Acala (ACA)

Decentralized Finance (DeFi)

Acala is a DeFi platform built on Polkadot that lets users stake, swap, borrow, lend, and earn with low transaction fees. It supports a stablecoin called aUSD, which is pegged to the US dollar and backed by multiple types of crypto assets.

Cross-Chain Compatibility

Acala works across different blockchains, allowing assets like DOT, ETH, and BTC to be used as collateral. This makes it easier for users to move and use tokens between Polkadot and other networks.

Smart Contracts and Development

Acala is Ethereum-compatible and built on Substrate, enabling developers to create customizable decentralized apps (DApps) with fast transaction speeds and low fees.

Liquidity and Trading

The platform includes an automated market maker (AMM) decentralized exchange for seamless asset trading within its ecosystem.

Governance and Network Upgrades

Acala’s native token, ACA, is used for paying fees, voting on network changes, and managing risk within the platform.

Use in Real-World Finance

Acala aims to bridge decentralized finance with traditional finance by enabling hybrid financial services and supporting new financial products on blockchain.

Pros of Acala

• Cross-chain DeFi Hub: Acala is built on Polkadot and supports multiple blockchains, allowing users to trade and interact with assets across different networks.
• Ethereum Compatibility: It supports Ethereum smart contracts, making it easier for developers familiar with Ethereum to build on Acala.
• Built-in DeFi Products: Includes a stablecoin (aUSD), decentralized exchange (AcalaSwap), and liquid staking tokens like liquid DOT (LDOT).
• Low Fees and Scalability: Uses Polkadot’s nominated proof-of-stake consensus, which offers lower gas fees and better scalability compared to some other blockchains.
• Governance and Utility Token: ACA token is used for staking, paying fees, and voting on network decisions, giving holders influence over the platform’s future.
• Strong Ecosystem Support: Backed by Polkadot parachain technology and partnerships with projects like Polkawallet and Laminar.

Cons of Acala

• Competition: Faces strong competition from established DeFi platforms like Ethereum, which has a larger user base and developer community.
• Market Volatility: ACA token price can be volatile, reflecting broader crypto market trends.
• Complexity for New Users: Cross-chain and DeFi concepts may be challenging for beginners to fully understand and use.
• Still Growing: While promising, Acala is still developing its ecosystem and user base compared to more mature platforms.

For more details, visit the official site: acala.network

Founders of Acala

The founders of Acala are Bette Chen, Ruitao Su, Fuyao Jiang, Antonia Chen, and Bryan Chen. They come from backgrounds in blockchain technology, finance, and software engineering, and together they created Acala as a decentralized finance hub on the Polkadot network.

Major Investors in Acala

• Venture Capital Firms: Polychain Capital and Pantera Capital led early funding rounds including Seed and Series A.
• Crypto Investment Funds: 1confirmation, Arrington XRP Capital, ParaFi Capital, Coinfund, Spartan Capital, and Andromeda Capital have invested in Acala.
• Blockchain Venture Capital: Blockchain Ventures (CVC) and Block Infinity are among the investors.
• Crowdloan Contributors: Acala raised over 32 million DOT (worth about $1.28 billion) from nearly 25,000 contributors during the Polkadot parachain auction.
• Other Investors: KR1 PLC invested in Acala during seed rounds, and Altonomy is also listed among investors.

These investors include a mix of institutional venture capital, crypto-focused funds, and community supporters through crowdloans.

Halal Status of Acala

• Yes, Acala is generally considered halal by some Islamic finance screening platforms because it operates as a decentralized finance (DeFi) platform focused on asset exchange, staking, and liquidity without inherently involving interest (riba) or prohibited activities.
• However, no official Sharia certification currently exists for Acala, and opinions may vary among scholars due to the complexity of DeFi and lending features.
• The platform’s core functions like decentralized stablecoins, staking, and governance align with permissible activities, but some caution is advised as lending and borrowing in DeFi can involve interest, which is not halal.
• Ultimately, it is recommended for Muslim investors to consult with a qualified Sharia expert for personal guidance.

For more details, you can visit Acala’s official website: https://acala.network/