What is the relationship between ACA and DOT?
In the blockchain context, ACA and DOT represent a "functional and value-added relationship within the parachain ecosystem": Acala Network (ACA) is a DeFi parachain within the Polkadot (DOT) ecosystem. ACA is used for governance and functionality, while DOT is used for staking security and cross-chain transactions. Treasury revenue is used to establish a closed loop of value flow and incentives from "DOT to ACA."
1. Positioning: ACA is the DeFi center and liquidity hub of the Polkadot ecosystem, while DOT is the relay chain and security layer for a multi-chain heterogeneous ecosystem. ACA operates based on the security of the DOT relay chain.
2. Role: ACA provides governance and DeFi functionality (aUSD, LDOT, EVM+, etc.), while DOT provides governance, staking security, and a cross-chain hub. ACA uses DOT for staking and cross-chain asset bridging.
3. Value Flow: The ACA Treasury holds DOT and uses staking revenue to repurchase ACA tokens for rewards. Staking generates treasury revenue, forming a closed loop of "DOT revenue → ACA repurchase → staking rewards."
4. Technical Dependency: ACA is a parachain, utilizing Substrate and the EVM + Relay Chain + Parachain architecture. ACA achieves scalability and interoperability on top of DOT.
In a nutshell
DOT is Polkadot's "security and cross-chain foundation," and ACA is a DeFi-focused parachain built on top of it. The two establish a value and incentive linkage through treasury revenue and staking rewards.