What is the Acala Network? | Incrypted | In this Article:
What is Acala?
Acala and Polkadot parachains
Acala Network running in 2021, is the first of its kind DeFi consortium formed by two teams of active participants in the Polkadot ecosystem – Laminar and Polkawallet.
The first created an open financial platform that provides margin trading and trading in synthetic assets, and Polkawallet became the ultimate software wallet with which users carry out cross-chain asset management through inter-network messaging (XCMP). The latter allows transactions initiated in mobile wallets to interact between different parachains.
Acala’s main mission is to become a universal Polkadot DeFi hub that allows you to quickly and easily use, or create decentralized offers, thereby increasing the efficiency of trading and saving precious time for network members.
In other words, Acala is conceptually very similar to Ethereum, except that it only targets DeFi projects, seeking to accelerate their scaling. Acala should become the DeFi hub for the entire Polkadot ecosystem. And at the moment, this goal has been practically achieved. All that remains is to wait for the main network to start.
The ACA service token “feeds” the Acala Network.
- gives the community the ability to vote and contribute development protocol ;
- helps to automatically adjust risk parameters – interest rates and collateral ratio ;
- allows teams to deploy new n Allets Substrate by staking ACA on the Acala network .
The project managed to attract the attention of many investors, led by with such giants of the cryptocurrency market as Pantera Capital and Polychain and collect more than $ 66, 7 million in four rounds of funding.
Most of the funds – 66 million dollars was received by the team during the initial coin offering (ICO), with an additional $ 7.3 million in the Series A funding round.
The project works on two protocols – Honzon and Homa, cases which make it even more attractive not only in the eyes of developers of decentralized applications, but also ordinary users.
Honzon is a cross-chain protocol and allows:
Create a stable currency to make transactions cheaper for all chains in the network ;