Acala Ecosystem Update — April 2021

April was a month highlighted by a few key events that will help shape the direction of both Acala and Karura’s networks — most notably our grant from Compound Grants, our integration with Chainlink oracles, and our partnership with Gauntlet. We also completed our first Build Acala event, which was a community-oriented event to begin bootstrapping the Acala Treasury. Last, our team was out in the cryptosphere talking about Acala, Karura, Polkadot, Kusama, crowdloans, and more, so check out those videos below.

Acala Receives Compound Grant for Starport

Acala has received one of the first Compound Grants for our proposal to integrate with Compound Chain and implement its cross-chain interface, Starport.

One of the leading DeFi teams first built on Ethereum, Compound has recently launched the Compound Gateway testnet — an independent cross-chain money market blockchain built with Substrate.

Acala’s Starport project will enable us to bring Compound’s services and CASH token (Compound’s interest-bearing token) to Acala and Polkadot, and introduce DOT and Liquid DOT (LDOT) as new collateral assets to the Compound money market. Read more in the full blog post:

Medium: Acala Receives Compound Grant to Connect Compound Chain and Polkadot via Acala
Compound has recently launched the Compound Gateway testnet — a cross-chain money market built with Substrate. Acala is…

Build Acala Event

In April, Acala hosted the first Build Acala event to begin bootstrapping the Acala Treasury. Although participation in Build Acala was limited, we are very happy to have been able to involve so many of you. For those who were unable to participate, please note that any registrants with a verified status will have a chance to participate in future events, and additionally, any registrants with an incomplete status will have a chance to complete KYC and verification at a later date. Sign up for the Acala newsletter to be kept in the loop about future events. Read more about Build Acala here.

Acala & Karura Media

Dan Reecer discussed the crowdloan and parachain auction process for Kusama and Polkadot at the Blockdown conference:

Bette Chen on a Web 3.0 panel at theBlockdown conference:

Karura + Chainlink Integration

Karura has integrated Chainlink Price Feeds. Chainlink’s decentralized price oracles provide Karura smart contract developers with tamper-proof, hyper-reliable, and precise financial market data directly on-chain. Developers can use that data to quickly start building secure DeFi applications and products across numerous use cases like derivatives, lending, stablecoins, asset management, and more.

This integration was made possible by the recent launch of a Chainlink oracle pallet, which gives all projects within the Polkadot ecosystem, including parachains, substrate chains, and Kusama parachains like Karura, a standardized way to natively integrate Chainlink oracles. With Chainlink Price Feeds already pre-made, resistant to manipulation (e.g. to protect against flash loan attacks), and actively securing billions of dollars in value across DeFi, we believe Karura developers will greatly benefit from integrating them as their go-to price oracle solution. Read more in the full blog post:

Medium: Karura Integrates Chainlink Price Feeds for Acala’s Kusama-based DeFi Hub
Karura, the DeFi Hub of Kusama, has integrated Chainlink Price Feeds

Gauntlet Partners with Acala & Karura

Acala and Karura have entered into a strategic partnership with Gauntlet . Gearing up for Acala’s Kusama-based launch of Karura, Gauntlet will build a financial model for Karura with a focus on market risks like solvency and capital efficiency. This model will also be refined and extended for Acala on the Polkadot at launch.

Gauntlet is a simulation platform for on-chain risk management. Gauntlet has performed market risk assessments for Compound, MakerDAO, Liquity, Notional, Aave, and more. They are active participants in numerous communities and governance processes — including Uniswap and Compound where they are top delegates. Gauntlet’s risk scores can be found on DeFi Pulse where they provide Economic Safety Grades for lending protocols. Most recently, Gauntlet has partnered with Balancer to dynamically set pool trading fees to maximize the returns of liquidity providers. Read more in the full blog post:

Medium: Gauntlet to Provide Automated Financial Risk Management for Acala and Karura
Gauntlet will contribute to optimizing solvency and capital efficiency for DeFi on Polkadot and Kusama
medium.com

Karura Product Demos

In April, Ruitao Su and Dan Reecer held a webinar to demonstrate Karura’s three core products: the Karura DEX, kUSD stablecoin loans, and Liquid KSM (LKSM) staking. Check out the clips of the product demos below!

Stay liquid while staking KSM with LKSM:

Perform swaps with the Karura DEX:

Borrow kUSD on Karura:

Learn how Crowdloans and Parachain Auctions work

Kusama crowdloans and parachain auctions are rapidly approaching. Make sure you’re up to speed on how the process works, and stay tuned for more educational videos on the details of how to participate in the Karura crowdloan.

Have a great month of May! Until next time,

The Acala Team

About Acala

Acala is an all-in-one decentralized finance network offering a blockchain platform secured by Polkadot, as well as a suite of cross-chain financial applications that let users trade, issue self-serviced loans, become liquidity providers, access staking derivatives, and earn high-interest APY on their digital assets. The network is scalable, Ethereum-compatible, and optimized for DeFi.

Acala was founded in Oct 2019, and today has received five Web3 Foundation grants, has backing from Coinbase Ventures, Pantera Capital, Polychain Capital, Hypersphere and other top firms, and has a distributed team in New Zealand, China, Europe, Brazil, and the United States.

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About Karura

Karura is the all-in-one DeFi hub of Kusama. Founded by the Acala Foundation, Karura is a scalable, EVM-compatible network optimized for DeFi. The platform offers a suite of financial applications including: a trustless staking derivative (liquid KSM), a multi-collateralized stablecoin backed by cross-chain assets (kUSD), and an AMM DEX — all with micro gas fees that can be paid in any token.

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