In the blockchain space, there exists a unique and close connection between Acala (ACA) and Polkadot (DOT). Acala, as a parachain focused on Decentralized Finance (DeFi) within the Polkadot ecosystem, forms a mutually dependent relationship with Polkadot, which serves as the foundation for a multi-chain heterogeneous network.
The Acala network utilizes its native token ACA for network governance and various DeFi functions, such as the stablecoin aUSD and liquid staking derivatives like LDOT. Meanwhile, DOT plays multiple roles in the Polkadot ecosystem, serving not only for network governance and staking to ensure security but also as the core for cross-chain operations.
From a technical perspective, Acala is built on Substrate and integrates an enhanced version of the Ethereum Virtual Machine (EVM+), which enables it to support Ethereum smart contracts while maintaining compatibility with Polkadot. Acala's operation relies on the underlying security provided by Polkadot, while its innovative parachain architecture achieves high scalability and interoperability.
In terms of value flow, a unique ecosystem has formed between Acala and Polkadot. Acala's treasury holds DOT and earns profits through staking, which are then used to buy back ACA and distribute it to network participants. This mechanism creates a value transfer channel from DOT to ACA, further strengthening the economic ties between the two networks.
Overall, DOT, as the cornerstone of the Polkadot network, provides the infrastructure for security and cross-chain communication for the entire ecosystem. ACA, on this foundation, offers users a rich array of Decentralized Finance services and functions. The two form a symbiotic relationship through technological integration and economic incentives, jointly promoting the innovative application of blockchain technology in the financial sector.
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In the blockchain space, there exists a unique and close connection between Acala (ACA) and Polkadot (DOT). Acala, as a parachain focused on Decentralized Finance (DeFi) within the Polkadot ecosystem, forms a mutually dependent relationship with Polkadot, which serves as the foundation for a multi-chain heterogeneous network.
The Acala network utilizes its native token ACA for network governance and various DeFi functions, such as the stablecoin aUSD and liquid staking derivatives like LDOT. Meanwhile, DOT plays multiple roles in the Polkadot ecosystem, serving not only for network governance and staking to ensure security but also as the core for cross-chain operations.
From a technical perspective, Acala is built on Substrate and integrates an enhanced version of the Ethereum Virtual Machine (EVM+), which enables it to support Ethereum smart contracts while maintaining compatibility with Polkadot. Acala's operation relies on the underlying security provided by Polkadot, while its innovative parachain architecture achieves high scalability and interoperability.
In terms of value flow, a unique ecosystem has formed between Acala and Polkadot. Acala's treasury holds DOT and earns profits through staking, which are then used to buy back ACA and distribute it to network participants. This mechanism creates a value transfer channel from DOT to ACA, further strengthening the economic ties between the two networks.
Overall, DOT, as the cornerstone of the Polkadot network, provides the infrastructure for security and cross-chain communication for the entire ecosystem. ACA, on this foundation, offers users a rich array of Decentralized Finance services and functions. The two form a symbiotic relationship through technological integration and economic incentives, jointly promoting the innovative application of blockchain technology in the financial sector.