Digital Finance Group (DFG), a global blockchain and digital asset investment firm, has allocated 500,000 DOT to Acala. The Polkadot blockchain network is at the heart of the Acala ecosystem, which is a DeFi platform. Polkadot’s upcoming parachain auctions provide Acala with an excellent opportunity to bid for a parachain slot.
According to DeFi pulse, by October 2021, the total value of DeFi had increased from $1 billion in 2018 to $98 billion. This allows the ecosystem to restructure aspects of the fundamental infrastructure, such as payments, lending, and investing.
The astronomical gas fees on Ethereum are one of the most significant barriers to widespread adoption of DeFi. As a result, DFG’s substantial investment in Polkadot aims to address these issues.
Furthermore, multichain blockchain founder Gavin Wood recently announced a $774 million fund for the development of novel ideas.
Acala Network, on the other hand, hopes to fuel Polkadot’s DeFi hub with its layer-1 smart contracts platform. Unlike Ethereum gas fees, which are determined by the market, Polkadot and its canary network are driven by computer algorithms and have a constant fair fee.
Acala Network won the first parachain auction on Kusama in June after Coinbase-backed Acala Network won the first parachain auction on Kusama in June. Polkadot’s parachain auctions will take place in early November. There are 100 slots available among projects built on the Polkadot platform.
Acala intends to use a crowdloan to secure its spot on Polkadot before the highly anticipated parachain auctions. Furthermore, Acala supporters receive ACA tokens as payment for the crowdloan. This is notable in exchange for locking their DOT tokens for two years.
In addition, Acala’s newly launched Liquid Crowdloan Dot (IcDOT). Early contributors can also use an unlocked token to represent their DOT contribution. Furthermore, when Polkadot launches Acala after securing a slot on the platform, it will award a fair share of ownership of the Acala network.
According to Digital Finance Group CEO James Wo,
Polkadot’s financial gateway is Acala, and we are proud to support such a groundbreaking project, which will meet the growing demand for Web 3.0’s financial hub… Karura has demonstrated great success in the Kusama parachains, and we anticipate an even brighter future for Acala, one of the most advanced blockchain projects.
Furthermore, Bette Chen of Acala stated that Digital Finance Group’s support for Acala Crowdloan “continues its strong leadership in accelerating decentralized economies.” Furthermore, the DFG remains committed to assisting them in achieving their mission of improving financial access, opportunity, and outcomes for all people worldwide.