Acala

Acala is a decentralized finance (DeFi) protocol and a layer-1 smart contract platform built on the Polkadot ecosystem. The platform is designed to provide a suite of financial services, with a primary focus on creating a unified liquidity experience across various blockchain layers. Acala functions as a parachain connected to the Polkadot Relay chain, which provides its network security and consensus. This structure allows Acala to offer a scalable and secure environment for decentralized applications (dApps).

The core of Acala's offering is its role as a liquidity hub, aiming to aggregate liquidity from different Layer-1, Layer-2, and parachain environments. This is intended to address the issue of fragmented liquidity in the blockchain space, making it easier for dApps on any chain to access deep and ubiquitous liquidity. The platform also provides backend infrastructure for traditional finance, positioning itself as a bridge between the conventional financial world and the emerging DeFi sector. Its services are utilized by institutions such as Coinbase and Figment.

Acala's ecosystem includes a hybrid virtual machine that supports smart contracts, enabling developers to build and deploy a wide range of DeFi applications. The platform has undergone significant upgrades, such as the Exodus and Sinai upgrades, to enhance its capabilities and elevate the network's performance. Governance of the Acala network is decentralized, with a public Referenda Chamber, a General Council, and a Technical Committee, allowing stakeholders to participate in the decision-making process.

Keywords: DeFi, Polkadot, liquidity hub, parachain, smart contract platform, decentralized finance, blockchain infrastructure, stablecoin, cross-chain, governance