The Acala Network is a smart contract platform designed to serve as the central hub for decentralized finance (DeFi) within the Polkadot ecosystem. It offers a suite of financial tools, including a decentralized exchange (DEX), a stablecoin network, and liquidity staking, all built for seamless interoperability and user efficiency.
Key Features of Acala
- Polkadot Parachain: Built on Substrate, Acala leverages Polkadot’s scalable infrastructure while maintaining its own chain.
- Multi-Currency Gas Fees: Users can pay transaction fees in various supported cryptocurrencies, enhancing flexibility.
- EVM Compatibility: The Acala EVM enables Ethereum developers to deploy dApps and smart contracts effortlessly.
- Native Token (ACA): Used for governance, gas fees, and collateral in DeFi applications.
👉 Discover how Acala’s stablecoin, aUSD, powers cross-chain DeFi
How Acala Works
Acala operates as a Polkadot parachain, combining Substrate’s modular framework with Polkadot’s shared security. Here’s a breakdown of its core components:
1. Acala Swap (DEX)
- An automated market maker (AMM) enabling cross-parachain token swaps.
- Supports trading of native Polkadot assets with minimal slippage.
2. Homa Protocol (Liquid Staking)
- Stake DOT to mint LDOT, a liquid staking derivative usable across DeFi apps.
- Similar to Ethereum’s stETH but optimized for Polkadot.
3. Honzon Protocol (Stablecoin System)
- Mint aUSD (Acala’s USD-pegged stablecoin) by collateralizing assets like DOT.
- Uses CDPs (Collateralized Debt Positions) for stability.
👉 Explore Acala’s DeFi tools for seamless cross-chain transactions
ACA Tokenomics
| Metric | Details |
|---|---|
| Total Supply | 1 billion ACA (fixed) |
| Distribution | Team (20.25%), Community (49.76%) |
| Use Cases | Governance, fees, collateral |
| Burn Mechanism | Deflationary via liquidation fees |
Key Fact: ACA’s supply is fully vested by July 2027, with no new emissions unless governance approves.
Acala vs. Competitors
| Feature | Acala | Parallel Finance |
|---|---|---|
| TVL | $382M | $499M |
| Stablecoin | aUSD (native) | None |
| EVM Support | Yes | Limited |
Why Acala Stands Out:
– aUSD adoption could make it Polkadot’s primary stablecoin.
– Lower barriers for Ethereum developers via EVM.
Acala’s Roadmap & Partnerships
Upcoming Milestones
- Acala EVM rollout for broader dApp compatibility.
- Expanded aUSD integrations with projects like PolkaDex and Satori.
Key Investors
- Polychain Capital, Coinbase Ventures, and Pantera Capital back Acala’s vision.
FAQs About Acala
1. What is ACA used for?
ACA powers governance, pays gas fees, and acts as collateral for minting aUSD.
2. Can I stake ACA?
No—ACA has a fixed supply, but its deflationary burn mechanism adds value.
3. How does Acala’s EVM work?
It lets developers port Ethereum dApps to Acala with minimal changes.
4. Where can I buy ACA?
ACA is available on major exchanges like OKX with deep liquidity.
5. Is aUSD audited?
Yes, aUSD is backed by over-collateralized assets and regularly audited.
Final Thoughts
Acala’s interoperability, user-friendly design, and stablecoin ecosystem position it as a leader in Polkadot’s DeFi space. While competitors like Parallel Finance have higher TVL, Acala’s aUSD and EVM integrations offer unmatched growth potential.
👉 Start trading ACA on OKX with low fees and high security
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