Acala Protocol received 32.5 million DOT worth $1.27 billion, winning Polkadot’s first parachain auction. The smart contract platform, sold as Polkadot’s DeFi hub, announced the news late Thursday after a seven-day auction.
With over 32M DOT contributed by over 81,000 community members, Acala has won the first parachain auction on @Polkadot!
Thank you to everyone who took part in this historic event. (1/3) pic.twitter.com/CL2jCwA9Re
— Acala – DeFi Hub of Polkadot (@AcalaNetwork) November 18, 2021
Acala Protocol wins first Polkadot parachain auction with over 32M DOT staked
Acala is one of the top projects built on Polkadot. It hopes to become the home of DeFi on the network, with plans to roll out products like an automated market maker, liquid DOT staking, and a decentralized stablecoin called aUSD. Acala is also optimizing interoperability with the Ethereum Virtual Machine (EVM).
Acala raised a total of 32.5 million DOT, worth approximately $1.28 billion from 81,218 contributors. Based on the total DOT received, Acala will distribute 105,893,309.1 ACA tokens to its community of contributors. Additionally, 24,116,159.8 LCDOT tokens will be distributed to crowdloan backers for use in the Acala Network. LCDOT is a liquid token that represents DOT while it’s locked up.
Dan Reecer, VP of Growth at Acala, said that while the team had no expectation to win, but that it was pleased with the outcome.
“We knew that the Polkadot community is thriving and incredibly supportive of all the parachains. We worked hard to educate the community, onboard them to the Polkadot wallet, and support them through the process, so it’s fantastic to see over 81,000 participants supporting Acala in the end”, he stated.
As the proceeds are classified as crypto debt, Acala would eventually need to pay back the DOT it had solicited from investors. Users’ DOT is locked for the duration of the rental agreement for Polkadot’s parallel chains up for sale.
The first parachain auction launched last week and saw fierce competition between Acala and the cross-chain platform Moonbeam. Soon after launch, both projects had raised millions of DOT tokens, significantly outpacing every other entrant by a significant margin. Interestingly, data from DotMarketCap shows that Moonbeam received more DOT than Acala with 34,161,504 tokens contributed, but Acala won due to the candle auction format.
As AZCoin News reported, the first group of parachain auctions will take place weekly from November to December, with the next auction starting today. The original 11 positions were put up for auction. The second auction will start on December 23 and take place every two weeks. Each will be due within the past seven days.
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