The treasury proposal is applied to support List PHA/kUSD pair on Karura Incentive program.
We are opening the HRMP channel for Khala Network and Karura Network, so that $PHA token can now transfer between Karura Defi hub and other parachains. Traders can swap $PHA into $kUSD or other assets like $KSM / $RMRK, $PHA token holders can also provide liquidity to Karura $PHA pools.
Karura / Acala is an Ethereum-compatible smart contract platform optimized for DeFi and scaling DApps to Polkadot. The blockchain has built-in DeFi protocols for application developers to leverage, including a decentralized stablecoin (Acala Dollar — aUSD), a trustless staking derivative (liquid DOT — LDOT), and a decentralized exchange.
Karura Swap is an automated market maker (AMM)-styled decentralized exchange protocol implemented and deployed as upgradable runtime modules on Karura. With support for both native Substrate tokens and ERC-20 tokens, Karura Swap is positioned as the gateway and liquidity hub of Kusama, and has already accumulated nearly $86 million in total value locked.
This proposal will start the bootstrapping period for trading pair PHA/kUSD on Karura Swap: https://acala.discourse.group/t/list-pha-kusd-pair-on-karura-swap-with-incentive/839
We are applying to Khala treasury for 100k $PHA to this listing incentive program. The funds will be sent to Karura Bootstrap address for reward distribution.
kUSD stablecoin is a decentralized, trustless, collateral-backed cryptocurrency whose value is strong-pegged to the US Dollar. By maintaining a strong-peg to the US Dollar, users are shielded from the price volatility that is common with many cryptocurrencies.
Beyond this, we think kUSD have a big chance to merge with aUSD in the near future. Acala team already proposed an enhancement of Acala and Karura’s on-chain economic and governance integrations by unifying the two stable currencies into one (aUSD), adding the Karura parachain as a member of the Acala Financial Council, and allocating a portion of Acala DOT Treasury to Karura in the form of KSM.
If the liquidity and trading volumn is good enough, we are expecting $PHA token can be one of the collateral assets for minting $kUSD, which will bring great use cases for Phala tokenomic. It will also help Phala Secure Mining Workers using multi Defi tools to earn higher capital efficiency.