What is Acala (ACA)? How To Buy ACA Token In India?

What is Acala (ACA)?

Acala network is a DeFi smart contract platform and the liquidity hub for Polkadot. It is a cross-chain protocol specifically designed to solve blockchain’s stability and liquidity issues. The platform is secured by Polkadot’s shared security layer, Relay Chain. 

Acala network offers a suite of financial primitives for DeFi applications which includes multi-collateralized stablecoin (aUSD), trustless DOT Liquid staking (LDOT), and Automated Market Maker Decentralized Exchange (AMMDEX).

The network has its native token, ACA, which is used for paying micro gas fees, stability fees (interest rate on aUSD loan), penalty fees (in case of liquidation), and for voting network changes and development. Acala is a stable forkless network with an inbuilt EVM, the Acala Ethereum Virtual Machine, to assist the development of decentralized applications and mint assets.

Who are the Founders of Acala?

Acala network was founded by a team of developers, Ruitao Su, Bette Chen, Bryan Chen, and Antonia Chen, with the idea of building a stablecoin. Ruitao Su, Bette Chen, and Bryan Chen are based in Auckland, New Zealand, and founded Laminar together. During the Substrate Hackathon hosted by PolkaWorld in China, they met Fuyao Jiang, Founder of PolkaWallet, which marked the start of the Acala network.

How does Acala work?

Acala network consists of Acala Dollar, AcalaSwap, AMM decentralized exchange, Open Oracle Gateway, and two decentralized protocols- Honzon Stablecoin Protocol and the Homa Tokenized Staking Liquidity Protocol, which provide stability and liquidity on the Polkadot network.

• Hozon Protocol: Acala USD(aUSD) uses an over-collateralized debt position(CDP) system where each aUSD is backed by a crypto asset and pegged against the US dollar. When a user deposits the collateral, native DOT, or bridged assets BTC or ETH, a CDP is opened, which can not be closed until the protocol receives stability fee and aUSD debt back from the depositor.
• Homa Protocol: Acala network has Homa Protocol to establish a decentralized staking pool where users can lock their DOTs to earn staking yield and obtain L-DOTs which are liquid and tradable across all Polkadot connected chains. The Protocol is responsible for managing locked assets, participation in staking, execution of algorithmically adjusted staking strategies, and managing rewards and penalties.

What makes ACA Unique-Use Cases?

• Acala blockchain features forkless upgrades, enabling developers to upgrade the chain to serve new requirements continuously.
• Acala network allows users to stake their DOTs and receive liquid DOTs in return, which can be used for trading or other purposes without unstaking.
•  The ACA is a deflationary token; it is burned and permanently removed from the network supply after receiving the platform fee.
• ACA token holders get voting rights to participate in development of the network as it is also a governance token.
• Acala’s Open Oracle Gateway allows leading projects to be deployed on the Acala network to create reliable, decentralized oracle infrastructure for the DeFi hub and Dapps on Acala, Polkadot, Kasuma, etc.

Acala (ACA) Price Analysis

Source: TradingView

• Acala token has been on a strong downtrend all through the bear market of 2022 and even now, in 2023 too.
• While the broader market has more or less recovered since the beginning of 2023, Acala has shown no such resolve.
• From a technical point of view, Acala currently has an oversold Relative Strength Index value of nearly 24 as of writing, so a minor pullback rally may occur from current levels.
• However, any long-term sustained recovery and a rally seems unlikely unless Acala price breaches $0.175.
• The token has even suffered a death cross of the 50 and 200-day moving averages which would add additional bearish pressures on the token.
• Acala price is down over 98% since its listing highs and doesn’t seem very likely to be able to regain its old levels any time soon.

How to Buy ACA Token in India?

To buy Acala Token in India, just follow the below-mentioned steps:

• Download the CoinDCX App on your Smartphone
• Enter the details required for registration.
• Complete KYC
• After your profile is verified, fund your wallet and buy an ACA