As decentralized finance (DeFi) continues to revolutionize the global financial system, Acala Network stands out as a pivotal player within the Polkadot ecosystem. With its advanced cross-chain capabilities, decentralized stablecoin (aUSD), EVM compatibility, and liquidity-focused architecture, Acala is uniquely positioned to redefine the future of DeFi.

In 2025, Acala took significant steps forward, most notably entering the final integration phase with Snowbridge and Hyperlane, two critical protocols aimed at expanding cross-chain interoperability.

What is Acala Network?

Acala Network is a next-generation DeFi platform built on Polkadot, designed to offer interoperable, scalable, and secure financial solutions. Its mission is to unify liquidity and enable cross-chain asset interaction, empowering users with tools for staking, trading, lending, and borrowing across blockchain ecosystems. The platform operates under a decentralized governance model, where ACA token holders propose and vote on protocol upgrades and system changes, ensuring community-driven evolution.

Core Features of Acala Network

1. Cross-Chain Compatibility

Thanks to Polkadot’s parachain architecture, Acala enables seamless interactions between various blockchains. Users can move assets across chains without relying on centralized exchanges, ensuring a trustless and efficient experience.

Acala acts as a liquidity hub, leveraging trustless bridges to interact with assets across parachains like Moonbeam, Astar, and beyond. With Snowbridge and Hyperlane on the horizon, Acala is set to become even more composable and interconnected.

2. aUSD: The Decentralized Stablecoin

Acala’s native stablecoin, aUSD (Acala Dollar), is multi-collateralized and backed by assets within the Polkadot ecosystem. aUSD provides price stability crucial for DeFi use cases such as loans, trading pairs, and yield farming.

By reducing reliance on volatile cryptocurrencies, aUSD fosters broader adoption and strengthens Acala’s foundation as a DeFi settlement layer.

3. Ethereum Virtual Machine (EVM) Compatibility

The Acala EVM+ allows developers to deploy Ethereum-native smart contracts using Solidity with minimal modifications. This lowers the entry barrier for Ethereum developers and enables existing dApps to port into the Polkadot ecosystem seamlessly.

This EVM integration supports token standards like ERC-20 and makes Acala compatible with leading Ethereum tools like MetaMask, Hardhat, and Remix.

4. Liquidity-Focused Infrastructure

Acala provides a suite of DeFi applications designed to maximize capital efficiency. Users can:

Stake assets like DOT and LDOT
Borrow and lend using aUSD
Swap tokens via Acala Swap DEX
Provide liquidity to earn yield
Pay gas fees in any token

The platform’s micro-gas model and support for fee tokens like ACA, aUSD, or LDOT ensure an affordable and seamless user experience.

Recent Developments: Snowbridge & Hyperlane Integration

Snowbridge: Secure Ethereum–Polkadot Interoperability

Acala is now in the final integration phase with Snowbridge, a trustless bridge between Ethereum and Polkadot. Developed in collaboration with the Web3 Foundation and Parity Technologies, Snowbridge uses light clients to verify transactions without third-party intermediaries.

Key Benefits of Snowbridge Integration:

Secure asset transfers between Ethereum and Acala
Decentralized messaging and token bridging
Support for top Ethereum tokens like ETH, WBTC, and USDC
Improved cross-chain DeFi liquidity

This breakthrough will empower users to bring Ethereum liquidity directly into Acala’s DeFi ecosystem with security on par with native chains.

Hyperlane: Modular Cross-Chain Messaging

Acala is also integrating Hyperlane, a generalized interchain messaging protocol that supports Ethereum, Solana, Avalanche, Layer 2s, and more. Hyperlane empowers Acala to:

Build natively multichain applications
Enable cross-chain liquidity aggregation
Execute smart contracts across ecosystems
Support seamless token transfers and message passing

This composable architecture will unlock a new generation of multichain DeFi dApps on Acala, enhancing user experience and expanding developer possibilities.

Other Ecosystem Upgrades in 2025

Sinai Upgrade

The Sinai Upgrade brought major improvements to Acala's infrastructure:

Unified routing for cross-chain swaps
Expanded support for Liquid Staking Tokens (LSTs) like LDOT, TDOT, and JitoSOL
Optimized performance and UX improvements
Better fee payment options and DEX integrations

This upgrade enhances Acala's appeal to both users and developers by boosting functionality and lowering entry barriers.

Asset Hub Migration

Acala is actively participating in the Polkadot-wide Asset Hub migration, where network features like balances, staking, and governance are being moved to a dedicated parachain. This reduces congestion on the Relay Chain and improves composability across the Polkadot network.

The migration enhances developer tools, UX consistency, and cross-parachain interoperability, reinforcing Acala’s position as a plug-and-play DeFi base layer.

ACA Token: Utility and Use Cases

The ACA token is central to Acala's ecosystem and offers several key utilities:

Transaction Fees: Used to pay network and gas fees
Governance: Vote on proposals and protocol changes
Collateralization: Back loans in the aUSD protocol
Incentives: Earned through liquidity mining, staking, and protocol rewards

As of May 21 2025, ACA is trading around $0.03458 at CoinEx, with market analysts forecasting potential upside as DeFi adoption and cross-chain integrations deepen.

Looking Ahead: Acala’s Roadmap and Future Potential

Acala is set to become a true DeFi Layer-1 platform within Polkadot and across chains, thanks to its expanding features and integrations. The roadmap focuses on:

Real-world asset (RWA) tokenization
Multichain app development
Deepening partnerships with Layer 1s and infrastructure providers
Institutional DeFi integrations

With the upcoming full deployment of Snowbridge and Hyperlane, Acala will connect with Ethereum, Solana, Avalanche, and more, creating a global liquidity network and unlocking powerful DeFi opportunities for users worldwide.

Conclusion

Acala Network has cemented itself as a leading DeFi hub within the Polkadot ecosystem. With powerful tools like aUSD, full EVM compatibility, and a liquidity-centric approach, it offers one of the most comprehensive DeFi experiences in the industry. The integration of Snowbridge and Hyperlane marks a pivotal moment, setting Acala up for truly trustless and decentralized multichain interoperability. As Acala continues to evolve and innovate, it is undoubtedly a platform to watch—and a cornerstone in the future of decentralized finance.

*This article is for informational purposes only and does not constitute investment advice

Acala Network 2025 Updates: The DeFi Powerhouse in the Polkadot Ecosystem