Earn From 1 Million in ACA Rewards During Acala’s Inaugural Liquidity Mining Program

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Acala

4 min readFeb 9, 2022

Become an Acala Swap Liquidity Provider for LCDOT/DOT, LCDOT/aUSD, and ACA/aUSD To Earn ACA From Three Kickoff Rewards Pools.

To celebrate the initiation of the Acala DeFi economy, the Acala Foundation is allocating 1 million ACA in liquidity mining incentives to the Acala Kickoff Rewards program. Beginning February 10 at 2:00 am UTC, the incentive program will be applied to select liquidity pairs and extend over six months to also include newer liquidity pairs as they become live on Acala Swap, the AMM-style, trustless exchange built on Acala.

The incentive program offers liquidity providers the chance to earn ACA rewards from several inaugural rewards pools starting with LCDOT/DOT, LCDOT/aUSD, and ACA/aUSD. As a DOT-based economy, the listing of LCDOT and DOT on Acala marks the beginning of expanded capabilities for the DOT community. In addition, the initial aUSD pairs will help kickstart the Acala Dollar stablecoin, the core product the Acala economy is built upon and the primary decentralized stablecoin of the Polkadot ecosystem. Read on for more information.

What is Acala Swap?

Acala Swap is a decentralized automated market maker (AMM) exchange, built as a core component supporting Acala’s decentralized stablecoin, aUSD, as well as adding critical functionality to the entire Acala DeFi ecosystem. Acala Swap powers the liquidations that help support the health and operation of aUSD. By listing tokens in Acala Swap, these tokens can also become eligible to become accepted collateral that can be used to mint aUSD.

In addition, since the Acala Swap DApp is built into Acala’s blockchain, it provides liquidity and backend functionality serving DApps built in the Acala ecosystem, including Acala’s EVM+. One example of the functionality that Acala Swap enables is the ability to pay gas fees in any token. Users can pay gas fees in a foreign token, wrapped ETH for example, and the wrapped ETH is then swapped for ACA in the background to pay the gas fee. Over time, all parachain tokens and countless other tokens from Acala, ERC20 tokens from Acala EVM+, Polkadot ecosystem tokens, and broader Web3 ecosystem tokens will be listed on Acala Swap.

Kickoff Reward Program Details

Over the course of six months, a total of 1,000,000 ACA rewards will be distributed to different pools on Acala Swap. The first month allocation is outlined below with 50,000, 75,000, and 100,000 ACA to be awarded to LPs to the initial pairs of LCDOT/DOT, LCDOT/aUSD, and ACA/aUSD, respectively. For subsequent months, each allocation will adjust to account for additional pairs and to support capital efficiency on Acala.

For example, once DOT Liquid Staking is launched and the LDOT asset is supported on Acala Swap, a larger incentive may be shifted from DOT to LDOT pairs (details to be announced).

To kick off the program, the first three pairs eligible for incentives are as follows:

LCDOT/DOT

Stake LCDOT-DOT LP token via the Earn tab to receive rewards
Starts: 2022–02–10 at approx. UTC 2:00 AM (block #376625)
1st Month Reward: Total 50,000 ACA
Loyalty Bonus: 60% (20k base rewards + 30k loyalty bonus)
Reward payout: Every 5 blocks

LCDOT/aUSD

Stake LCDOT-aUSD LP token via the Earn tab to receive rewards
Starts: 2022–02–11 at approx. UTC 1:00 AM (block #383555)
1st Month Reward: 75,000 ACA
Loyalty Bonus: 60% (30k base rewards + 45k loyalty bonus)
Reward payout: Every 5 blocks

ACA/aUSD

Stake ACA-aUSD LP token via the Earn tab to receive rewards
Starts: 2022–02–15 at ˜UTC 9:30 PM (block #418505)
1st Month Reward: 100,000 ACA
Loyalty Bonus: 60% (40k base rewards + 60k loyalty bonus)
Reward payout: Every 5 blocks

Additional Details:

APR is adjusted in real-time with on-chain rewards and number of participants, and the specific APR is reflected as what is displayed on the page at the time.
Early reward redemption: users can choose to redeem rewards in advance (before the program ends). If rewards are redeemed early, the base reward will be redeemed to the account, and the Loyalty Bonus will be returned to the pool to be shared by other LPs.
LP tokens can be withdrawn at any time. No further rewards will be distributed for withdrawn LPs, but existing rewards will not be affected.

Get Started

Before participating in the Acala Kickoff Rewards program, be sure you’ve reviewed the details on the recently-launched one-way DOT Bridge, and successfully transferred your DOT liquidity to Acala by following this guide.

Please note: The one-directional DOT bridge only enables the transfer of DOT to Acala, with no immediate way to transfer out, as users will only be able to exit with their liquidity when the platform is completely enabled. With this in mind, it’s advisable that only our most DeFi-savvy supporters participate during this Early Adopter Phase.

For a guide on adding liquidity to Acala Swap, visit:
https://guide.acalaapps.wiki/acala-swap/lp-guide

About Acala

Acala is an Ethereum-compatible smart contract platform optimized for DeFi and scaling DApps to Polkadot. The blockchain has built-in DeFi protocols for application developers to leverage, including a decentralized stablecoin (Acala Dollar — aUSD), a trustless staking derivatives (liquid DOT — LDOT), and a decentralized exchange.