Acala Network: project overview, DOT token

What is the Acala Network? | Incrypted | In this Article:

What is Acala?

Funding

Acala Protocols

ACA token

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.

Acala.
Acala. Source: acala.network

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.

Same:

  • Provides collection and execution of smart contracts ;
  • stimulates nodes to track and transmit data to Polkadot ;
    • 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 .

    Funding (ICO)

    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.


    Acala Protocols

    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 ;

  • conduct business lending with predictable risk ;
  • to form even more transparent financial services .
  • The heart of Honzon is the aUSD stablecoin pegged to the dollar.

    Stablecoin Acala.

    dollar equivalent, blocking part of their crypto assets – be it DOT, BTC or ETH, as collateral. At the same time, they are required to pay interest to maintain the loan, but are not limited to a single token in the role of collateral, as is the case with USDT and DAI.

    In order to manage risks, Honzon protocol also implemented a set of mechanisms to maintain stability and balance in the event of sharp fluctuations in the price of the underlying collateral asset.

    The second protocol, Homa, was proposed by the Acala team as a solution to several fundamental problems in the community.

    Homa eases the costs of using assets for staking and reduces the risk of economic security so that people with an impressive amount of DOT do not have the opportunity to take control of the entire system if the volume of tokens is staked will fall below 50%.

    Instead of posting their DOTs on the Relay Chain Polkadot, the user will post them using the Homa protocol, receiving th instead of L-DOT (Liquid DOT). When a user wants to return his DOT tokens, he simply returns the LDOT to the protocol, immediately receiving DOT in return and a certain staking reward to his cryptocurrency wallet, avoiding the dreary for many 31 – daily period of token defrost.

    Polkadot parachains.

    Well, to allow users to exchange tokens and receive commissions for ensuring the liquidity of the protocol, the team has integrated their own DEX.

    In general it is very similar to other decentralized exchanges like Sushiswap, Uniswap and Pancakeswap.

    Acala DEX allows you to exchange any tokens between blockchains connected to Polkadot. Given the popularity of the latter, Acala’s DEX has a rich supply of cross-chain liquidity pools, allows instant exchange of tokens and does not require an order book, and liquidity providers receive incentives by providing tokens to liquidity pools.

    In addition, trading commissions here will be many times more pleasant in comparison with AMM DEX based on Ethereum and users will be able to pay for them in the equivalent of various cryptocurrencies without being tied to single coin.

    Парачейны Polkadot.

    ACA Token

    ACA’s total supply is 200 10 10 tokens, of which 49 173 11 ACA will be distributed as follows:

    • 50, 87% among the community members, of which 33% will be allocated as a reserve for auctions and liquidity programs, 11, 76% will go to the reserve fund, and another 5% will be allocated to the development of the ecosystem

    Стейблкоин Acala. 25, 25% of the stock will go into the pocket of the developers

  • 22, 34% reserved for early investors
    • the remainder of the ACA will be paid to the rest 12, 69% of investors


    Acala and Polkadot parachains

    Against the background of its direct competitors “inside” Polkadot, the Acala Network project became the first winner in the parachain auction at Polkadot.

    What are Polkadot parachains? Let us explain it to you! Read or watch our material from the “SimpleCrypt” section.

    During the event, users contributed more than $ 100, 61 million DOT tokens equivalent to $ 3.4 billion and blocked in favor of Acala more 32, 5 million DOT for $ 1, 34 billion for two years.

    Parachain auctions. Source: holdpolkadot.com

  • Initially, Acala kept pace with another promising project – Moonbeam. But, 15 November he managed to leave his rival far behind, although an official snapshot was taken 15 November, when the difference between them was 32 500 DOT in favor of Acala.

    Observing behind what is happening, the creator of Polkadot Gavin Wood said that the system of parachain auctions allows you to maintain competition among participating projects, so in the future users will see such “fierce races” more than once.

    In an effort to match its “progenitor” (Polkadot), Acala also acquired a “Kusama substitute” called Karura.

    It is an EVM-compliant, scalable network for the Acala project and a DeFi-optimized hub inside Kusama.

    Karura offers members staking, loans and lending, as well as its own stablecoin kUSD and DEX. Like aUSD, kUSD operates on a multi-tax basis and allows users to pay commissions in the most convenient crypto equivalent for them.

    DeFi-hub also favorably distinguished itself from its “congeners” on the blockchain, having won the first slot in the Kusama testnet auction and collected more 500 10 KSM tokens from or near the community 100 million dollars.



    Totals

    Acala Network has every chance of joining the ranks of key players in its segment, bridging the gap between the Ethereum and Polkadot blockchains.

    Taking into account the interest from large investors in the concept of a DeFi center for various With the projects inside Polkadot and the seven-mile development of the decentralized finance industry, Acala is capable of achieving great success and deservedly receives praise from the crypto community.

    In the future, the team intends to significantly expand its influence on the market and continue to delight the “parent” network and us with its new achievements.

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