Is ACA a good investment?

ACA coin

Some of the key concepts about the ACA token and its ramifications have been presented in this article. However, it is significant to highlight that before to making investing selections, investors should bear the following in mind:

Interoperability and compatibility with other chains are two of the major obstacles facing projects on a different blockchain. By adding EVM, Acala has demonstrated its potential to scale and to be compatible with Ethereum. This will facilitate the project’s future development and help it connect Polkadot and Ethereum.

The project has acquired a lot of support from the community even before the Parachain auction, demonstrating that there are many people who are backing it. obtaining a position of authority on

MakerDAO’s design and the multi-collateral Type CBD that Acala Network offers are quite comparable. However, a wide range of digital assets from other blockchains and ecosystems, like ETH and BTC, are also supported, thus the assets are not just confined to the DOT’s native tokens. When numerous projects operate on their own blockchains in the future, this method will hasten the use cases of the Acala Network even more.

Similar Project

Acala’s operating design is comparable to MakerDAO, a project that makes it possible to create DAI, one of the most important stablecoins.

What is Acala?

Acala Network is a layer-1 smart contract platform with built-in liquidity that is scalable, Ethereum compatible, and tailored for DeFi. It is ideal for developers who desire complete control over their decentralised apps because it has a comprehensive suite of user-friendly financial applications that have been assembled into a single, strong offering from beginning to end.

Acala provides interoperable cross-chain capabilities, strong security protocols, and is powered by Substrate and Ethereum compatible. It may host financial apps on its decentralised network and turn into a DeFi Hub of the Polkadot ecosystem.

Decentralized finance (DeFi) platform Acala Network was created for the Polkadot ecosystem. It is designed to host a variety of financial applications that make use of interoperable cross-chain capability, smart contract technology, and strong security protocols.

Acala’s apps can retain interoperability between Polkadot and Ethereum because it is also Ethereum compliant. The Acala Network operates as a coin chain on the Polkadot Relay, similar to many independent blockchains built using the Substrate blockchain development platform.

Acala Network provides several financial products, such as:

via the Honzon protocol, a multilateral stablecoin (aUSD) backed by digital assets.

Using the Homa tokenized staking liquidity protocol, an unstable staking derivative (L-DOT).

a decentralised automated market maker (AMM) exchange (DEX).

Acala Network’s ACA token uses!

The user can pay these various platform fees in one USD, which will then be automatically converted to ACA using the protocol’s built-in exchange mechanism. The ACA is permanently withdrawn from the token supply after being received as payment for platform fees, making the asset deflationary. ACA is likewise destroyed when the platform cleans up.

The ACA allows multiple applications and governance mechanisms within the larger Acala ecosystem as the Acala Network’s local presence. When using Honzon, network transaction costs, stabilisation fees (which serve as interest on USD loans) and penalty fees upon liquidation can all be paid using the ACA.

How to buy ACA coin and on which exchange?

Some cryptocurrency exchanges, including Binance, OKX, Bybit, Mandala Exchange, Bitget, etc., list and allow purchases of ACA coin. However, it is important to confirm if the exchange and the cryptocurrency project are “TRUSTED” before making an investment. Investors should pay close attention to this topic.

At the time of writing on February 24, 2022, the cost of 1 ACA coin is around $0.84. (the price can change instantly).

Attention: The information in this page is just intended to provide general information. It is not financial guidance.

How does Acala work?

Acala will be able to host the Homa liquidity staking protocol and the Honzon stablecoin generation process on the Polkadot parachain thanks to the sophisticated Polkadot’s Substrate infrastructure. To mint its stablecoin, the network also accepts other wrapped assets like renBTC as collateral (aUSD). This section will go into detail about each network component.

Parachain Crowdloans

On the Polkadot network, Acala will debut with a Crowdloan to compete for a parachain lease. In order to assist the initiative, bidders can deposit their DOT tokens into the auction, and if they are successful, they will receive a proportionate reward.

Honzon Protocol

The Honzon protocol was developed to simplify things for those within the crypto community and beyond. The protocol will be able to accept collateral assets from many blockchains by developing a stablecoin that is simple to use and is backed by Collateralized Debt Positions (CDPs).

