Universal Asset Hub (UAH)

Overview

Liquidity is fragmented on different L1, L2 and parachains. Real adoption requires deep and ubiquitous liquidity accessible for any dApp on any chain and any parachain. This is the goal for Acala’s Universal Asset Hub (UAH).

The following documentation outlines the intended features and processes that Acala Exodus Upgrade intends to implement in the future. This document will continue to be updated and reviewed as we progress with the Exodus Upgrade. Please note that certain sections may contain inaccuracies or outdated information.

LST Variaty & Liquidity

Acala has been reliant on DOT, DOT LST (liquid staking token), and DOT derivatives as collateral and liquidity, and has been leading the Polkadot native assets TVL and xcm transaction volume. With the Exodus Upgrade, this will be taken to the next level and with expanded scope.

An initial step of the Exodus Upgrade is to boost DOT LSTs to DOT, to other LSTs, and to USDC/USDT liquidity, meanwhile launching with new LST partners that have significant synergy with Acala, and preparing expansion for multichain LSTs.

Types of LSTs:

Acala built:

LDOT, powered by the Homa protocol, is a DeFi-native non-custodial LST. It’s live and battle-tested on Acala

Acala hosted:

LSDOT, an enterprise-grade LST built by Liquid Collective, is a compliant and secure solution for more adoption through partners like Alluvial, Coinbase and Figment. It will be built on top of the Homa protocol and launched on Acala.

tDOT, a synthetic DOT LST by Taiga that aggregates LST liquidity. Already live on Acala.

Multichain LSTs:

We will expand to build multichain LST liquidity from where the demand is e.g. Ethereum LSTs including LSETH (enterprise-grade LST by Liquid Collective), stETH by Lido, tapETH (Curve for LSTs). Through building with the Tapio protocol (tapETH) in stealth mode in the past months, we have received reaffirming feedback to contribute our innovation in the ever-growing LSTFi ecosystem, which is now aligned with our strategy via the Exodus Upgrade.

Acala Multichain Asset Router

Fragmented liquidity leads to fragmented developer and user experience. Thus UAH aims to offer liquidity agnostic to blockchains and seamless to DApps. This is powered by Acala Multichain Asset Router built on top of the XCM standard and Wormhole protocol using Substrate and Acala EVM+. UAH supports both Substrate token formats and EVM token standards, and will expand to other standards that deem to bring liquidity and adoption.

LSTFi Ecosystem

An LSTFi ecosystem will be fostered to create innovative use cases and bring in more adoption of Web3, which will be powered by Acala EVM+ dApp platform and long-term yield farming from upgraded ACA tokenomics.

ACA holders can vote to direct ACA emission contribution to incentives programs for dApps and pools, and stake to participate in sharing ACA staking rewards and ecosystem project token contributions. This will potentially create a flywheel for ACA holder engagement and liquidity growth and will bring along more innovations, partners and communities to Acala.

Euphrates liquidity dApp

The Euphrates dApp will initially be deployed with DOT-based LST liquidity vaults, and later expand to support Ethereum and other multichain LST liquidity vaults which will open up opportunities for DOT holders to get exposure for Ethereum LSTFi and vice versa.