- ‘Tree’ of NUTS Finance is receiving the Acala Ecosystem Grant.
- Together, they will elevate efficient trading.
- The collaborators will build a strong DeFi-focused network.
NUTS Finance’s ‘Tree’ is getting the inaugural Acala Ecosystem Grant. This protocol is a synthetic asset protocol. It optimizes liquidity fragmentation whilst increasing asset usability within the Polkadot ecosystem.
Powered by the Stable Asset system, ‘Tree’ enables incredibly efficient trading at low risk. It offers closely pegged assets that offer two capabilities. To elaborate, these are Stable Swap and Stable Asset.
Specifically, Stable Swap is a highly capable exchange liquidity pool. On the other hand, a Stable Asset is a synthetic asset that is backed by a basket of assets holding the same value. For instance, they can be various versions of DOT, ETH, BTC, or even stablecoins.
Acala made the decision to work with NUTS Finance because both teams realized that they shared the same goal. To highlight, this goal is to build a DeFi focused network. Acala, in particular, is a multi-chain hub for DeFi and liquidity on the Polkadot platform.
To elaborate, it is a layer-1 platform that is both Substrate and EVM compatible. This gives developers a chance to build apps using Polkadot-centric tools as well as Ethereum’s tools.
Besides this, Acala also offers built-in DeFi basics like the decentralized stablecoin — USD. It also comes with Liquid DOT (LDOT) staking and the Acala DEX. Moreover, as Acala is built on a substrate, it can receive upgrades without any hard forks.
At the moment, Tree has successfully launched the Stable Asset system to Acala’s Mandala testnet. To add on, Tree is now considering deploying on Acala’s Kusama-based network — Karura. We may hear more about this development soon.
Finally, the Acala foundation Grants Program will continue to focus on improving software development to benefit the Acala and Karura networks. To do so, it will also boost research within the sector of DeFi protocols.