The Acala Network is a smart contract platform designed to be the central hub of decentralized finance (DeFi) within the Polkadot ecosystem. It offers a suite of financial tools, including:
- Borrowing/Lending Platforms
- Automated Market Maker (AMM) DEX (Acala Swap)
- Stablecoin Protocol (aUSD)
- Liquidity Staking (Homa Protocol)
Built on Substrate, Acala enables cross-chain interoperability, supports multi-currency gas fees, and integrates an Ethereum Virtual Machine (EVM) for seamless dApp migration.
Key Features of Acala
- Polkadot Parachain: Leverages Polkadot’s scalability and security.
- Multi-Currency Gas Fees: Pay transaction fees in various tokens (e.g., DOT, ACA).
- Acala EVM: Enables Ethereum-compatible smart contracts.
- Native Token (ACA): Used for governance, staking, and fee payments.
👉 Discover how Acala revolutionizes DeFi
How Acala Works
1. Acala Swap
- Decentralized exchange (DEX) for Polkadot parachain assets.
- Supports cross-chain trading via AMM liquidity pools.
2. Homa Protocol (Liquid Staking)
- Stake DOT to receive LDOT (liquid staking derivative).
- Use LDOT in other DeFi apps (e.g., collateral for loans).
3. Honzon Stablecoin Protocol
- Mint aUSD (pegged to USD) using DOT or ACA as collateral.
- Stability maintained via collateralized debt positions (CDPs).
4. Governance
- ACA holders vote on proposals and elect council members.
ACA Tokenomics
| Metric | Details |
|------------------|----------------------------------|
| Total Supply | 1 billion ACA (fixed) |
| Use Cases | Governance, gas fees, collateral |
| Deflationary | Burns ACA from liquidation fees |
Supply Distribution:
- 49.76% to community (liquidity programs, ecosystem fund)
- 20.25% to founding team (vested until 2027)
- 18.33% to early backers
Acala vs. Competitors
| Feature | Acala | Parallel Finance |
|-------------------|---------------------------|---------------------------|
| TVL | $382M | $499M |
| Stablecoin | aUSD (native) | None |
| EVM Support | Yes | Limited |
Acala’s Edge:
- aUSD adoption could dominate Polkadot’s stablecoin market.
- EVM compatibility attracts Ethereum developers.
Acala Roadmap & Updates
2025 Priorities:
- Acala EVM Full Deployment
- Expand aUSD integrations (e.g., PolkaDex, Satori)
- Decentralize governance via community referendums
Recent Partnerships:
- Satori: Derivatives platform supporting aUSD/LDOT.
- Picasso & Equilibrium: Cross-chain DeFi collaborations.
FAQs About Acala
Q: What is ACA used for?
A: Governance, gas fees, collateral for aUSD, and trading on Acala Swap.
Q: Can I stake ACA for rewards?
A: No—ACA has a fixed supply, but its deflationary mechanism increases scarcity.
Q: How does Acala’s EVM work?
A: It lets developers deploy Ethereum dApps on Acala with minimal changes.
Q: Where to buy ACA?
A: ACA is available on OKX and other major exchanges.
Conclusion
Acala is poised to be Polkadot’s premier DeFi hub, combining cross-chain interoperability, EVM support, and a robust stablecoin ecosystem. With aUSD adoption and decentralized governance on the horizon, Acala offers a compelling case for long-term growth in the Polkadot ecosystem.
Ready to explore Acala? Dive into its DeFi tools today!