What is Acala Token (ACA)?

Deep Dive

1. Purpose & Value Proposition

Acala aims to unify decentralized (DeFi) and centralized finance (CeFi) by offering a “Universal Asset Hub” on Polkadot. It solves fragmented liquidity across blockchains through:
- Liquid Staking: Convert staked assets like DOT into tradable tokens (e.g., LDOT) usable in DeFi
- Stablecoin Platform: Mint aUSD, an overcollateralized stablecoin, using multichain assets
- Cross-Chain Swaps: AMM DEX supporting Polkadot parachains and external chains like Ethereum

2. Technology & Architecture

Built using Substrate (Polkadot’s framework), Acala combines:
- EVM Compatibility: Run Ethereum dApps with lower fees and Polkadot’s security
- Oracle Feeds: Price data for collateralized loans and stablecoin operations
- Modular Design: Customizable financial primitives (e.g., lending, derivatives) as building blocks

3. Tokenomics & Governance

ACA’s fixed supply (1.6B) fuels three core functions:
- Network Fees: Pay for transactions and smart contract execution
- Staking: Secure the network and earn rewards via Homa Protocol
- Governance: Vote on treasury allocations, protocol upgrades, and validator elections (Acala Network)

Conclusion

ACA anchors a Polkadot-native DeFi ecosystem blending staking, swaps, and stablecoins while empowering community-led governance. As cross-chain interoperability becomes critical, can Acala’s hybrid model position it as the default liquidity layer for web3? Explore its EVM integration to gauge developer traction.