Acala parachain launches $250 million fund to promote its stablecoin

The Acala parachain project, operating in the Polkadot ecosystem, announced the launch of the aUSD Ecosystem Fund worth $250 million. It is designed to stimulate the use of the Acala USD (aUSD) stablecoin.

Various sector players are taking part in the initiative, including Alameda Research, Arrington Capital, Digital Currency Group, IOSG, Jump Crypto, Kraken Ventures and Pantera Capital.

The Acala fund will grant early-stage projects in the Polkadot ecosystem that work in areas such as decentralized finance, derivatives, payments and DAOs, and use the aUSD token.

Acala is also collaborating with other Polkadot parachains — Astar Network, Centrifuge, Efinity, HydraDX, Manta, Moonbeam, OriginTrail, Parallel and Zeitgeist — to integrate its stablecoin.

The Acala startup was founded by New Zealanders. According to the founders, the Acala USD stablecoin enables liquidity for assets locked in staking. The token can be issued collateralised by various cryptocurrencies, including Polkadot, Kusama, Acala and Karura.

In February, the Astar platform, operating on the Polkadot blockchain, launched the Astar Boost Program worth $100 million.