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- Terra’s popular DeFi protocol Anchor is all ready to integrate into Polkadot’s Acala network, as part of Anchor’s plan to expand into a new blockchain.
- Acala will also be integrating with Wormhole, a cross-chain bridge, for allowing users to bridge their assets between Terra and Polkadot ecosystems.
- Meanwhile, Polkadot is aggressively going on with its stablecoin integration, as it announced the launch of Tether’s USDT stablecoin on Kusama, early this Wednesday.
Anchor, popular decentralized finance (DeFi) protocol on Terra, is all set to integrate into the Acala network of Polkadot.
The collaboration is in compliance with Anchor’s expansion plans to new blockchains and Polkadot’s further DeFi adoption.
Polkadot’s para chain, Karura, and Acala, with Liquid DOT (LDOT) and Liquid KSM (LKSM), will make more options available for the UST stablecoin, as per a press release.
The group also intends to establish liquidity pools for stable coins aUSD and UST on Acala. A native decentralized stablecoin for the Polkadot ecosystem, AUSD is the most popular product of Acala. Recently, AUSD received a war chest of $250 million for luring use-cases.
Further, there is going to be an integration of Wormhole, a cross-chain bridge with Acala that would enable the users to bridge their assets between Terra and Polkadot ecosystems.
The main motive behind the partnership of Acala and Terra is to further contribute to the growth of the decentralized stablecoin market. As of now, the economy of the market has surpassed the mark of $25 billion. The stablecoin mark is dominated by USDT and USDC, stablecoins are pegged by the dollar. Meanwhile, the market capitalization has crossed the $180 billion mark.
Anchor’s Other Ventures
According to the data from DeFiLlama, in terms of TVL, Anchor is the third leading protocol with more than $14.7 billion in digital assets dedicated by users. Anchor is one of the most popular DeFi Protocols on Terra. It is a savings and borrowing protocol with a massive yield of 19.5%.
Following its successful growth on its native Terra, Anchor is running its expansion program onto other base-layer blockchains. Last month, Anchor launched on the Avalanche, a layer one blockchain.
Meanwhile, Polkadot is also doing a host of stablecoin integration. On Wednesday, Polkadot announced the launch of Tether’s USDT stablecoin on Kusama, the “canary network” of Polkadot for adding projects.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
