New launch sees Polkadot stablecoin Acala power Ethereum-based DeFi systems

The new Acala EVM brings together Ethereum and Polkadot with a composable, single-wallet that allows users to set their own gas fees and schedule on-chain transactions.

Bringing Polkadot tech to Ethereum

Acala’s engineering team has launched the Acala Ethereum Virtual machine (EVM) ahead of the ETHDenver 2021 hackathon, it said in a release shared with CryptoSlate today.

Acala is the so-termed “decentralized financial hub” and stablecoin of Polkadot that makes it fast and easy to use or build financial applications, improving trading efficiency and saving time.

Among the various offered features are a multi-collateralized stablecoin backed by cross-chain assets like Bitcoin, a trustless staking derivative, and a decentralized exchange to unleash liquidity and power financial innovations.

As per the release, the new EVM—a Polkadot-based innovation—enables Acala to provide Solidity, Substrate, and Web3 developers a complete full-stack to seamlessly integrate applications and experience the decentralized finance (DeFi) sector with a single wallet.

Acala EVM also brings protocol composability for EVM and Substrate runtime (aka pallets) and enables developers to build and deploy dApps on Acala with exceptional tooling support.

Although famously termed as an “Ethereum killer,” Substrate and Polkadot developers say the development is categorically different from Ethereum in a way that will empower many new, chain-level innovations outside of the EVM sandbox.

“We are firm believers in the power of Substrate and built the Acala EVM to optimize for Substrate’s full potential and longevity rather than simply redeploying Ethereum on Polkadot,” the Acala team said in a statement.

A ‘Composable’ Environment

dApps deployed in the Acala EVM can directly use native and cross-chain assets such as DOT, ACA, aUSD, renBTC, and others. ERC-20 tokens, in addition, can also be deployed in the EVM can also be made available at the runtime level, to be listed in the DEX, or (by governance approval) to be used as gas fee tokens.

This means that, for example, developers of the algorithmic stablecoin project Ampleforth can deploy AMPL contracts on Acala within a few minutes and make it available as a “native token,” so it can be used to pay transaction fees and listed directly on the Acala DEX on Polkadot.

Such tools help build cross-chain capabilities that bring users from diverse blockchain ecosystems (and use cases) together on a single platform while not straying fully away from one chain. This helps grow the crypto ecosystem.

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