A global blockchain and digital asset investment firm Digital Finance Group (DFG) allocates 500,000 DOT to Acala. The Acala ecosystem is a DeFi platform developed on the Polkadot blockchain network. Polkadot’s upcoming parachain auctions is a perfect opportunity for Acala to bid for a parachain slot.
In October 2021, DeFi had grown from $1 billion in total value in 2018 to $98 billion, as per DeFi pulse. Through this, it is possible to restructure aspects of the fundamental infrastructure, such as payments, lending, and investing, with the ecosystem.
One of the biggest obstacles to widespread adoption of DeFi is the astronomical gas fees on Ethereum. Therefore, DFG’s heavy investment in Polkadot aims to solve these challenges.
In addition, multichain blockchain founder Gavin Wood recently announced a $774 million fund, a fund intended for the development of innovative ideas.
On the other hand, with its layer-1 smart contracts platform, Acala Network aims to fuel Polkadot’s DeFi hub. In contrast to Ethereum gas fees which are decided by the market, Polkadot and its canary network are driven by computer algorithms with a constant fair fee.
In June, Acala Network won the first parachain auction on Kusama after Coinbase-backed Acala Network won the first parachain auction on Kusama. Polkadot’s parachain auctions will be held early in November. With 100 slots up for grabs among projects building on the Polkadot platform.
Prior to the highly anticipated parachain auctions, Acala plans to secure its place on Polkadot through a crowdloan. Moreover, Acala supporters receive the ACA tokens as compensation for the crowdloan. Notably, this happens in exchange for locking their DOT tokens for two years.
Furthermore, Acala’s recently launched Liquid Crowdloan Dot (IcDOT). Also, allows early contributors to utilize an unlocked token that represents their DOT contribution. In addition, Polkadot will award a fair share of ownership of the Acala network when it launches Acala after securing a slot on the platform.
Digital Finance Group CEO James Wo said,
Added to this, Bette Chen of Acala explained that the support of Digital Finance Group for Acala Crowdloan continues its strong leadership in accelerating decentralized economies. Evenmore, the DFG continues to support them as they work to achieve their mission of improving financial access, opportunity, and outcomes for all people around the world.
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Source: Cryptocurrency - investing.com
