A short guide to Acala Network and moon farming
Launched in 2019, Acala Network (ACA) is an all-in-one decentralized finance (DeFi) platform where users can complete financial transactions via smart contracts or protocols. Stablecoin Acala Dollar (aUSD), indexed to USD, feeds on decentralized applications (DApps) and DeFi operations on the network. So far, the platform has not created a native ACA token or released its mainnet.
Acala Network is Polkadot’s cross-chain DeFi hub (DOT) , the place where customers can bet, trade, borrow, borrow, win and more. Like all DeFi hubs, acala network goals are to grant a choice platform to Ethereum (ETH), the place customers can get entry to DeFi offerings and DApps without experiencing scalability issues. Furthermore, with the Acala micro-gas price system, the community solves the issues of fuel price inflation and grid congestion. As a result, customers solely want to pay a small charge when finishing operations on the network.
The Acala Network affords DeFi offerings such as stablecoin foreign money (aUSD), liquidity making a bet (via Liquid DOT or L-DOT) and Integrated Automated Market Maker (AMM) decentralized change (DEX). The community makes use of two protocols to furnish stablecoin offerings and net staking offerings: the Honzon protocol and the Homa protocol.
Acala Network implements AMM-based DEX
Acala Network implements an integrated AMM-based DEX for users to trade assets in liquidity pools. AMM provides liquidity to the DEX and ensures that the total pool liquidity remains the same through automated trading based on a pricing algorithm. With DEX, users can exchange tokens instantly without the need for an order book, while liquidity providers are incentivized by providing tokens to liquidity pools.
The interesting thing is that Acala DEX allows the trading of any cryptocurrency between blockchains connected to Polkadot. Since Polkadot is such a popular project, Acala DEX has a large collection of cross-chain liquidity pools. Unlike Ethereum-based AMM DEX, trading fees on Acala are also much cheaper and users can pay these fees in any cryptocurrency.
With the advent of DeFi in the last year, there are many established platforms that offer stablecoin, liquid stacking, or DEX services. Because Acala provides all three services, the network has a lot of competition:
In the multi-supported stablecoin scenario, MakerDAO (DAI) presently dominates. However, MakerDAO suffers from scalability problems due to the fact Ethereum is the underlying blockchain technology. Ethereum is sluggish and handles round 10-15 transactions per second. In contrast, Acala is phase of Polkadot, which handles at least 200 transactions per second. Due to Polkadot’s high performance, Acala Network is greater than 10 instances quicker than MakerDAO.
However, Uniswap does not have a stable medium of exchange (such as aUSD) or peer-to-peer derivatives (such as L-DOT). The Uniswap platform only gives users the ability to trade tokens in a decentralized manner, which is only a fraction of what the Acala Network can achieve.
In net betting, structures like StaFi permit customers to wager on more than one cryptocurrencies and obtain spinoff bets accordingly. In addition to its native token, StaFi additionally holds many famous tokens, such as ETH and DOT, and plans to make its catalog bigger. Acala solely presents DOT snooping and presents one kind of token state. On a top note, one record states that this is a power of the community as it affords equivalence and will increase liquidity.
Unlike Ethereum-based protocols, Acala no longer relies on exterior liquidators to reveal and shut risky positions. In contrast, the Honzon Protocol automates approaches via a special built-in service, referred to as off-chain workers, to enlarge the balance and protection of aUSD.
Another huge benefit of the Acala Network is its compatibility. The community will install a committed Acala Ethereum (EVM) digital desktop so that builders can construct Ethereum like minded functions and create cryptographic belongings with performance comparable to the ERC-20 token on Acala. In addition, the community accepts functions written in famous programming languages which are compiled for WebAssembly, which reduces the enter restrict for utility development.
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If you’re curious about what moon farming is like, that’s not what we’re going to cover here. Moon is a cryptocurrency on the social media platform Reddit that crypto enthusiasts cultivate or earn based on the quality of their content. In 2020, Reddit launched a new feature called Reddit Community Points (RCPs) to reward creators on various subreddits—discussion boards or user-generated communities. The increasing popularity of crypto has also led to increased interest in Moon farming.
Because RCP is built on the Ethereum blockchain, community points are converted into digital tokens that users can earn by posting quality content and collecting votes.
As part of its initial phase, Reddit implemented Community Points on two subreddits – r/Cryptocurrency and r/FortNiteBR. Different cryptos represent points earned from this subreddit; Moon token for r/Cryptocurrency and Brick token for r/FortNiteBR. Farming earns moon tokens by way of interacting with and developing content material in the r/Cryptocurrency forum. Here are some particular approaches to farm the moon on the subreddit.
Engaging in discussions and helping new customers can assist you to earn internet moon tokens. You will earn karma factors via this action, and the use of karma allows you to earn moon tokens. However, R/cryptocurrency is a neighborhood of three million users, so this is less difficult to state than done. Also, you can get poor Karma if your publish or remark has been taken down, so constantly suppose earlier than you post.