Acala Network — revolutionary stablecoin?

Since the inception of digital currency, there has been a lot of backings for the system as regards decentralization, open source system, secured transactions, and transparent platforms. Irrespective of the backdrops, stablecoin has gained popularity because of its benefits, stablecoin has widely been employed to curtail the rate of political and economic crisis, and a lot of traders have adopted it for trading purposes. There is however centralized stablecoin and decentralized stablecoin, in the aspect of decentralized stablecoin (a process of making use of an over the collateral system to secure the stablecoin), there are limitations associated with single network assets due to the assets and the underlying ledger that are available on the platform that are staged as collaterals, this has brought about a reduction in users adopting it or making use of it.

Just as the internet is to intranet so is the cross-chain communication of high significance to the blockchain.

Acala Network is a stablecoin platform that is operated by a decentralized system and is used to power open finance applications that are based on cross-blockchain. It is powered by Polkadot. Polka-dot is responsible for powering a network of private, public, and consortium blockchains and it also gives the leverage of real interoperability, transactional and economical scalability. Acala is the number one decentralized finance consortium that delivers a set of protocols, for example, the use of a stablecoin protocol to operate as Polkadot’s DeFi building block.

Benefits of Acala Networrk

The Acala cross-blockchain stablecoin network has the following benefits :

• It implements a sound, borderless transfer of values and a stable currency that operates at low cost to all the blockchains that are connected in the network.
• It has the highest security ever since it inception because of it leverage on the Polkadot shared security mechanisms.
• Collaterals can enter from both Polkadot network and every other network that is connected together to get a high supply ceiling
• Actual censorship resistance and decentralization can be achieved via the token release model together with the consortium setup.
• Acala Network is a special kind of stablecoin network that can have a customized fee program and still retain its high security.
• Acala Network would also be future proof and would be forkless with an upgrade that cannot be disrupted and an on-chain governance
• Acala Network will also be a building block that will give room for various open finance services.

Presently, 1 Acala dollar stablecoin (aUSD) is equivalent to one dollar (1USD). Acala Network dollar stablecoin is actually a digital currency that is supported by multi-collateral. The network is decentralized which means that is can be formed by making use of assets from various blockchains that are connected to the Polkadot network which includes Ethereum and Bitcoin as the collaterals. This also makes it possible for any blockchain or digital jurisdiction on the Polkadot network together with several applications that are in those chains. For any person that has the type of cryptocurrency assets that is supported by the Acala Network, it is easy for them to make use of them in the generation of aUSD tokens by simply creating a Collateralized Debt Position (CDP) via the Honzon protocols. The aUSD tokens can also be gotten by purchase from brokers.

Features of Acala Network

• Stable Currency

It is a decentralized cryptocurrency that is backed up by multiple asset and is not volatile. They are designed to be stable and the aUSD makes it possible for a low-cost value and a borderless global transfer across all the blockchains that are connected together.

• Staking Liquidity

It releases the staked assets (DOTs) as fungible and releases the liquid assets (L-DOTs), it also brings out the value of staked assets to promote DeFi and does not give up the security of the entire network in the process

• Polkadot Empowered

Acala Network is powered by Polkadot and that enhances the security because of the Polkadot shared security mechanism which gives rise to forkless upgradability and high resilience.

• Owner influenced

It is a decentralized network that is entirely in control of the holders of the Acala Network Token (ACA) in order to achieve a future that is transparent and is based on less trust and on more truth.

Acala Applications

Acala Network is an all in one DeFi service center that makes it possible for users to borrow aUSD and have control of their outstanding loans. It also helps it users to make interest on the aUSD, make token trades based on a decentralized exchange and also have a say in the governance of the Acala Network token.

Acala also leans on the following system and network models to manage its operations and security.

• Acala Network relies on collators in Polkadot shared security model for the provision of the new state of transactions straight to the validators of the relay chain in Polkadot.
• There is also a need for an actual type of market price for the stablecoin, the Acala Network token, and the collateral assets that are offered by oracle operators and requires by the Honzon protocol. This triggers the liquidations or rearranges some of the risk parameters.
• Acala Network relies on liquidators also to keep an eye on the levels of the collateral, surplus, and debt auctions. Acala has a liquidator that is automatic for the utilization of off-chain workers, unlike the Ethereum that requires some actors go be external forces triggering the liquidation. The responsiveness and the autonomy of the system will be improved further.

Acala Network is the first ever kind of DeFi infrastructure blockchain network that is operated by a decentralized consortium and it powers financial activities for different blockchains on the Polkadot network. It will specifically bring about a solution to the issue of liquidity and stability. It will bring about stability of instruments of finances through the Honzon protocol and power a lot of financial activities without affecting the entire security of the network via liquidity and for the extraction of all derivative values of the DOT.

Main Website: https://acala.network/

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