Manta Network & Acala Successfully Implement Cross-Chain Communication

Manta Network
3 min readAug 13, 2021


Manta Network and Acala have successfully implemented cross-chain communication on testnet using XCM, a cross-chain message system designed for Polkadot. The collaboration demonstrates composability within the Polkadot ecosystem, and also highlighted Manta Network’s capability to privatize parachain assets. In this project, various steps were taken to prove different functionality:

  1. Teams successfully transmitted Acala assets from the Acala chain to Manta’s chain.
  2. The assets were also successfully privatized on Manta Network.
  3. The private asset was reclaimed back to the original asset on the Acala network.

Cross-chain communication and composability are key value propositions for blockchain projects building on the Polkadot ecosystem. The successful implementation through the Manta and Acala collaboration validates the features.

Flow diagram demonstrating the use of XCM to privatize and redeem ACA/aUSD

Specifically, with Manta Network, the ability to leverage such features on Polkadot enables it to offer privatization of any parachain asset, rather than limiting private transacting to its own assets. Furthermore, the ability to privatize parachain assets will also power its private AMM-based DEX, MantaSwap. Once both networks are live, one could imagine a use case where a user mints Liquid DOT (LDOT) on Acala, transfers cross-chain to MantaSwap, and provides liquidity to an LDOT pair on MantaSwap or privately swaps LDOT for another token on the DEX.

About Manta Network

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Manta Network is the on chain privacy solution for blockchain assets build from the first principle. In short term, Manta will be a product that enables high performance private DeFi transactions, such as FT/NFT transfer, AMM styled swap. In the long term, Manta will be the platform for privacy preserving blockchain applications.

Manta’s founding team comprises many US cryptocurrency veterans, professors, and scholars whose experience includes Harvard, MIT, and Algorand. The advisors of Manta include Hypersphere Ventures co-founder Jack Platts, Polychain partner Tekin Salimi, former Web3 Foundation co-founder Ashley Tyson, and Consensys’ Shuyao Kong. Manta has previously completed a million-dollar seed round of financing led by Polychain and participated by Three Arrows Capital, Multicoin, Alameda, and Hypersphere. Manta is also a grant fund recipient of Polkadot’s official Web3 Foundation. Manta also is an outstanding member of the Substrate Builder Program and the Blockchain Accelerator of the University of Berkeley.

About Acala

Acala is an all-in-one decentralized finance network offering a blockchain platform secured by Polkadot, as well as a suite of cross-chain financial applications that let users trade, issue self-serviced loans, become liquidity providers, access trustless staking derivatives (liquid DOT — LDOT), and earn high-interest APY on their digital assets. The network is scalable, Ethereum-compatible, and optimized for DeFi.

Acala was founded in Oct 2019, has received several Web3 Foundation grants, has backing from Coinbase Ventures, Pantera Capital, Polychain Capital, Digital Currency Group, Arrington XRP Capital, and other top firms, and has a distributed team in New Zealand, China, Europe, Brazil, and the United States. As an open platform, Acala enables finance-oriented dApps to deploy for using smart contracts or built-in protocols with out-of-box cross-chain capabilities, security, and financial optimizations.

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