Today Astar Network announced it is opening new HRMP channels with Acala. But, what does this mean?
Astar and Acala are both parachains projects that are connected to the main Polkadot Relay chain. But each parachain has its own governance to determine how blocks are processed and how to communicate.
On Polkadot two parachains can declare to open a channel with each other to begin sending messages and transactions to each other. Today Astar and Acala did this with HRMP.
By opening this channel of communication both projects can leverage the strengths of each other. For example, Acala has a stablecoin aUSD, which is is minted from a variety of reserve assets. By connecting to Acala, aUSD can be moved to Astar and used with different dApps of the Astar ecosystem.
Plus, other assets can be exchanged between the two to create new LP pairs, new sources of collateral, new staking opportunities, and more. The goal is for Polkadot projects to build an ecosystem together by using the strengths of different projects. And, this includes connecting to networks outside of the Dotsama ecosystem-already work routes to Ethereum, Cosmos, and BTC.
Announcement is here: Astar-Acala Announcement
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