Web3 Audits: Acala

Published in

Reallm

3 min readDec 21, 2022

Recently we’ve had a pleasure to audit the state of affairs at Acala.

Without further due here is our short overview. Everything below is not an investment advice and is presented for information purposes only.

What is Acala

Polkadot stablecoin ($aUSD) ecosystem. Includes DEX, lending and liquid staking of polkadot (buying $LDOT appreciates according to staking rewards versus $DOT).

Team

Ruitao Su CEO, Commerce background, 10+ years of experience, top New Zealand university.

Bette Chen Co-founder, Product Manager, MBA, top New Zealand universities.

Bryan Chen Co-founder, CTO, 9 years of experience. Note: we consider this yellow flag due to Windows / Ruby / AngularJS skills. Perhaps the Acala hack was inevitable.

34+ people on the global team

Backed by Coinbase Ventures, Pantera Capital, Polychain Capital, and other top firms. Note: Alameda Research was one of the backers but fortunately only minor with around $25k worth of Acala at current prices.

Developer traction

Technical Analysis

ACA/USDT market is trending down, no signs of bottoming just yet, 12 EMA is a strong resistance.

Engagement

72,000+ accounts;

$206M~ TVL on Acala

$18M~ TVL on Karura

2% of Kusama transacting value

Tokenomics

$ACA <> $0.132

21x from previous ATH and 106x from current top 10

Circulating Supply: 57% of 1,000,000,000 total (0% inflation)

Fully Diluted Marketcap: $132,175,999

24h Volume: $8 mln (10%)

~64,000,000 tokens (7% of supply) are still locked after Parachain auction and will vest over 12 months

User Retention

Very high first week retention rate ~80% in April. Gradual retention drop between weekly cohorts. Some signs of retention slope improvement due to changes in the end of July. Less than 50% of users churned after their first day of usage overall!