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Acala Network Wins First Parachain Auction on Polkadot, Commits $1.3B Worth DOT

UTC by Bhushan Akolkar · 2 min read
Acala Network Wins First Parachain Auction on Polkadot, Commits $1.3B Worth DOT
Photo: Unsplash

The Acala Network will be onboarded on Polkadot in the next month of December 2021. Acala managed to secure the first slot on Polkadot with a total of 32,515,989 DOT with a staggering $1.2 billion.

Last week, Ethereum-competitor Polkadot kickstarted the auctions for parachains running on its network. On Wednesday, November 18, decentralized finance (DeFi) protocol Acala Network has managed to secure the first slot. Acala is an Ethereum-compatible Layer-1 smart contract platform popular for scaling decentralized applications (DApps). This DeFi protocol also serves as a liquidity hub of Polkadot. Acala managed to secure the first slot on Polkadot with a total of 32,515,989 DOT with a staggering $1.2 billion.

Acala on Polkadot

The official announcement from Polkadot reads:

Acala will be onboarded at block #8179200 [Dec. 18] at the beginning of lease 6 with the other first 5 auction winners. Over 81K network stakeholders locked up DOT in favor!

Speaking to CoinDesk after the first parachain auction, Polkadot creator Gavin Wood said:

“There’s real competition and this is really what we want with the auction. It’s something that wouldn’t really have happened in a traditional auction, where they would have kept very low, all the way until the end, and then they would have put everything that they had in as late as possible.”

As per its scheduled plan, Polkadot will be conducting five more parachain auctions over the next few weeks. All the winning projects will ultimately go live simultaneously on December 17. 

The Use of Funds and New Development

One of the first features of the development will be launching a stablecoin on the Polkadot network while building a decentralized exchange (DEX).

“Now that Acala has secured a spot to launch on Polkadot, the real work in launching our blockchain begins. We will begin launching on December 18th, and this will start a phased rollout of several products. Going into 2022, we will launch our Liquid DOT (LDOT) staking product, our decentralized stablecoin aUSD, our AMM-style DEX, and our EVM+ development environment. This launch phase will also include progressive rollout of Acala’s on-chain governance. We are really excited for all that is to come in 2022 and beyond,” said Acala’s VP of Growth Dan Reecer, speaking of this development to CryptoPotato.

The Polkadot (DOT) parachain auction might lead to a bright future for all the DOT token holders. DOT has been one of the top-performing cryptocurrencies in the altcoin space. As of press time, DOT is trading at $40 as the eighth largest crypto with a market cap of $40 billion.

Altcoin News, Blockchain News, Cryptocurrency news, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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