.

The upcoming UST issuance will also be available for deposits into the Anchor ecosystem, offering 19% APY returns. For example, a customer can stake Kusama on Karuna to amass 20% returns and get the liquid LKSM token. These tokens can be deposited on Anchor to borrow additional UST, which can also be used for additional yields.

Here is a brief overview of the integrations’ roadmap:-

  • LKSM proposal on Anchor as collateral 
  • Wormhole goes live in the Acala ecosystem 
  • LDOT proposal on Anchor for collateral 
  • aUSD/UST pool goes live on the Acala network 
  • Additional integrations

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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