Acala Network has taken a huge step forward with the launch of its Acala Multichain Asset Router 1.0, a revolutionary and pioneering technology that will completely transform the multichain ecosystem. This new solution provides developers and users alike with an improved experience in the multichain realm by offering frictionless asset transfers between Wormhole-supported blockchains and Polkadot parachains. As Web3’s liquidity layer leader and Polkadot’s premier liquidity gateway, Acala Network has paved the way for one transaction to facilitate multiple asset transfers across different blockchains through their introduction of Acala Multichain Asset Router 1.0.
For Web3 finance, Acala has strategically set out on a mission to build a robust and self-sustaining liquidity layer. The platform’s goal is to provide infrastructures for hybrid finance (HyFi), which combines decentralized finance (DeFi) and traditional finance (CeFi) by incorporating both digital assets and physical assets. The Universal Asset Hub, which supports multichain liquid staking token (LST) protocols, including the eagerly awaited liquid DOT (LDOT), is at the center of this project. A decentralized automated market maker (AMM) exchange and a flexible Substrate-based app platform that is compatible with EVMs are also part of this ecosystem.
The idea for the Multichain Asset Router was inspired by the idea that a multichain environment is where blockchain technology will go in the future. As the market develops, it has become clear that, while encouraging innovation, the proliferation of standalone L0, L1, and L2 chains also leads to fragmented liquidity. This fragmentation hinders user engagement as well as the development process.
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This problem is effectively addressed by Acala’s Multichain Asset Router 1.0, which combines Wormhole’s interoperable message-passing protocol with Polkadot’s Cross-Consensus Message Format (XCM) to enable seamless connectivity. This invention revolutionizes the ease of access to liquidity by offering a quicker, more affordable way to incorporate liquidity into DApps and parachains.
As the Acala Multichain Asset Router continues to develop, it will offer support for generic message passing, which allows two-way communication between smart contracts and Substrate calls. This potential is useful for a variety of applications, including linking different chains and parachains in one transaction. The Router works without difficulty, meaning there is no longer any need for intricate bridging protocols or separate EVM systems on target parachains.
The power of Acala’s hybrid chain technology, the Acala EVM+, lies at the heart of this breakthrough. It combines Polkadot’s Substrate framework with Ethereum-compatible development to provide modularity, interoperability, and adaptability. This combination gives developers access to a sophisticated application-building environment while also exploiting the potential that a multichain system has to offer.
The Acala Multichain Asset Router offers a streamlined integration process for developers and parachains looking to improve their Total Value Locked (TVL). DApps and parachains can access Acala’s significant TVL with little to no additional infrastructure or coding requirements. Through the Wormhole protocol, Acala also boasts access to liquidity pools from various ecosystems, including Ethereum, Polygon, and Optimism. Horizontal Relay Messaging Protocol (HRMP) connections or deployment on Acala EVM+ can both be used to integrate with the Router.
Acala emphasizes the importance of security and dependability through extensive auditing. SR Labs consistently reviews Acala’s blockchain, with Slow Mist and Trail of Bits also carrying out evaluations. Additionally, Slow Mist has conducted a detailed audit on Acala’s Multichain Asset Router, which is currently functional on Karura Network – Acala’s sister chain.
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As Acala’s Multichain Asset Router 1.0 gains attention, developers and innovators are encouraged to check out its user interface, analyze the technical details of how it works, create personalized experiences with Acala’s relayer endpoints, and support the growth of the system by launching their own relayers and customizing fees through personal fee registry contracts. This new technology gives us a glimpse into a world where multichain is in control -bringing interconnectedness, accessibility, and improved liquidity possibilities.