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    Acala Announces $250M Fund

    Polkadot's Acala Launches $250 Mln Fund for aUSD Ecosystem.

    A parachain on Polkadot called Acala launches a $250 million aUSD Ecosystem Fund. The purpose of the fund is to stimulate the adoption of the aUSD stablecoin. This could be achieved through allocation of grants to startups that develop applications using aUSD on the Kusama or Polkadot parachains. These startups are working in the areas of decentralized autonomous organizations, payments, and decentralized finance. 

    Among some of the notable investors are several large venture capital companies: Arrington Capital, Kraken Ventures, Pantera Capital and others. 

    Acala has intention to cooperate with other parachains on Polkadot to promote adoption of the new stablecoin and stimulate cross-chain activity. These parachains include Astar Network, Centrifuge, Efinity, HydraDX, Manta, Moonbeam, OriginTrail, Parallel and Zeitgeist

    aUSD can be issued with the help of several collateral (reserve) tokens, such as Polkadot, Kusama, Acala и Karura coins, and then used in staking. This allows users to make profits while maintaining ownership of the reserve assets. 

    Acala USD was launched in February 2022. It plays the role of the key link in the ecosystem of interconnected blockchains, ensuring the functioning of its economy.

    Acala was founded by developers from New Zealand. They have been working on creating a decentralized stablecoin for over three years. The global goal of the developers is to create a cross-chain ecosystem in which the US dollar will be the fundamental “building block”.

    Polkadot is the first project from the Swiss Web3 Foundation (W3F). It runs a protocol that promises interoperability and scalability across blockchains.