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 a firm believer and a long-term builder for the multi-chain future. We believe in reducing liquidity fragmentation and increasing composability and DeFi accessibility to everyone. This is a vision we share with the Compound Gateway.

Polkadot is a layer-0 protocol that merely provides shared PoS security and cross-chain communication for its connected parachains. Other chain-specific and application-specific logic, such as EVM and smart contracts, are implemented on parachains. Acala’s parachain plays the role of DeFi hub and a landing pad that aggregates assets and liquidity from a variety of blockchains.

We will integrate with Compound Chain and implement its cross-chain interface, Starport. The proposal was first published on the Compound forum and has since gathered great community feedback. This proposal 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.

We are confident this contribution will be beneficial to the Compound community, to Acala, and to the Polkadot ecosystem, creating a win-win-win situation with a more evolved and cheaper money market service, more collateral asset variety, and much wider user adoption across multiple blockchains.

This proposal has now received a grant of USD$35,000 from the Compound Grants Program as its first batch of funded initiatives. This proposal will partially be funded by this grant, and partially funded by Acala. The detailed implementation plan can be found here.

This is our first public proposal to the Compound community. We have been pleased to receive warm welcomes and helpful feedback from various members of the community. We look forward to making the proposal a reality, and continuing to share more development progress as we proceed.

About Acala

Acala is the all-in-one DeFi hub of Polkadot. Acala is an Ethereum-compatible platform for financial applications to use smart contracts or built-in protocols with out-of-the-box cross-chain capabilities and robust security. The platform also offers a suite of financial applications including: a trustless staking derivative (liquid DOT), a multi-collateralized stablecoin backed by cross-chain assets (aUSD), and an AMM DEX — all with micro gas fees that can be paid in any token.

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