It’s a system designed to designed to mitigate against the issue of illiquidity and network security of staking blockchains. What to learn abut Acala Network by video Homa protocol Acala consists of the Honzon protocol (protocol in charge of the creation and liquidation of a CDP)and the Homa protocol(the protocol in charge of the tokenizing stakes).

Th Acala project is alliance or consortium of defi platforms,it was founded by Lamina and Polkawallet.

There are 4 kinds of stablecoins: fiat backed coins(USDTUSDC etc),asset backed(assets like gold,silver etc),commodity backed coins and algorithmic backed coins(like DAI) Acala in a nutshell Stablecoins are basically cryptocurrencies whose value are not left to market conditions,their value are predefined by some parameters,hence we can say they are stable as the parameters that define them. so to mitigate against those kinds of problems,that is where stablecoins comes in and if you look at the whole bulk of cryptocurrency trading right now, you see stablecoins, and there are a whole lot of them. Why we need something like Acala?īitcoin,Ethereum and several other cryptocurrencies are very volatile,we have seen the rapid devaluation of crypto assets,this volatility has adverse effects on its adoption in the real world,you cannot really adopt bitcoin per say,bitcoin is good for cross border transfers, payments but when we are talking the issue of real world utility,if you are a merchant and you accept bitcoin payment and supposing there is Bob on the other side of the planet buys merchandise from you today and pays in bitcoin,you will not want to keep your money in bitcoin,you will want to convert it to something that is stable like the US Dollars, …. We will discuss the principal component of Acala. A decentralized stablecoin platform powering cross-blockchain open finance applicationsĭecentralized finance right now is the new frontier to which blockchain is been applied and currently there is over $1 billion dollars locked up in different defi platforms,also Decrypt Media reported that last month 90 Defi dapps were built by developers.Īcala is a project designe d to create a defi ecosytem in Polkadot such that there will be stuffs like staking,stablecoins and a whole suite of other applications.

Blockfolio app remove % of bitcoin