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![Kosmozilla_eth Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1373562893380255744.png) Kosmozilla.eth [@Kosmozilla_eth](/creator/twitter/Kosmozilla_eth) on x 1703 followers
Created: 2025-07-24 08:37:05 UTC

What is Acala on Polkadot?

@AcalaNetwork  is a decentralized finance (DeFi) platform built as a parachain on @Polkadot  that provides infrastructure for financial applications, including stablecoins, staking, and decentralized exchanges

Acala is:
 - Polkadot's DeFi hub: Acala offers a suite of financial tools, such as lending, staking, and asset exchange, for the Polkadot ecosystem
 - aUSD stablecoin: A decentralized stablecoin pegged to the US dollar, backed by cross-chain assets through the Honzon protocol
 - Liquid staking (L-DOT): Allows $DOT tokens to be staked, receiving a liquid L-DOT token for use in DeFi
 - Ethereum compatibility: Acala EVM+ supports Ethereum smart contracts, facilitating DApp migration and providing flexibility to developers
 - Cross-chain interoperability: Enables seamless asset exchange between Polkadot parachains and other blockchains, such as Ethereum
 - Low fees: Uses micro-fees thanks to Polkadot's high throughput, allowing fees to be paid with any token
 - Decentralized governance: $ACA token holders participate in voting on network upgrades and protocols
 - Decentralized exchange (DEX): Acala Swap is an AMM exchange with low slippage losses, optimized for stable assets
 - Polkadot security: Acala leverages Polkadot's shared security, providing robust protection for transactions and data
 - Hybrid Finance (HyFi): Combines DeFi with traditional finance, collaborating with fintech companies for wider accessibility

Acala plays a key role in the development of decentralized finance in the Polkadot ecosystem, providing innovative and accessible financial solutions

![](https://pbs.twimg.com/media/GwnBvbtXYAAnk7G.jpg)

XXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1948301395909550309/c:line.svg)

**Related Topics**
[coins dot](/topic/coins-dot)
[lending](/topic/lending)
[hub](/topic/hub)
[exchanges](/topic/exchanges)
[staking](/topic/staking)
[stablecoins](/topic/stablecoins)
[finance](/topic/finance)
[decentralized](/topic/decentralized)

[Post Link](https://x.com/Kosmozilla_eth/status/1948301395909550309)