Acala Dollar (Acala)
About Acala Dollar (Acala)
Acala Dollar (ACALAUSD) is a decentralized stablecoin pegged to the US Dollar, designed for the Polkadot and Kusama ecosystems. It facilitates stable, secure transactions and DeFi activities by being minted through a collateralized process involving various assets. Developed by the Acala Network, ACALAUSD plays a critical role in the growth and innovation of the DeFi landscape within these ecosystems.
Acala Dollar (ACALAUSD) is a stablecoin pegged to the US Dollar, serving as the native stablecoin within the Polkadot and Kusama ecosystems. It is minted through over-collateralization using a Collateralized Debt Position (CDP) mechanism, allowing it to maintain its peg to the US Dollar. This process is decentralized, making aUSD resistant to censorship and ensuring its stability across different blockchain networks. The Acala Dollar supports a variety of reserve assets for minting, including DOT, LDOT (Liquid Staking DOT powered by Homa Protocol), ACA (Acala's native token), and potentially other cross-chain assets like Bitcoin (BTC) and Ethereum (ETH) subject to governance approval.
ACALAUSD is primarily used within the Polkadot and Kusama ecosystems for transactions that require a stable medium of exchange. It allows users to engage in DeFi activities, including earning, spending, trading, and accessing services without the price volatility associated with other digital assets. This stablecoin also facilitates remittances, on-and-off ramps, and can be utilized by projects as a quote asset for listings. Its design as a DeFi building block aims to foster ecosystem growth and product innovation.
**The official Acala Dollar ticker is “AUSD” and trades under that name on all the exchanges where it has been listed. The designation “ACALAUSD” is for CryptoCompare.com only.*