Terra’s popular DeFi protocol anchor to integrate with Polkadot’s Acala network
- Terra’s popular DeFi protocol, Anchor, is poised to integrate with Polkadot’s Acala network as part of Anchor’s plan to expand into a new blockchain.
- Acala will also be integrated with Wormhole, a cross-chain bridge to allow users to bridge their assets between Terra and Polkadot ecosystems.
- Meanwhile, Polkadot is aggressively proceeding with its stablecoin integration as it announced the launch of Tether’s USDT stablecoin on Kusama early Wednesday.
Anchor, the popular decentralized finance (DeFi) protocol on Terra, is ready to integrate with Polkadot’s Acala network.
The collaboration aligns with Anchor’s expansion plans into new blockchains and Polkadot’s continued adoption of DeFi.
Polkadot’s para-chain Karura and Acala with Liquid DOT (LDOT) and Liquid KSM (LKSM) will provide additional options for the UST stablecoin, according to a press release.
The group also intends to set up liquidity pools for stablecoins aUSD and UST on Acala. AUSD is a native decentralized stablecoin for the Polkadot ecosystem and Acala’s most popular product. Recently, AUSD received a $250 million war chest for luring use cases.
Additionally, there will be an integration of Wormhole, a cross-chain bridge with Acala that would allow users to bridge their assets between Terra and Polkadot ecosystems.
The main motive behind Acala and Terra’s partnership is to further contribute to the growth of the decentralized stablecoin market. So far, the economy of the market has surpassed the $25 billion mark. The stablecoin brand is dominated by USDT and USDC, stablecoins are pegged to the dollar. The market capitalization has now passed the $180 billion mark.
Also read: DeFi Aggregator: CoinStats users will soon be able to employ DeFi yield farming techniques
Anker’s other ventures
According to DeFiLlama data, Anchor is the third largest protocol in terms of TVL with more than $14.7 billion in digital assets provided by users. Anchor is one of the most popular DeFi protocols on Terra. It’s a savings and borrowing protocol with a massive 19.5% return.
After its successful growth on its native Terra, Anchor is conducting its expansion program to other base layer blockchains. Last month, Anchor launched on the Avalanche, a Layer One blockchain.
Meanwhile, Polkadot also runs a variety of stablecoin integrations. On Wednesday, Polkadot announced the launch of Tether’s USDT stablecoin on Kusama, Polkadot’s “Canary Network” for adding projects.
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