# LDOT

### Overview

LDOT is Acala Network’s flagship Liquid Staking Token (LST), representing staked DOT while retaining liquidity for use in DeFi. As Acala evolves into the liquidity layer for Polkadot and beyond, LDOT serves a central role in aligning capital efficiency with staking security. The ongoing integration of LDOT into Acala’s Universal Asset Hub (UAH), ecosystem dApps, and partner protocols is designed to expand its utility, deepen liquidity, and enhance overall network value.

This documentation outlines the current and intended utilities, liquidity incentives, and integration pathways for LDOT as a core asset within the Acala ecosystem. Updates will be made as new protocols and features are launched.

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### LDOT Utility

LDOT is designed to maximize DOT staking yield while preserving liquidity for use across DeFi applications. The following outlines LDOT’s key utilities within Acala Network:

* **Staking Liquidity Representation**:\
  LDOT represents staked DOT on Polkadot via Acala’s native liquid staking protocol. Users receive LDOT in return for staking DOT, accruing staking rewards over time.
* **Liquidity Pool Participation**:\
  LDOT is a core component of long-term incentivized pools in Acala Swap, Stellaswap and beyond:
  * LDOT to DOT
  * LDOT to ACA
  * LDOT to other LSDs (e.g., JitoSOL, wstETH, etc.)
* **Validator Voting**:\
  LDOT holders may participate in validator voting using their LDOT as voting power. 1 LDOT equals to 1 vote for a validator candidate.&#x20;
* **Cross-Chain Utility**:\
  LDOT is supported in the broader Polkadot ecosystem via XCM, allowing it to be used in DeFi platforms across parachains.

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### LDOT Minting & Redemption

* Users can mint LDOT by staking DOT via Acala’s Liquid Staking protocol. The staked DOT continues to earn native staking rewards.
* LDOT is redeemable for DOT via:
  * **Instant Swap** (on secondary markets or swap pools)
  * **Delayed Unbonding** (native redemption process with a waiting period aligned with Polkadot’s unbonding cycle)

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### LDOT and Network Safety

As a staking derivative, LDOT plays a role in enhancing network security without sacrificing capital flexibility. The Acala staking system ensures proper validator selection and slashing coverage to protect users and the network.

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### Summary

LDOT is essential to Acala’s liquidity strategy and DeFi expansion. It connects DOT staking to DeFi utility, enabling users to earn while remaining active participants in Acala’s evolving ecosystem. Continued upgrades will expand LDOT’s role in Acala’s cross-chain liquidity, governance, and product suite.


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