# Acala > The DeFi & Liquidity Hub of Polkadot Acala is a Polkadot parachain that provides a DEX, multi-collateral stablecoin system, and liquid DOT staking in one DeFi platform. Acala is a Polkadot parachain that combines a decentralized exchange, a multi-collateral stablecoin protocol, and a liquid staking system in a single DeFi runtime. Users can swap tokens on AcalaSwap, borrow aSEED stablecoins against crypto collateral through Honzon, and stake DOT to receive liquid LDOT via Homa. Acala EVM+ provides Ethereum-compatible smart contract deployment with access to native Polkadot assets through cross-chain messaging. - Type: Project - Sector: Finance - Status: Active - Founded: 2019-10-01 - Profile: https://thegrid.id/profiles/acala ## Products - [Karura](https://thegrid.id/profiles/acala): Karura is the canary deployment of Acala on Kusama that mirrors the Acala DeFi hub architecture with a decentralized exchange, multi-collateral stablecoin protocol, and liquid KSM staking in a single parachain runtime. The platform serves as a proving ground for new features before their deployment on Polkadot. Karura supports Ethereum-compatible smart contracts through an integrated EVM layer. (Financial Services Platform, Live) - [Acala](https://thegrid.id/profiles/acala): Acala is a financial services platform on Polkadot that combines automated token swaps, multi-collateral stablecoin issuance, and liquid DOT staking in a single parachain runtime. The platform integrates Acala EVM+, an Ethereum-compatible execution environment that allows smart contracts to interact with native Polkadot and cross-chain assets. Transaction fees can be paid in any token supported by the exchange. (Financial Services Platform, Live, Main Product) - [AcalaSwap](https://thegrid.id/profiles/acala): AcalaSwap is a decentralized exchange on the Acala parachain that enables trustless token swaps through AMM-based liquidity pools. The exchange is integrated into the Acala runtime, allowing transaction fees to be paid in any supported token and providing MEV protection through an in-protocol oracle. AcalaSwap liquidity also serves as a backstop for the Honzon stablecoin liquidation mechanism. (Decentralised Exchange, Live) - [Homa Protocol](https://thegrid.id/profiles/acala): Homa Protocol is a liquid staking protocol on Acala that allows users to stake DOT and receive LDOT, a transferable token representing staked DOT plus accrued rewards. LDOT can be used as collateral in the Honzon Protocol to borrow aSEED, allowing DOT stakers to access DeFi liquidity without unstaking. The protocol distributes DOT staking yield to LDOT holders automatically. (Liquid Staking, Live) - [Honzon Protocol](https://thegrid.id/profiles/acala): Honzon Protocol is a stablecoin issuance protocol on Acala that enables users to deposit crypto assets as collateral to open collateralized debt positions and borrow aSEED stablecoins. The protocol uses an automatic risk management algorithm, on-chain governance, and an auction mechanism to maintain collateral ratios and manage liquidations. Supported collateral types include DOT, LDOT, and other cross-chain assets. (Stablecoin Issuer, Live) - [Euphrates](https://thegrid.id/profiles/acala): Euphrates is a yield aggregator on Acala that allows users to deposit liquid staking tokens into reward pools to earn base staking returns, ACA incentives, and loyalty bonuses. The platform supports DOT-based LSTs including LDOT and tDOT, as well as cross-chain tokens such as JitoSOL and rETH. A time-weighted loyalty bonus mechanism redistributes early withdrawal forfeitures to long-term participants. (Yield Aggregator, Live) ## Assets - [Acala Token (ACA)](https://thegrid.id/profiles/acala): ACA is the native utility and governance token of Acala Network, a DeFi hub on Polkadot. It is used for paying network transaction fees, stability fees on CDP positions, and voting on governance proposals including protocol upgrades and risk parameter changes. ACA has a fixed supply of 1.6 billion tokens with deflationary mechanisms through fee burns and unspent emission burns. (Utility) - [Acala Seed (aSEED)](https://thegrid.id/profiles/acala): aSEED is a decentralized stablecoin on Acala Network, formerly named aUSD and previously pegged to the US dollar. It is generated through the Honzon Protocol by depositing DOT or other crypto assets as collateral in a collateralized debt position. Following an August 2022 exploit that caused a severe depeg, the community rebranded the token from aUSD to aSEED in July 2023. (Stablecoin) - [Liquid DOT (LDOT)](https://thegrid.id/profiles/acala): LDOT is a liquid staking token on Acala representing staked DOT plus accrued staking rewards from the Homa Protocol. It is used as collateral in the Honzon Protocol to borrow aSEED and can be traded on AcalaSwap, allowing holders to access staking yield and DeFi liquidity simultaneously. LDOT accrues rewards automatically without requiring manual claims. (Liquid Staking Tokens (LSTs)) ## Links - [Main](https://acala.network) - [Documentation](https://wiki.acala.network) - [Whitepaper](https://github.com/AcalaNetwork/Acala-white-paper/blob/master/Acala_Whitepaper.pdf) - [Governance](https://apps.acala.network/governance) - [Terms of Service](https://acala.network/terms) - [Privacy policy](https://acala.network/privacy) - [Media Kit/branding](https://acala.network/branding) - [Twitter / X](https://x.com/AcalaNetwork) - [Discord](https://discord.gg/5JJgXKSznc) - [Telegram](https://t.me/AcalaAnnouncement) - [GitHub](https://github.com/AcalaNetwork) - [YouTube](https://youtube.com/@acalanetwork) - [LinkedIn](https://linkedin.com/company/acalanetwork) - [Facebook](https://facebook.com/acalanetwork) - [Twitter / X](https://x.com/KasuraNetwork) - [Medium](https://medium.com/acalanetwork) ## Legal This data is provided under two licensing models. Model 1 - open data. 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