Acala, a pioneering Polkadot-based DeFi ecosystem, announced that the Ethereum-compatible Polkadot local virtual machine Acala EVM is operational. This is an important milestone for the entire segment of cross-chain interoperability systems.
According to the press release on U.Today, with the new Acala EVM, blockchain developers can use the entire technology stack (Acala + Substrate + EVM + WASM) for a single wallet.
Smart contracts embedded in the new EVM can seamlessly use all Polkadot supported assets such as DOT, ACA, aUSD, renBTC and so on. Also, Ethereum-based assets (ERC-20 tokens) can be listed on Acala-backed DEXs and used for gas fee payments.
For example, after a token holder sends his wrapped Ethereum (WETH) to Acala, he can pay gas fees in Ethers (ETH) for this purpose without the need to purchase ACA tokens. Also, Acala EVM supports a native oracle network to broadcast real-time price streams and supports many types of protocols: DEXs, stablecoins, lending / borrowing tools, and more.
Acala: Brings the DeFi Experience to Polkadot
Acala is a platform for decentralized financial protocols using Polkadot’s blockchain capability. Acala is built around the core stablecoin aUSD and is based on yield farming, synthetic asset trading, interest yield, etc. It offers many use cases, including.
Acala’s gas fees are very low and transactions are concluded almost instantly. Introduced L-DOT, a unique stake derivative, to release liquidity from staked Polkadot (DOT) tokens. Additionally, Acala hosts stablecoins with Bitcoin (BTC), Polkadot (DOT) and L-DOT as collateral.
All Acala processes are decentralized: the protocol is managed through in-chain referendums. Finally, Acala has an on-chain independent wealth fund to ensure sustainable network progress.