Acala network cryptocurrency, all in one project in Defi Polkadot

One of the projects listed on Polkaproject is the Acala network, when you visit the Acala site, you will read Acala the Defi hub of Polkadot.

Unfortunately, the Acala token called ACA at the time of writing cannot be traced via Coinmarketcap. It only shows some information about Acala. But we will try to learn more about the Acala network, its stable coin concept in the Polkadot network.

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Acala network explained

Acala is the all-in-one Defi hub in Polkadot. The Acala platform is a Defi project located on the Polkadot network, the Acala platform is also compatible with Ethereum.

It is a platform for financial applications via smart contracts or built-in protocols with out-of-the-box cross-chain capabilities and strong security.

Acala is one of the stable currencies where 1 Acala Dollar is equal to 1 USD, using the ticker code aUSD. So why isn’t Acala’s price tracked on Coinmarketcap? One reason included because it’s a pegged value stablecoin. Even the Polkaproject listing does not display price changes. But it still questionable reason, the real still debated.

Citing from Acala’s whitepaper, this is a decentralized financial consortium that provides a set of protocols, such as the stablecoin protocol serves as the building blocks of Defi Polkadot. This is the first financial consortium in the Polkadot network.

Acala platform goal

Some of the objectives of the Acala network include the following:

• Creating a stable currency with low fees, and unlimited transfers for all blockchain connected in a network.
• Collateral can come from the Polkadot network and other networks connected to reach a higher roof.
• Implementing security with Polkadot.
• Decentralized through its consortium arrangements and token release model.
• Become a stablecoin network that can adjust fee schedules and maintain security.
• Become future proof without disrupting the on-chain governance network.
• As an open-source building in Defi.

Acala network token

Acala uses the Acala Dollar Stablecoin (ticker: aUSD) is a multi-collateral supported cryptocurrency. It has value relatively stable against the US Dollar where 1 aUSD equals 1USD.

aUSD can be created with assets such as Bitcoin, Ethereum blockchain connected to the Polkadot network as collateral.

All crypto assets can generate aUSD tokens by creating a Collateralized Debt Position (CDP) through Honzon protocol in the Acala network.

ACA token utility and governance

Acala’s native token is ACA. ACA tokens will be printed on the main net launch. Which will be stored in the ACA Reserve Pool. Then it will be distributed to ACALA Foundations, Investment Partner Seeds, IPO Participants as Rewards, and the rest is sold to the public.

ACA tokens have three main functions in the ACALA Network:

• The ACA Token Utility Network Token functions to pay network transaction fees, stability costs (USD loan interest rate), and penalty fees in case of liquidation.
• Network Governance, is obtained from the ACA token holders who have the right to propose network enhancement, and adjustment of risk parameters (such as Stability costs, Debt Ceiling, Liquidation Ratio, and Liquidation Penalty), which will be approved or rejected by On-chain General Council elected.
• Contingency solution serves to protect risks such as the sudden drop in the price of the collateral asset resulting in less guaranteed CDP, the ACA token will be automatically diluted and sold on the market for system recapitalization.

Acala network founder

The Acala platform was discovered and developed by a team that contributes to Acala’s products, the founders of Acala are Ruitao Su, Bette Chen, Fuyao Jiang, and Bryan Chen.

Ruitao Su has the experience and is the co-founder and CEO of Laminar altogether with Bryan Chen and Bette Chen. Meanwhile, Fuyao Jiang is the founder of Polkawallet.

Acala network team members are Robin Whitney as Community/Growth Manager, Kenneth as Advisor, Kelly Yang as Public Relationship, Shawn Yang as Senior Software Engineer, Joey He also as Senior Test Engineer, Dan Reecer as VP Growth, Jianjiang Wang as Chief Technology Officer, Yuzhu Liu as Head of Collaborations, Ermal Kaleci as Senior Software Engineer, Antonia Chen as Chief Economist, Jack Platts as Advisor, Hao Qiu as Full-stack Engineer, Shaun Wang, Senior Software Engineer, Ashley Tyson as Advisor, Chloe as UI Designer, and Hutch as Advisor/Contributor.

Three Acala Network evolution

The Acala network underwent three evolutions called the Acala network trilogy:

• Mandala Test Network: on this network like a risk-free playground, users, and developers can freely test the functionality of the Acala drive.
• Karura Network: In this network Acala released is still experimental and has not been audited and will join the Kusama network as a para chain. Here the KSM token can be used as collateral for the kaUSD.
• Acala Mainnet: this is the main network that will be connected to the Polkadot network once launched.

Mandala test network

This is an experimental network, users can for free test tokens or various functions for Acala user Dapp, Mobile app, console user interface, telemetry, and riot faucet.

For eligible use, the Mandala test network requires the Polkadot js extension to be installed in the browser, available for Chrome and Firefox.

At the testing stage of this function, the Mandala test network can use the available token options, namely: ACA, aUSD, DOT, and BTC. ACA is a token for fees, rewards, and others, aUSD is Acala’s stablecoin, DOT is a token on the Polkadot network and BTC is Bitcoin cryptocurrency.

