Overview of Acala Network
Acala stands as a pioneering liquid staking protocol within the Polkadot ecosystem, renowned for its multi-collateral-backed stablecoins and decentralized financial infrastructure. As the longest-running liquid staking token (LST) protocol, Acala enables users to stake DOT tokens while maintaining liquidity through LDOT, its native LST.
With the recent Exodus upgrade, Acala is positioning itself as the "liquidity layer of Web3 finance", expanding its ecosystem and enhancing the utility of its native token, ACA.
Core Components of Acala
1. Native Token (ACA)
- Utility: Serves as the reserve asset for stablecoins and governs network decisions.
- Functions: Staking, governance voting, and fee payments.
2. Acala Dollar (aUSD) & aSEED Transition
- aUSD: A decentralized stablecoin pegged to the USD, backed by collateral like DOT, LDOT, and ACA.
- aSEED: The upgraded version of aUSD, offering holders options to exit or participate in Acala’s growth.
3. Reserve Assets
- Primary: DOT, LDOT, ACA.
- Cross-chain: BTC, ETH, and other interoperable assets.
Key Features of Acala
1. Liquid Staking
- Convert DOT to LDOT to earn staking rewards while retaining liquidity.
- APY: View real-time yields and validator performance.
👉 Learn how liquid staking works
2. Swap & Bridge
- Swap: Trade tokens seamlessly (e.g., DOT to ACA).
- Bridge: Transfer assets across blockchains (Polkadot to Ethereum).
3. Governance
- Vote on proposals using ACA tokens.
- Track council decisions and policy changes.
4. Euphrates dApp
- Amplify staking rewards by providing liquidity (currently on Karura testnet).
Step-by-Step Guide to Using Acala
1. Staking ACA
- Navigate to the Staking tab.
- Lock ACA to secure the network and claim rewards.
- Monitor APY and loyalty bonuses.
2. Liquid Staking DOT
- Deposit DOT to mint LDOT.
- Use LDOT in DeFi apps while earning staking rewards.
3. Bridging Assets
- Select source/destination chains (e.g., Polkadot → Ethereum).
- Choose assets and amounts.
- Confirm the transaction.
FAQs
Q1: What is the difference between aUSD and aSEED?
A: aUSD is Acala’s stablecoin, while aSEED is its upgraded version, offering holders participation in ecosystem growth.
Q2: How does liquid staking work?
A: Stake DOT to receive LDOT, which remains tradable while earning staking rewards.
Q3: Can I stake assets other than DOT?
A: Yes! ACA and cross-chain assets like BTC/ETH can be staked or used as collateral.
Q4: What is Euphrates?
A: A liquidity dApp to boost staking rewards (currently in testnet phase).
Why Choose Acala?
- Trustless Design: Multi-collateral backing ensures stability.
- Interoperability: Bridges connect Polkadot to Ethereum, Bitcoin, and more.
- Governance: Decentralized voting for protocol upgrades.
For a deep dive into Acala’s features, explore their official portal.
### Keywords:
- Acala Network
- Liquid Staking (LDOT)
- ACA token
- Polkadot ecosystem
- aUSD stablecoin
- Cross-chain bridging
- Decentralized governance