On July 26th, Acala was invited to attend an interview with Camila Russo, the founder of The Defiant, a world-renowned DeFi media. In the interview, he described why Acala should be built on the Polkadot network and the recent progress of the project and how Acala will respond to the black swan in the market. How to build an open decentralized financial market and so on.
Acala x The Defiant
The Defiant
The Defiant is the world's most influential DeFi evangelist. In the ever-changing market, it will bring users the freshest, most interesting and deepest DeFi reports every day. Founder Camila Russo used to work for Bloomberg News and worked in New York, Madrid and Buenos Aires. He focused on reporting on the financial technology and crypto markets. Now he has published the book "The Infinite Machine". The huge influence made her become the leading DeFi queen in the global DeFi market, and her status is similar to Mary Meeker of KPCB in the Internet era.
1 Hello， Defiers！
On July 26, Camila Russo, the founder of The Defiant, a world-renowned DeFi media, interviewed Ruitao Su and Acala COO Bette Chen, members of the Acala Council. At present, the high-profile DeFi rookie Acala has not only received investment from several world-renowned institutions including the Web3 Foundation, Polychain, Hashkey, KR1, etc., but also built a new open financial infrastructure based on Polkadot. Acala is known for its richness and diversification of products. It has created stablecoins that support multi-asset mortgages, released pledged asset liquidity derivatives, built-in decentralized exchanges, and more. Camila Russo said: "Every function of Acala products will be a huge potential market, but this ambitious team completed all modules at almost the same time." As of now, the latest test network Acala Mandala TC4 Candy Festival has been launched : " Acala The third season of Mandala Candy Festival cross-chain trading competition officially opened》
In the future, Acala will become the financial center of Polkadot. Anyone who enters Polkadot will need to log in to Acala. Although inspired by MakerDAO, Acala has optimized designs that are far superior to early DeFi products in many aspects, such as clearing, oracle services, support for cross-chain multi-asset mortgages, release of Staking liquidity, DeX, synthetic assets, etc. This interview with The Defiant and Acala will discuss why it is based on Polkadot and its vision for the future.
The following is a compilation of the core themes of the interview, with some deletions without changing the original intention
1、Down The Rabbit Hole
The same experience as most practitioners stems from their curiosity about Bitcoin and entering the blockchain industry. The Acala team is basically a professional technical engineer with a technical background and careful planning and development of Acala. Two years ago, we started using Polkadot's Substrate to build our own blockchain framework, and the story began.
2、The Early Realization
Although 2017 experienced 1CO and many negative voices emerged in the market, deep down, we are convinced that the blockchain itself will be valuable and may be applied in real life at some stage in the future. Therefore, at that time we were considering where the next breakthrough point in the industry was, where was the area that would really have a huge impact in the short term, and what projects would continue to be valuable in the next 5-10 years.
3、Building on Polkadot
Polkadot supports the sharing of security on the chain, which is one of the reasons why it is more suitable for our project. As a financial infrastructure, Acala will become the Polkadot financial center. If users want to use Polkadot financial products, the first thing they think of is to log in to Acala. The stablecoin in the financial infrastructure will become a circulating asset that supports the entire ecosystem. Polkadot is more like Layer 0.
For Acala, building a rich and open financial ecosystem is a real service. We have a stablecoin, built-in Dex, staking derivatives, etc., and then our ecology also includes bridges and decentralized applications. Therefore, users can see the emergence of vertical financial stacks on Polkadot, and it is foreseeable that many such vertical stacks will appear in the next few months.
4、Double Network Project
Acala is an open financial infrastructure. Whether it is a low-value advance network or a very secure main network, we will provide financial services on demand. For users, testing on Kusama is equally important, and real testing can be done with less cost. Imagine a worthless network tested under the same incentives, with less risk and faster flow cycles. This is Kusama. Then deploy on Polkadot, and it will be a bank-level secure mainnet. By making the two networks parallel, we have an effective network transition environment.
If we adjust the financial policy directly on the mainnet, it will expose us to extremely high risks. We can test on Kusama to observe the market and users’ reactions, and give more references to help Acala grow rapidly on Polkadot. A very high-value financial center.
At present, both ecosystems are very active. A Kusama hackathon that lasted for six weeks is underway. About 350+ developers have already joined it. Acala also encourages more people to implement multiple DeFi products based on the Polkadot ecosystem. (See more: " Code for DeFi! Acala helps Hackusama explore the new cross-chain DeFi ecosystem! ")
5、The Immovable God
Simply put, the names of different functions of the Acala network have different meanings. As the immovable Pluto in Japanese Zen culture, Acala means unshakable, which is also the unshakable stability that we hope to give aUSD. In fact, we also have related articles to explain the profound meaning of our platform name: " Interesting Talk | Acala Cultural Enlightenment and Design "
6、Cross-Chain Bridges
Acala has reached a cooperation with Ren, a world-renowned cross-chain asset liquidity platform, aiming to create more diverse, efficient and open financial services. Ren has deployed the RenVM chain bridge in the Acala network to support renBTC and other mainstream crypto assets as collateral to generate aUSD, helping more BTC users enter Polkadot's vast multi-chain financial ecological alliance, and unlocking the 100 billion BTC DeFi market at a new level. (See more: " Acala and Ren, a world-renowned cross-chain asset flow platform, have reached cooperation ")
7、Black Thursday Lessons
If Black Thursday happens again, how will Acala protect users’ assets? There will certainly be black swans in the future. How will Acala respond? How does Acala plan and design so that Acala can survive the black swan smoothly? In addition, in the third season of the Candy Festival, we will also hold an emergency shutdown flash event to verify Acala's multiple security mechanisms. Click for details: " Foresight | Acala Network liquidation design "
8、No-Fork Upgrades
In fact, the open infrastructure we are working hard to develop is constantly evolving and improving, which is the core of the continuous advancement of the entire industry. It will always change. You cannot deploy a smart contract that will remain unchanged for 1,000 years.
9、Staking Derivative
For us, providing the Homa protocol for services is to allow PoS assets to release pledge liquidity without affecting security, which is very important. This is the premise for the continuous development of all staking markets. Click to learn more: " Homa Chapter|How much do you know about Acala?" 》
10、Decentralization Goal
Our ultimate goal is to ensure that power is truly decentralized. The definition of true decentralization is that even if the team members and founding team members leave, the project can still survive and iterate and develop on its own. Acala will achieve decentralization in a progressive way.
英文专访原文见：Developers Will Wake Up to the Fact That There's a Toolkit to Build Full-Fledged Customized Chains:https://thedefiant.substack.com/p/developers-will-wake-up-to-the-fact
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About Acala
ABOUT US
Acala-the world's first decentralized open financial alliance, aims to create an open financial framework in conjunction with the Polkadot ecosystem. Acala is composed of the Honzon protocol, a stable currency that supports cross-chain multi-asset mortgage, and the Homa protocol, which releases the liquidity of pledged assets. It aims to bring stability and improve liquidity to global encrypted assets. At present, Acala has received official financial support from the Web3 Foundation and has received investment from several world-renowned institutions including Polychain, Hashkey, KR1, etc.