Token Name and Symbol

 

• Token Name: Acala Token

• Symbol: ACA

Purpose

 

The ACA token is the native utility and governance token of the Acala network. Its primary functions are:

• Utility: Used to pay for transaction fees, stability fees, and penalty fees on the network.
• Governance: ACA holders can propose and vote on network upgrades, risk adjustments for the stablecoin (aUSD), and other key decisions.
• Contingency Asset: In an event of a significant price drop of a collateral asset, ACA can be diluted and sold to recapitalize the system, helping to maintain the stability of the aUSD stablecoin.
• Liquidity & Incentivization: A portion of the ACA token supply is used to incentivize participation in the network through staking, yield farming, and liquidity pools.

 

Who is behind the project

Acala was founded by the Acala Foundation, which was a collaboration between two teams from the Polkadot ecosystem: Laminar and Polkawallet. The co-founders are Ruitao Su, Bette Chen, and Fuyao Jiang. The project has also received significant backing from notable institutional investors in the blockchain space.

 

Partnerships

 

Acala has established a wide range of partnerships to expand its ecosystem and enhance interoperability. Key partners include:

• Polkadot & Kusama: As a parachain on both networks, Acala is fundamentally integrated into the Polkadot ecosystem.
• Other Parachains: Acala collaborates with other parachains to facilitate cross-chain communication and asset transfers using Polkadot’s Cross-Consensus Message Format (XCM).
• Security Firms: Partners with auditing firms for security and has an active bug bounty program on platforms like Immunefi.
• Ecosystem Projects: Works with various decentralized applications (dApps), including DEXs and DeFi protocols, to integrate aUSD and LDOT.

 

Security & Audits

Security is a core focus for Acala, which leverages multiple layers of protection:

• Shared Security: As a Polkadot parachain, Acala benefits from the robust security model of the Polkadot Relay Chain and its Nominated Proof-of-Stake (NPoS) consensus mechanism.
• External Audits: The Acala team regularly commissions audits of its codebase and smart contracts from reputable third-party security firms, such as SR Labs and PeckShield.
• Bug Bounty Program: Acala maintains an ongoing bug bounty program to incentivize white-hat hackers to identify and report vulnerabilities in exchange for rewards.
• On-Chain Governance: The community-driven governance system allows for a swift response to any security concerns by enabling the community to propose and vote on changes.

 

Potential

 

Acala’s potential is closely tied to the growth of the Polkadot ecosystem and the broader multichain landscape. Its key potential lies in:

• Becoming the DeFi Hub: Acala aims to be the central liquidity and financial hub for Polkadot, connecting its various parachains and enabling cross-chain DeFi activities.
• Growing AUSD Adoption: The success of the Acala network is directly linked to the adoption of its stablecoin, aUSD, as the default stable currency for the Polkadot ecosystem.
• Liquid Staking Dominance: As more DOT is staked through its Homa protocol, Acala can become the leading provider of liquid staking on Polkadot, unlocking significant capital for use in DeFi.
• Hybrid Finance (HyFi): The project aims to bridge traditional finance with decentralized finance, potentially integrating real-world assets into its ecosystem.

 

Community

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Resources