Acala wins first Polkadot parachain auction with over 32 million DOT staked

Thursday morning, Acala, a decentralized finance protocol (DeFi) operating on the Polkadot network (DOT), announced that it had won the v...



Thursday morning, Acala, a decentralized finance protocol (DeFi) operating on the Polkadot network (DOT), announced that it had won the very first Polkadot parachain auction.

Acala raised a total of 32.5 million DOTs, valued at approximately $ 1.28 billion, from 24,934 contributors via an Initial Coin Offering (ICO) structured as a equity loan. As the product is classified as “crypto debt,” Acala would eventually have to repay the DOT it requested from investors. User DOTs are blocked for the duration of the lease term for Polkadot’s parallel channels for sale.

Polkadot is a cross-chain smart contract network that enables the transfer of assets between its parchains. Earlier this month, its developers deployed the first parachain at auction. However, the technology is still in full development. Nonetheless, at the time of publication, the Polkadot Projects have raised over 87.6 million DOT ($ 3.44 billion).

The second Polkadot parachain auction is underway, with a place for rental for the next two years. Currently, the projected winner is Moonbeam, an Ethereum (ETH) compatible smart contract platform designed to build interoperable applications. It is under development and is expected to launch its mainnet by the end of the year.

So far, Moonbeam has raised 34.28 million DOT, or roughly $ 1.35 billion, when auctioned from more than 46,000 backers. Investors will receive a Moonbeam Token (GLMR) for each DOT they promise, with 30% of the rewards immediately available, and the remaining 70% will vest over the 96-week lease. The rewards pool consists of $ 100 million, or 10%, of its token offer of $ 1 billion. GLMR’s symbolic inflation is 5% per year.