Polkadot Parachain has decided to prepare a 250 million dollar aUSD Ecosystem Fund to boost its native stablecoin, Acala USD. Members from nine Polkadot parachains joined hands with Venture Funds to assist emerging startups. The latest Ecosystem Fund will help provide robust use-cases for the startups on Kusama or Polkadot parachains.
The teams from both ventures are aiming for Substrate or Solidity-based apps driving utility or yield for aUSD. It includes use cases, such as DEXs, money markets, DAOs, asset management, payments, and more. Acala, the native Polkadot stablecoin, emerged three years ago in New Zealand.
Its four co-founders (Bryan, Bette, Fuyao, and Ruitao) aimed to develop a DeFi-centric parachain within the Polkadot ecosystem after facing scaling concerns in the Ethereum network. They also assessed other alternatives, like ETH2 and Cosmos for Acala.
They launched aUSD on February 9th, 2022, and have constantly been working to grow the stablecoin ever since. The latest development is another testament to their valiant efforts.
Seeing Polkadot’s position in the blockchain market as a long-term bet, any project on the network is sure to enjoy its shared security model. It allows parachains to access plug-and-play security from the Relay Chain. The ideal way for parachains to collaborate is by developing liquidity, yield, utility, and pairs for a decentralized stablecoin native to the Polkadot network.
The nine parachain teams will be using this mechanism to promote and boost aUSD as a development block for the ecosystem. It will allow hundreds of apps to excel in the upcoming years and even decades as Web3 establishes its place in the global economy.
With the 250 million dollar fund, aUSD will assist and facilitate investment for emerging apps in the Kusama and Polkadot ecosystem that have strong use cases for aUSD. In addition, the fund will be used to grow the Kusama and Polkadot ecosystems using elevated cross-chain activity and aUSD’s growth.