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DFG Allocates 500,000 DOT to Acala Prior to Polkadot Parachain Auctions -Breaking

DFG Allocates 500,000 DOT To Acala Priority to Polkadot Parachain Auctions
  • Digital Finance Group (DFG), allocates 500,000 DOT to Acala
  • DeFi’s total value will increase from $1 billion to $98 Billion in 2018, according to the company.
  • Gavin Wood has recently revealed a $774 Million fund.

Acala is being funded by Digital Finance Group, a global digital asset and blockchain investment company. Acala’s ecosystem, a DeFi platform, was developed using the blockchain network. Polkadot’s upcoming parachain auctions is a perfect opportunity for Acala to bid for a parachain slot.

DeFi Pulse reports that DeFi has grown to $98 Billion in value from $1B in 2018. This allows it to reformulate aspects of the infrastructure such as investing and lending.

DeFi’s high-priced gas fees are the main obstacle to wide adoption. Therefore, DFG’s heavy investment in Polkadot aims to solve these challenges.

Gavin Wood (multichain blockchain founder) recently revealed a fund of $774 Million to support the development and implementation innovative ideas.

On the other hand, with its layer-1 smart contracts platform, Acala Network aims to fuel Polkadot’s DeFi hub. Contrary to Ethereum gas fees, which are determined by the market and Polkadot’s canary network by analogy, Polkadot is driven by computer algorithms that pay a fair amount.

Acala Network was the winner of the Kusama’s first parachain auction. This happened after Coinbase-backed Acala Network had won the Kusama parachain auction. Polkadot’s parachain auctions will be held early in November. You can win 100 slots among the projects using Polkadot.

Acala will secure its spot on Polkadot via a crowdloan prior to the much-anticipated parachain auctions. Acala supporters also get the ACA tokens in compensation for their crowdloan. In exchange, they lock their DOT tokens up for two years.

Furthermore, Acala’s recently launched Liquid Crowdloan Dot (IcDOT). An unlocked token, which represents the contribution to their DOT, is also available for early contributors. After securing an Acala slot, Polkadot will also be awarded a fair portion of Acala’s ownership.

James Wo, CEO of Digital Finance Group, said.

Acala is the financial doorway for Polkadot and we are proud to support such a revolutionary project, serving the growing demand for Web 3.0’s financial hub…Karura has shown great success in the Kusama parachains, and we expect an even more promising future for Acala, one of the most well-developed blockchain projects.

Bette Chen, from Acala said that Digital Finance Group continues to support Acala Crowdloan and its strong leadership in the acceleration of decentralized economies. Further, they continue to receive support from the DFG as they strive to fulfill their mission to increase financial access, opportunity and outcomes for all people in the world.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.