Buy/Sell Crypto

Acala Wins Polkadot’s First Parachain Auction


Key Takeaways

Acala has secured a parachain on Polkadot.
The DeFi project narrowly beat Moonbeam in Polkadot’s first candle auction.
Parachain auctions are scheduled to run weekly through November and December. The second batch will commence on Dec. 23 and run fortnightly into early 2022.

Share this article

Acala received 32.5 million DOT worth $1.27 billion for the auction. 

Acala Secures Parachain Slot 

Acala has won Polkadot’s first parachain auction. 

With over 32M DOT contributed by over 81,000 community members, Acala has won the first parachain auction on @Polkadot!

Thank you to everyone who took part in this historic event. (1/3) pic.twitter.com/CL2jCwA9Re

— Acala – DeFi Hub of Polkadot (@AcalaNetwork) November 18, 2021

The smart contract platform, which sells itself as Polkadot’s DeFi hub, announced the news late Thursday following a seven-day auction. “Thank you to everyone who took part in this historic event,” a tweet read. “We’re looking forward to kicking off the multi-chain future with you!”

Dan Reecer, VP of Growth at Acala, told Crypto Briefing that while the team had “no expectation” to win, but that it was pleased with the outcome. He added: 

“We knew that the Polkadot community is thriving and incredibly supportive of all the parachains. We worked hard to educate the community, onboard them to the Polkadot wallet, and support them through the process, so it’s fantastic to see over 81,000 participants supporting Acala in the end.” 

Acala received 32,515,989.5 DOT worth roughly $1.27 billion from 81,218 contributors. Based on the total DOT received, Acala will distribute 105,893,309.1 ACA tokens to its community of contributors. Additionally, 24,116,159.8 LCDOT tokens will be distributed to crowdloan backers for use in the Acala Network. LCDOT is a liquid token that represents DOT while it’s locked up. 

Acala is one of the leading projects built on Polkadot. It’s hoping to become the home of DeFi on the network, with plans to launch products like an automated market maker, liquid DOT staking, and a decentralized stablecoin called aUSD. Acala is also optimizing for interoperability with the Ethereum Virtual Machine. 

To be eligible to join the network, projects must secure one of 100 parachains, individual blockchains that connect to Polkadot’s Relay Chain to make the network scalable and interoperable. 

Polkadot is currently in the process of holding auctions for projects hoping to join the network. In each auction, projects must raise funds in the form of Polkadot’s DOT token from their respective communities. The DOT gets locked until the parachain lease expires. To reward users for contributing DOT, projects typically native tokens. In this case, contributors will receive Acala’s ACA token. 

The first parachain auction launched last week and saw fierce competition between Acala and the cross-chain platform Moonbeam. Soon after launch, both projects had raised millions of DOT tokens, significantly outpacing every other entrant by a significant margin. Interestingly, data from DotMarketCap shows that Moonbeam received more DOT than Acala with 34,161,504 tokens contributed, but Acala won due to the candle auction format. 

The winner of the auction was determined by the project that had the most DOT contributed at a randomly selected point. The candle blew out at 20:32:42 on Nov. 15, at which point Acala was leading. The Moonbeam team congratulated Acala on winning the slot, commenting that “Polkadot’s success will be reflected in the activity that all its parachains will bring to its ecosystem.” 

Reecer told Crypto Briefing that Acala would launch on Dec. 18, with plans to roll out its Liquid DOT staking, the aUSD stablecoin, and automated market maker to follow into next year. “We are really excited for all that is to come in 2022 and beyond,” he said. Acala will have the parachain lease until it expires on Oct. 20, 2023. 

The first set of parachain auctions are due to run weekly from November through December, with the next one commencing today. An initial 11 slots are up for auction. The second batch of auctions will commence on Dec. 23 and run fortnightly. Each one is due to last seven days. 

Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies. 

This news was brought to you by ANKR, our preferred DeFi Partner.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Polkadot Holders Are Backing Acala and Moonbeam for Parachains

Moonbeam and Acala Network have raised a combined total of $882 million to bid in Polkadot’s upcoming Parachain auctions. Polkadot Projects Await Parachain Auctions Moonbeam and Acala Network look set…

What Are Polkadot’s Parachain Auctions?

The Polkadot ecosystem is preparing for one of its biggest events to date: the launch of parachain auctions.  Polkadot Prepares for Parachain Auctions  Layer 1 smart contract platforms like Solana,…

MDEX: Overlooked Decentralized Exchange That Pays You to Trade

Based on statistics from DeBank and dapp.com, one of the top-performing decentralized exchanges by TVL and trading volume this year is MDEX—an AMM-based DEX functioning across the Huobi Eco-chain (HECO), Binance Smart Chain…

Is Polkadot Ready to Rebound to New Highs?

Polkadot could be gearing up for a sustained rebound toward new all-time highs, depending on DOT’s ability to hold above a crucial support barrier. Polkadot Holds at Crucial Support Polkadot…





Source

Tags

Share this post:

Share on facebook
Share on twitter
Share on pinterest
Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts

THE ONE AND ONLY WAY TO MAKE MONEY IN AUTOMATIC EASILY!

Receive the whole procedure to be able to follow our signals in less than 2 minutes.

Follow Us

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

To access the VIP channel for free and enjoy the benefits of this exclusive channel, just follow these 3 steps:

1. Open a real account with one of our partner brokers necessarily through these links.

⚠️ Select Standard account

2. Make a deposit of at least €500 (€1000/2000 recommended) or more depending on your capital.

Double bonus as a gift! 🎁

        • 1st deposit: 50% bonus offered!
        • 2nd deposit: 20% bonus offered!

*The bonus will of course be added automatically after your deposit. ✅

3. Once done, you can send us the Screenshot of your deposit to support@signaltrading.cryptalite.com to receive the link of the VIP channel 🚀

(If you already have an account with these different brokers, you need to use another ID with another name + email).

Follow Us

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.