LJ Articles| 3/09/2021 | #10
The DeFi Hub Of The Internet Of Blockchains
by Lorimer Jenkins, y.at/⌛🚀💎🙌
One of the best things about Crypto is the fact that you can earn really attractive interest rates with your Crypto. Acala/Karura bring these amazing capabilities together, for example on Ethereum they have a stable coin called Dai. You would have to buy Dai on one site. But then if you want to swap it you then have to go on another site, then by the time you have swapped it and transferred you have spent half your Ether on gas fees. That’s no fun !
What is Acala
Acala is the all-in-one DeFi hub of Polkadot. Acala is an Ethereum-compatible platform for financial applications to use smart contracts or built-in protocols with out-of-the-box cross-chain capabilities and robust security. The platform also offers a suite of financial applications including: a trustless staking derivative (liquid DOT), a multi-collateralized stablecoin backed by cross-chain assets (aUSD), and an AMM DEX — all with micro gas fees that can be paid in any token.
What is Karura
(1st ever parachian auction winner)
Karura is the all-in-one DeFi hub of Kusama. Founded by the Acala Foundation, Karura is a scalable, EVM-compatible network optimized for DeFi. Karura will deliver decentralized financial products and stable assets to Kusama’s entire ecosystem of networks. Stay liquid while staking. Perform instant cross-chain swaps.
Both Karura and Acala are backed by multiple funds, including Coinbase Ventures, Pantera Capital, Polychain Capital and Hypersphere. Karura and Acala operate in parallel. Specifically, Karura is implementing DeFi on Kusama in the same way that Acala is offering DeFi on Polkadot. The network is built with almost the same codebase as Acala: the two platforms provide scalable, convenient and fast DeFi cross-chain ecosystems for Kusama and Polkadot. Parachain Karura is a platform that allows users to create effective, low-cost and complex financial applications, saving time and increasing trading efficiency.
Karura also provides a liquidity protocol for KSM tokens if you don’t want to participate in auctions, but still aim to receive staking rewards. However, users will have to wait seven days to unfreeze the tokens. Users can leverage the liquidity protocol and swap KSM to LKSM; this token will include the annual percentage yield that you receive, and, most importantly, it will be liquid, making the staking itself liquid.
This is definitely a project to watch over the next 5 years, the first DEX that can seamlessly trade every Crypto will be huge !
by Lorimer Jenkins
Disclaimer : I am not a financial advisor these articles for education purposes, new articles released by 12pm BST every day.