What is aUSD Token?
The Stablecoin of the Polkadot Ecosystem

aUSD is a multi-collateralized stablecoin, as the most commonly known stablecoin of this type: DAI. This means that various cryptocurrencies and tokens can be deposited into a smart contract to issue the stablecoin. The currencies that can be used as collateral to issue aUSD are the ACA, LDOT, DOT and LcDOT tokens.

Everything you need to know about aUSD stablecoin

The goal of aUSD, they mentioned through a statement on the Acala blog, is to be the most useful form of decentralized stablecoin in the Polkadot ecosystem, serving as a default pair, routing asset, and medium of exchange between all users and developers. They also highlighted that achieving these objectives, which are diverse, will lead to a flourishing ecosystem among the Polkadot parachains, as well as a strong value creation for the Acala chain, since the collateral is locked in the Decentralized Monetary Reserve.

“The Acala stablecoin protocol serves as a Decentralized Monetary Reserve that mints a stablecoin from a basket of reserve assets. This allows people to transact, trade and facilitate services using USD without price volatility and, if they wish, while retaining ownership of their reserve assets such as ACA, DOT, DOT derivatives, parachain assets and bridged assets of other consensus networks like BTC, or ETH”

What makes Acala (aUSD) unique and how it works?

Unlike other popular stablecoins pegged to the value of a US Dollar like USDC or USDT, aUSD is completely decentralized due to the creation of the aUSD stablecoin from blockchain assets connected to the Polkadot Network.

Thanks to the Honzon Protocol, a dynamic ecosystem of CDPs, users can mint aUSD tokens by creating a Collateralized Debt Position (CDP). In this article written by Dan Reecer (CGO of Acala and Karura) you can dive into this information.

Who created Acala & aUSD token?

The founders of Acala Network and creators of the aUSD token are Betty Chen, 0xThreeBody, Ruitao Su, and Bryan Chen.

Acala Network Links

Polkadot news, guides, and community content at Artickusama.com

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