Acala

In 2023, Acala announced that it had developed a recovery strategy known as the "Exodus Plan". This plan was created as a roadmap to overhaul and improve the Acala Network protocols so they can be more stable as they grown.

Acala is a layer-1 smart contract platform that acts as a decentralized finance (DeFi) space and also houses the stablecoin protocol for Polkadot. It is Ethereum compatible and has built-in decentralized finance (DeFi) protocols. The stated mission of Acala is to support and nurture the financial applications of web3 for a more open future so that everyone can experience the stability, liquidity, and accessibility of DeFi.

The Acala platform is for smart contracts and includes a decentralized exchange that is operated with an automated market model. Users can stake DOT tokens, which are used on Polkadot, for LDOT. The LDOT tokens can be invested, lent, or used to collateralize the Acala Dollar (aUSD), a stablecoin on Polkadot.

The Acala token is called ACA and it is the utility token for the blockchain known as Polkadot. It can be used for transaction fees as well as a governance token to vote for council members and decisions related to the development of the Acala network. There was a fixed supply of 1 billion ACA tokens minted at its genesis in December 2021.

In August 2022, Acala Network was hacked and the culprit minted approximately 1,200,000 aUSD tokens, which dropped the value of the token to almost zero. In response, the team at Acala put the network into maintenance mode, which halted actions such as on-chain swaps so that the stolen funds could not leave the parachain. Some funds were indeed stolen and the estimated total of funds stolen was approximately $10 million USD. aUSD did eventually recover but has yet to hit its $1 peg.