Popular Ethereum rival Polkadot has seen several decentralized finance (DeFi) protocols attempt to secure a spot in its multi-chain platform. The first DeFi-facing platform to do so is Acala Network.
Acala Wins With 32 Million DOT
In a November 18 Twitter thread, the Acala Network announced the first recipient of the highly coveted parachain spot on the Polkadot network.
Acala, which seeks to be the premier destination for DeFi services on the Polkadot ecosystem, said it could secure the spot after 32 million DOT was invested in its crowdloan exercise. With the current price of DOT going for above $40, this puts the crowdfund at about $1.3 billion.
Acala noted that over 81,000 community members contributed to the success and will be among the first five projects set to launch on December 18.
The sharded technology network also congratulated the Acala team for winning the hotly contested first position on the first-ever parachain auction. They also noted that the Acala network would be onboarded at block number 8179200 at the beginning of lease six alongside five other winners.
Continuing on the thread, Acala noted that Polkadot’s ecosystem attracted talented DeFi teams due to its strong overlay enabling a multi-chain ecosystem.
The Polkadot project has been ongoing for the last half-decade, with Ethereum (ETH) co-founder Dr. Gavin Wood launching Polkadot (DOT) and Kusama (KSM) after leaving the older blockchain. His mission has always been to enable seamless transfer of all asset types besides blockchain-based assets between private and public blockchain platforms.
Polkadot recently launched its parachain auction, which is still under development. This will see a select body of DeFi protocols secure a space on the Polkadot network for the next two years while plugging into the security and scalability of the network.
Aside from Acala, Moonbeam has been tapped as the next DeFi protocol set to secure a spot. So far, the protocol has raised over $1.362 billion, with 34.432 million DOT staked so far. If Moonbeam is successful and launches on the designated date, each DOT staked will attract 1 Moonbeam’s governance token GLMR with 30% of the rewards available for claim. The 70% balance will be vested throughout its 96-month lease on the Polkadot network.
Moonbeam is rewarding investors further with a 5% return on investment (ROI) on its GLMR token to attract more investment. The rewards will be shared from its 100 million pool or 10% of its token supply.
Polkadot Flexing Its DeFi Muscles
The Polkadot team has preferred to let the protocol’s capabilities show for themselves. Shunning any media or public relations antics, the Ethereum rival has buckled down and set out to build a truly heterogeneous network.
So far, the Ethereum competitor has been hugely successful, with over ten top-performing DeFi protocols vying for a spot on the network.
The sister network Kusama, serving as a development testbed for Polkadot, previously launched a parachain network for its protocol. It was also hugely popular, with over 16 parachain teams registered interests in the auction process. This saw crowdloans of over 1.3 million KSM contributions staked on the protocol.
Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system. When not immersed in the daily events in the crypto scene, he can be found watching legal reruns or trying to beat his Scrabble high score.