The Acala stablecoin, such as aUSD, is tied to the US dollar at a 1:1 ratio; this network’s architecture will allow cryptocurrency users to withdraw aUSD by putting money into the network. However, customers are obligated to pay interest on every loan they take out.

By combining Chainlink with Acala, which enables the maintenance and risk-free use of decentralised price data sources, efficiency will be significantly boosted.

Homa Protocol

Homa Protocol is built with the intention of generating liquidity from locked assets on the Acala Network. Any assets that are locked can be used in traditional yield-farming to generate interest. Users can engage in Yield Farming and use the locked assets for other purposes thanks to Homa Protocol, nevertheless.

An L-token will be given back for any locked items. For instance, when you deposit DOT tokens, you will receive L-DOT in return, which may be used for a variety of things, such minting USD to provide loans to borrowers as collateral.

EVM Compatibility

Developers will be able to produce Solidity applications and produce assets that are similar to ERC20 tokens using the Acala system. Acala is initially compatible with all cross-chain transactions, including those using renBTC or aUSD;

For Polkadot additions like oracles that give price feeds, each on-chain activity within the EVM will be translated into Substrate code so interactions can happen easily between chains without middlemen.

Acala Stablecoin

The expansion of the scaling solution and interoperability with various networks and ecosystems are the primary goals of the Acala stablecoin. Acala’s stablecoin (aUSD), which is supported by the Polkadot network and Substrate technology, is designed to offer special features including high security, cross-chain functionality, and multi-collateral backing.

What is ACA token?

The Acala Network’s native token, ACA, is useful for a number of things, including:

For native transactions and smart contracts, ACA can be utilised as a network utility token. It can also be used to stake activities on the network such as collator and oracle.

Holders of ACA will be able to vote in the election of Council members, the Treasury Governance, network upgrades, and other network management issues.

How to buy ACA token

By locking up your DOT tokens and receiving ACA as payment, you can take part in the Acala Crowdloan. All qualified allocations under the ACA may be locked for two years.

How to mine ACA token

Updating…

How to store ACA token

When ACA becomes a marketable token, you can store it on Coin98 Wallet in just a few easy steps.

Roadmaps and Updates

This year’s major changes to Acala are mostly complete. The introduction of Acala, which is the following significant event, is anticipated to take place by the end of this year.

Team, Investors, and Partners

Team

The Acala founding team has expertise in the blockchain and IT sectors. Their long-term goal is to develop Acala into a project that is exactly like the others in the Polkadot ecosystem.

Investors

Numerous respectable investors, such as Parafi Capital, Polychain, and Arrington XRP Capital, are funding Acala.

aca investor 1636698405497
Polychain and Parafi invested in Acala Network

Partners

To hasten the network’s development, Acala has collaborated with numerous initiatives in a range of disciplines.

On the website Coin98 Markets, customers may examine complete information about a Token Metric from any project and receive updates on real-time prices. You may specifically reach a project’s home page or community page, or you can filter the currencies and tokens by factors like market cap, trading volume, etc.

However, the ACA coin is not yet tradable; we will update as soon as it is.

ACA Token Metrics

Name of Token: ACA Token
Acronym: ACA
Polka Dot Blockchain

Token Standard: Revisions

Contract: Revisions

Utility and governance tokens

Supply Total: Refreshing…

Updating: Circulating Supply

Name of Token: ACA Token
Acronym: ACA
Polka Dot Blockchain

Token Standard: Revisions

Contract: Revisions

Utility and governance tokens

Supply Total: Refreshing…

Updating: Circulating Supply

Prize: 34%
29.13% of investors are strategic
Team: 20.25%

11.62% reserved

Environment: 5%

ACA Token Release Schedule

Acala recently held an ICO event in September 2021, during which more than 26,000 participants from all across the world raised more than $61M.

Additionally, the project raised $1.4M in the Seed Round prior to the ICO and $7M in Series A through the sale of simple agreement for future tokens (SAFT).

Conclusion

I hope you have learned everything there is to know about the ACA, including its benefits and salient points, from this article.