Acala is Polkadot's ecological project, which aims to build DeFi's underlying infrastructure framework. With a strong team of investors and abundant funds, Acala has a good chance of winning the first round of slot auction, which gives Polkadot a competitive advantage in its current ecosystem.

Acala's core vision is to be an indispensable infrastructure for the Polkadot DeFi ecosystem. It builds a complete decentralized financial application for users and a series of DeFi components out of the box for developers to build a complete Polkadot DeFi ecosystem.

Polkadot is a platform that allows different blockchain networks to transfer messages, data, and value in a trust-free manner, while simultaneously sharing unique functionality and security for these different blockchain networks, as well as providing decentralized trust for cross-chain transactions. Polkadot uses a consensus mechanism called NPoS(Convention Proof-of-Stake), where any user with DOT token can choose to participate in Polkadot Staking and governance as validator or nominee. In this process, the whole system needs to ensure the security of the network by locking the DOT tokens pledged by the verifier and the nominee, and it is expected that more than 50% of DOT will be pledged in the future. When a user wants to exstate Staking, there is a three-month untying period, which dramatically sequels DOT's liquidity and prevents users from engaging in other financial services.

Acala Network provides a solution to the liquidity problem of Polkadot Network mortgage assets, ensuring that users are given liquidity to participate in financial services such as decentralized lending, leveraged trading and crowdfunding for quality projects without losing their mortgage assets and rewards.

Acala Network aims to make such staking staking liquid, enabling it to participate in DeFi and improve value utilization. While DOT holders participate in Staking through the Acala Network, they get paper of equal value, which they use as collateral to generate stablemoney. This ensures that assets are not diluted by the original chain to participate in financial services. The Acala Network is initiated and promoted by the Acala Foundation. The Acala Foundation focuses on helping and managing applications in DeFi, especially those that can be used as open financial infrastructures, such as stable currencies and increased liquidity. The Acala Network consists of Laminar and Polkawallet as founding members, both of whom are participants and contributors to the Polkadot ecosystem.

1. Governance: ACA holders have the right to participate in network governance, including determining network fee, network protocol deployment, election of board members, network upgrade, etc. 2. Incentive: ACA will be used to motivate collectors in Acala network, POL and IPO participation rewards, etc. 3. Network use right: Pay network transaction fee by using ACA on the network; 4. Capitalization: Acala network proceeds will eventually be converted into ACA for asset reserve. In addition to supporting staboin settlement, Acala network proceeds will also be invested in dSWF decentralized sovereign wealth fund to help Acala network achieve long-term sustainable development.

DEX in Acala network adopts constant product market-maker model, which is very simple and formula x ×у=к.

Acala is fully decentralized, can use assets on the blockchain connected to the Polkadot network (including Ethereum and Bitcoin) as collateral, and can be used by any chain (or digital jurisdiction) within the Polkadot network as well as applications on those chains. 2. Acala has stable currency Honzon agreement supporting cross-chain multi-asset mortgage and Homa agreement releasing pledged asset liquidity to realize the stability and liquidity of open finance. 3. Acala is a network of gradual decentralization. Network governance will start with PoA(entrusted parliamentary governance), then gradually become elected parliamentary governance, and finally achieve true decentralization. Therefore, those providers or node operators who want to join this prophesy gateway need to be approved by parliamentary governance. 4. Acala implements user custom service fee Settings (e.g., no service charge for prophet feeder services) and anti-ddos attacks, such as allowing each block to call each authorized Prophet provider once to ensure network security and reduce costs.

1. Acala Network, which is constructed based on Substrate framework, will be connected to Polkadot ecosystem as a parallel link. The operation mode of the parallel chain is to access Polkadot Network through slots. 2. Acala also has three different networks according to the launching process of Polkadot network: (1) Mandala Test network: TC5 version of the test network has been launched, and all test network tokens are only used to experience Acala network functions, without real value, and will be cleared after the update of the test network; (2) Karura Experiment Pioneer network: It will participate in the bidding of parallel chain slot of Kusama, and the network's original coin is KAR. It will go online first and test the DeFi function of Acala in an environment with certain economic value. It is positioned to become a decentralized financial center in Kusama. (3) Acala main network: Will participate in Polkadot's parallel chain slot bidding, all related functions will be launched after the stable operation of Karura first network, committed to become a decentralized financial center on Polkadot.

