Featured Q&A at Polkadot’s first Web3 Builders Webinar

On February 18th Polkadot hosted its first Web3 Builders webinar, Laminar & Acala co-founder Ruitao Su, Laminar CTO & Acala Chief Architect Bryan Chen, Laminar & Acala COO Bette Chen were invited to attend. We share how Acala stable Assets and Laminar “mirror asset trading” realize cross-chain multi-asset DeFi through technology, what application scenarios will be in the future, and how to build Web3 open financial ecology.

🔗 Copy the link to view the full replay:

https://www.crowdcast.io/e/polkadot-web3-builders-laminar-acala

During the webinar, which was attended by hundreds of people, we picked 13 of the most representative questions to answer for our community members:

Ruitao Su: That’s a very good question. There are a lot of differences between us. Take our economic model and governance module for example. First of all, we have published the first edition of the economic white paper, which describes how the Acala network rewards are currently allocated to users who participate in our parallel link slot auction. Also, our mechanism white paper has been posted on GitHub for those interested to check it out. In addition, in terms of the governance module, as a parallel chain, whether it’s connected to Polkadot or Kusama, we have three governance boards, and the votes of the currency holders for the members of the board and the votes of the currency holders for certain parameters or operations. The first is our financial risk control and governance committee, which is mainly used to adjust the financial parameters associated with the system and design the financial model. The second is our technology management committee, can undertake adjustment with respect to a few technical parameters; The third is our general governance board, which makes important decisions on certain operations. So that’s our governance framework. There are different points that allow us to activate the community and optimize the Stablecoin protocol as early as possible. Of course, we will publish more complete governance details later.

Ruitao Su: I think so, as far as I know Katal is going to be the next generation of standard financial framework infrastructure, I know this project is great, and “collaboration” is the best thing for the Polkadot ecosystem or the ecosystem of Blockchain as a whole, So any worthwhile project will be linked to our Acala network, to play a greater network value for ecology. Similarly, MakerDao and Kava are not competitors for us, but partners who keep advancing on the road of DeFi. They have paved the way for DeFi. I believe that our DeFi projects will develop better and better in the future with continuous progress. There are opportunities for cooperation.

Ruitao Su: There is no plan for this at present, but the Substrate development team is already working in this direction. For example, ChainX, our ecological planning partner, has made great progress in this direction. They have launched X-BTC and the first BTC smart contract platform. They will be one of our solutions to access BTC. Polkadot is also making good progress on the BTC bridge, which we are looking forward to, although the final decision on how to access BTC will be decided by Acala coin holders.

Ruitao Su: Interested friends can go to GitHub to have a look at the feed pricing system, using Offchain worker to achieve a reputable feed pricing system. You don’t need to pay anything to run Acala’s predictor nodes, and you get rewards from the Acala network for effective feeding rates. In addition, the selection of predictor nodes is part of our governance module, and each predictor node is voted for. Many of the current feeding sources in the market are not decentralized, so Acala’s built-in exchange is decentralized similar to Uniswap and will be developed in a more decentralized way in the future. Laminar is the same pricing mechanism, requiring rapid and frequent matching of accurate and reputable price sources, such as current stock prices via Bloomberg. Due to the limitation of performance on the ethereum platform at present, the price update of our test network on Ethereum cannot be fully synchronized in real time, and there is a little deviation, but this problem can be solved well by Substrate. If you are interested in our feed pricing system, keep an eye out for Acala and Laminar developments.

Making 🔗 :

https://github.com/AcalaNetwork

Ruitao Su: The pledged DOT is a part of governance in our Homa agreement. The selected verifier node is the optimal one elected by the governance committee, and the members of the governance committee are elected by the l-DOT holders, which is a decentralized governance process. As l-dot holders, you need to choose the governance board member you trust most, and the governance board member finds the validation node with the most stable returns, maximizing what L-dot holders take in Staking.

Ruitao Su: In the future, we will integrate a decentralized exchange like Uniswap to support it, and we don’t need any permission to access it. The key to this is to have a unified Token standard, which we have just introduced that we are pushing forward. The Boca Standard Proposal (PSP1) will be continuously promoted to participants already in Polkadot Ecology.

Ruitao Su: The best solution is to select high-quality assets as collateral for the Acala network as possible, which is managed by the general governance committee, which is a relatively long process. For example, if you want to choose a certain asset in the chain, considering the quantity and liquidity, as well as the degree of decentralization, you need to make the choice as carefully as possible at the beginning. That is why we only chose DOT and BTC as collateral at first. Although many people will have their own choice of collateral, the process of adding collateral will take some time. As more and more users join our network, we will gradually increase the collateral based on community suggestions.

Ruitao Su: We have a very good relationship with ChainX. They are one of our Acala eco-program partners. When the chain is completed, their X-BTC can access the Acala network as collateral. As for their PCX, we are still talking about the next step plan for the time being, but we have many points of cooperation. For example, their PCX can be connected to our DeX. So far, the cooperation is only about X-BCT.

Ruitao Su: In addition to the predictor, the liquidator, the handler of the CDP in the risk state, runs through the Offchain worker, which is also a highlight of our Acala, because we can write the logic such as feed price, calculation and liquidation rules into the Offchain worker. The store on the chain is read directly, and the code can also be updated with the Runtime. For example, we can set up periodic liquidation logic and set incentive mechanism for liquidators, which can be one of the tasks of Offchain worker.

Ruitao Su: Yes, we launched Karura on Kusama because we needed to test different functions to ensure the smooth and safe operation of the main network connected to Polkadot. You know, it’s better to have a penny problem than a dollar problem, so it’s much smoother to run on a low-value network than it is to start on a high-value main network, which is why we ran both networks. There is no link between the two networks at present, and the collateral chosen by the two networks is also different. One uses KSM as collateral, while the other uses DOT. As for collectors, we need collectors for both networks, but we don’t need too many. Less than 100 collectors can guarantee the stability of our network blocks.

Ruitao Su: KaUSD is generated on Karura pioneer network, while aUSD is generated on Acala main network. They are not equivalent. The value of KaUSD is 1% of aUSD, just as the value ratio between KSM and DOT is.

Ruitao Su: There’s no specific task, just participate in our parallel chain slot auction, help us become a parallel chain for network security, and we’ll chain the rewards just like you earn interest by depositing assets in Compound, All you have to do is help us lock down your DOT and help us bid on the parallel chain to get our ACA.

Ruitao Su: What l-dot owners earn is revenue on Polkadot Staking, and we’re maximizing that revenue with a governance board that chooses the best validation node. In the future, you can use L-dot as collateral for our Acala network, lend aUSD for liquidity, or leverage operations such as Staking.

Past review:

Mandala is launched to explore the new world of cross-chain multi-asset DeFi!

Black Swan Raid, why DeFi Market needs “average Stan”?

DeFi new ecological breakthrough in 2019, how to return to the essence of lending in 2020?

How does Acala build an open cross-chain financial application platform to achieve global trust and collaboration?