Acala x Ren
Bringing BTC to Polkadot
On July 22, Acala 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.
The cooperation between Acala and Ren will become an important milestone in the development of cross-chain DeFi, making more chain-free and private value transfer services faster and more efficient. At present, Ren has connected BTC, BCH and ZEC to the Ethereum network through the RenVM chain bridge, completing the product landing. As the Polkadot ecological financial center, Acala will provide a complete set of native DeFi components-multi-collateral stablecoins, staking derivatives and built-in decentralized exchanges to accelerate the development of cross-chain DeFi.
Like-minded and like-minded, in order to serve the wider Web3.0 community and provide high-performance, high-liquidity and low-threshold cross-chain DeFi user experience, the two teams of Acala and Ren have a natural cooperation point. After months of close cooperation between the two project teams, we have completed the integration of the Ren protocol into the Acala Mandala TC4 testnet, which is about to open a new chapter in cross-chain DeFi, and strongly promote the development of Web3 open decentralized finance.
Ren x Acala Flow
Ren builds an exclusive portal for cross-chain assets by deploying the RenVM bridge chain bridge module in the Acala network. Among them, the BTC gateway is developed by RenVM. Users can generate or destroy renBTC on Acala through the gateway module. This will not only enrich the types of assets that can be used in the Acala network , but also bring a new cross-chain to Bitcoin. DeFi usage scenarios :
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Acala supports renBTC as collateral to lend aUSD
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renBTC can be quickly traded on the Acala Swap decentralized exchange. Currently, the exchangeable currencies are DOT, LDOT, ACA, aUSD and XBTC.
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Users can obtain DOT through Acala Swap to participate in Polkadot network staking to obtain income, and use staking derivatives (such as LDOT)
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Provide BTC liquidity for Acala Swap decentralized exchange to earn additional stable revenue share
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The converted aUSD can be transferred to the Laminar platform to participate in margin trading of synthetic assets such as EURUSD foreign exchange, gold, stocks, and BTC & ETH
Why does renBTC join the Acala network?
Acala has now completed renBTC as one of the payment currencies for native transaction fees. To put it simply, after new users issue renBTC in Acala through Renbridge, if they want to over-collateralize renBTC to lend out aUSD, but there is only renBTC in the wallet, they can use renBTC to pay network fees to complete the transaction. In the early stage of development that does not affect security, the fee for generating renBTC in the Acala network will be exempted, prompting renBTC to become a powerful cross-chain DeFi booster in Acala.
Just like Ren, there are many other ecological high-quality projects that want to enter the Polkadot multi-chain ecosystem. Compared to becoming a separate parallel chain, building related applications on the Acala network is cheaper and easier to implement . With the launch of the RenVM mainnet, it also means the opening of a new era of cross-chain interoperability. "Ren is very excited to be able to work with Acala, Polkadot and the Web3 Foundation. In order to realize the vision of allowing permissionless value transfer between any blockchain network, Ren has taken a critical step. Variable interoperability in the crypto ecosystem Sex is about to come true, and we have taken the first very exciting step.” Ren CEO Taiyang Zhang said.
In the upcoming Acala mandala TC4 Season 3 Candy Festival event, Acala will jointly hold a cross-chain trading competition with Ren, Laminar, Polkawallet and Polkaworld. Users can test the integration of related RenVM on Acala for the first time, including experiencing renBTC generation and exchange Other assets and functions such as providing liquidity for decentralized exchanges. By then, there will be more new and interesting gameplay announcements, so stay tuned!
About Acala
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.