Acala Network tokens, known simply as ACA, are 100 million in total and will be cast and stored in the ACA reserve pool when the main Network is launched.

1. Win the first place of Rococo parallel chain test network slot. 2. To build the first Polkadot DeFi platform. 3. Acala has received official financial support from Web3 Foundation and investment from several world-renowned institutions including Polychain, Pantera, Republic, Hypersphere and DCG. 4. The first decentralized finance alliance, jointly launched by the Laminar team of decentralized Finance Protocols and Polkawallet team.

Acala network will be connected to Boca network in a parallel chain way to obtain cross-chain function, which requires a large number of DOT to participate in the bidding of slots in Polkadot network. Therefore, in the design of economic model, they will take part of ACA as the reward of users bidding for slots in Acala network. The current economic white paper predicts that the leasing program will be three rounds of two years each, and the total incentive will be about 34% of the total for the three rounds.

Acala Network is a stablecoin system built on Substrate framework. The risk control mechanism takes advantage of MakerDAO, but the technical implementation is completely different. MakerDAO uses VM to write smart contracts using Solidity. The contract in Acala Network is realized through the Runtime layer, and due to Polkadot's natural cross-chain property and expansion scheme, Acala Network has obvious advantages in the diversity and ductility of mortgage assets.

Through Acala's product design, we can see that it is trying to create a DeFi ecosystem with a very broad reach. From the perspective of DeFi's vertical stratification, the asset and trading platform is at the bottom, and after having these foundations, it is possible to build the superstructure of lending, mining, derivatives, aggregation and so on. Acala's stablecoin system and exchange are designed to build this infrastructure and pave the way for a rich Acala ecosystem. Acala's current product solution logic is self-consistent, but it still needs to be supported by business data and follow up to see how its business grows.

ACA tokens will be issued after the launch of the main network, with a total of 100 million tokens, mainly taking on the governance role within Acala. The token model is reasonably designed. An initial allocation of 34% of the tokens will be allocated to DOT holders participating in the slot auction, with a higher weighting, in the hope that more DOT holders will be incentivized to help Acala win the first round.

While many projects are interested in participating in the Polkadot auction, they differ in various aspects such as capital reserves, token incentive schemes, and slightly in their enthusiasm for slot auctions. Acala attaches great importance to slot auction and gives a high weight to the allocation of tokens. Besides, it has a strong investment lineup and abundant funds behind it, and has a great chance to successfully win the first parallel chain.

Acala is currently trying to build DeFi with a large scale, which is a test of the team's operation ability. There is no established project as a competitor in Polkadot ecosystem or even ethereum ecosystem. The core of the competition of DeFi products lies in attracting liquidity. Polkadot ecosystem is at an extremely early stage and the pattern is uncertain. Being the first to acquire the right to use slots will give Polkadot a first-mover advantage in liquidity and asset growth. The ability to capture mobility and users is also unknown, and the uncertainty of Polkadot's ecological development will directly affect Acala's development.

Acala's core vision is to be an indispensable infrastructure for the Polkadot DeFi ecosystem. It builds a complete decentralized financial application for users and a series of DeFi components out of the box for developers to build a complete Polkadot DeFi ecosystem. The project has a wide layout and a large vision, which requires strong team and financial support. Acala was launched by the Laminar and Polkawallet teams, a decentralized financial protocol, and is backed by a number of venture capital firms. From the perspective of economic model, ACA token is a means of payment and plays a governance role in the system, and the token model is reasonable. In the initial allocation, 34% of the tokens will be allocated as a reward for participating in multiple rounds of parallel chain auctions (Karura slot auctions will reward more than 50%), with a high allocation weight, in order to motivate more DOT holders to help Acala win the first round of auctions. As the Acala main network launch process is closely related to the Polkadot slot auction, the Acala team has made sufficient preparations for the auction, and the community has received a good response to the warm-up activity, which makes it more likely to win the auction. From the perspective of product design, Acala has launched core infrastructure such as stablecoin system and exchange. By referring to product design schemes such as MakerDAO and Uniswap in the Ethereum ecosystem, its business logic has been verified on Ethereum, and the user experience can be improved by utilizing the technical advantages of Substrate. For Acala, this reduces trial and error costs and opens up a new market for cross-chain DeFi within the Polkadot ecosystem.