Astar Network has opened a new HRMP channel with Acala to strengthen the mission of creating the next generation of innovative decentralized apps and process the adoption of Web3. The update brings aUSD to Shiden, the sister network of Astar.
Astar Network made the announcement. It comes after the previous week’s opening of the HRMP channel between the Shiden and Karura networks. The channel between the two allows the free movement of tokens across different chains. Tokens included are KAR, SDN, and aUSD.
User experience in the cross-chain transaction was considered by duly integrating the assets into the portal.
Astar Network taking steps to further its activities was made more evident by the end of the first quarter when the network joined the aUSD ecosystem worth $250 million to fund startups that are in their early stage with dedication and commitment to achieve the goal.
Startups supported were involved in building applications that have strong use cases of stablecoins on Kusama and Polkadot parachain.
The value will now be added to the ecosystem from both sides. While the new HRMP channels will extend the possibilities to protocols built on Shiden and Astar Network, liquid tokens like LDOT & LKSM will add options for stablecoin in creating pairs.
The blog post published by Astar Network has also highlighted that ASTR and SDN, the native tokens of the network, were available on the Finance Network of Acala. They have been customized for decentralized finance and protocols based on Acala’s EVM+ environment.
Hoon Kim, the Chief Technical Officer of Astar, shared his vision stating that there is a strong chance for the future to be dedicated to decentralized applications provided the right tool and minds are used.
Hoon Kim called the recent update a great start to understanding the road of Astar to becoming the hub of innovation on Polkadot.
aUSD, or Acala USD, is a stablecoin protocol that is pegged to the US Dollar to enable a stable currency that is decentralized and operational in cross-chain activities. Minting aUSD allows holders to earn, spend, trade, and access services without worrying about price volatility.
Additionally, holders can retain control over their reserve assets.
The advantage of aUSD is that it can be seamlessly incorporated by any blockchain linked to Kusama or Polkadot. It can also be integrated into any other blockchain network through cross-chain operations.
Acala is responsible for powering the aUSD ecosystem as a DeFi network protocol. Acala USD is the core product of Acala. It is a decentralized and crypto-backed stablecoin that is also multi-collateral.
Astar Network is an innovation hub supported by Polkadot with the ability to assist in building decentralized applications with EVM and WASM smart contracts. The Build2Earn model of the network empowers the builders to earn by staking mechanism for the code they write and build on decentralized applications.