Karura network Acala

Karura network can be said to be the sister of Acala, which Karura network will run parallel with Acala in Polkadot network.

Besides, if the Kusuma network is connected to Polkadot, Karura and Acala will also become fully interoperable.

Karura network has a token with the ticker symbol KAR, this is a token powered by the Defi hub of the Kusuma network. KAR tokens have a total maximum supply of 100 million KAR with an inflation rate of 0%.

All KAR tokens are distributed on the genesis network with 60.87% for communities, 10% for founding teams, 10.08% for backers, and 18.33% for early backers.

Acala Mainnet

Acala Mainnet was launched in January 2020 as a Defi consortium for infrastructure in the Polkadot network.

Then February launched the Ethereum Virtual Machine (EVM) on the Polkadot network on the Substrate framework for asset interoperability facilities on the Ethereum network.

Acala network roadmap

2019 Q3 Acala Incorporated and development kick-off has done. 2019 Q4 Whitepaper and economic model and Testnet candidate first launch have done.  Q1 2020, Web3 Foundation grant, Release decentralized sovereign Wealth fund (dSWF) whitepaper, Testnet candidate second launch with stablecoin and Dex. Q2 2020, staking derivative LDOT launch, Web3 Foundation grant completion. Q3 2020, implement EVM and smart contract, launch Karura campaign, security audit, and Testnet candidate fifth launch.

2021 Q1, launch Acala EVM Testnet, security audit, Parachain candidate second launch on Polkadot Testnet Rococo to test crowd loan and Parachain launch, economic audit, and Testnet candidate sixth launch.

Upcoming roadmap, Karura Parachain auction, Karura Mainnet Genesis, enable Karura council governance, enable stablecoin, staking derivative and DeX plus respective liquidity mining, enable cross-chain Bitcoin’s asset, launch perpetual KSM, full EVM smart contract support, launch Parachain bonding derivative PKSM, enable liquid democracy, enable dSWF and DAO 3.0.

Acala network Parachain auction

To launch Acala on the Polkadot network via the auction step. To participate in the Acala Parachain Launch Offering on Polkadot auction you can only use DOT tokens.

The DOT token must also be transferable, for this DOT staking awaits unstake until the end of the unbounding period.

DOT deposited will be locked until the end of the Parachain hiring if Acala wins the auction. If it doesn’t win it will be refunded at the end of the failed auction.

The length of time to lock the DOT is the same as the Parachain lease period. For example, Acala rents a Parachain slot for 12 months, then the DOT will be locked for 12 months + crowdfund time before the auction ends.

The longer the lease period, the more stable and predictable the project will be because after the lease ends, the project will need to bid for a new slot. Otherwise, it will lose security from Polkadot.

Acala network ICO

Following Acala’s ICO through Cryptorank.io, not much information was obtained, fundraising goals were not set, interest rates were not recorded. For pre-sale Acala, the network has a starting price of $ 0.016. with a minimum of 30 DOT and a maximum of 50 DOT. Pre-sale coming soon but date not set.

While at Icodrops, the ICO period has ended, the registration has closed with the end of the token sale, on April 16, 2021, with total fundraising received $ 31,500,000.

Acala ICO information through Icodrops is more detailed with an ACA ticker, ETH fundraising goals, a minimum personal cap of 30 DOT, and a maximum stamp of 50 DOT, also accepting BTC. ICO rating drops score of very high interest.

Acala network exchange

Until now, I have not found clear information about the Acala network exchange, to get ACA tokens, possibly through the Parachain auction process. However, even this does not provide a fully detailed answer.

Someone simply replied on the Reddit community that it was via crowdlending. Of which the Acala platform one of its services is for lending.

How to buy Acala crypto?

Maybe right now the only way to buy Acala is to have crypto that supports it on the Acala network. The crypto is then used to create aUSD token with a Collateralized Debt Position (CDP). It which is a stablecoin on the Acala network.

Where to buy Acala crypto?

The Acala network is associated with Polkadot, some people say to own Acala tokens is through DOT staking. Where DOT is a native token in the Polkadot network. Someone else said in a bound manner, not through staking, because bounding does not receive rewards while staking receives.

Acala network crypto price

Acala is shown as an untraceable project on the Coinmarkecap site. So there is no information regarding prices, market capitalization, total supply, and chart information.

But at Cryptorank.io, there is little information about Acala circulating ACA tokens. That have reached ACA 47,100,000 (4.71%) with a total supply: ACA 1,000,000,000.

Information regarding prices is also not available on the charting platform. So the conclusion is that the ACA token price is still untracked at the time of writing.

Acala network price prediction

Due to the unavailability of price information which is still in untracked status. The Acala network price prediction is also not available.

Because most forecasting sites will use historical price data from the past. Then use certain formulas with algorithmic calculations to produce a crypto asset price prediction.

Final thought

The Acala platform offers different services from other platforms, which makes it unique.

It seems that the target market of this platform is advanced investors. Because the user interface of how to use the service is not easy for novice investors to do.

This, of course, will still be questioned because it is quite difficult to obtain transparency of information.

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