Acala has raised over 9.6 million DOT ($ 510 million) through a crowdloan and is about to win the first round of the Polkadot Parachain auction

The Acala decentralized financial protocol has raised over 9.6 million DOTs (valued at $ 510.5 million at $ 52.9 at press time) from over 55,000 subscribers and will most likely win the first Parachain auction on Polkadot.

The source: acala.network

Unlike regular crowdfunding rounds, Acala’s funding mechanism is a crowdfunding mechanism, which means that it will ultimately have to pay back the “crypto debt” it has taken on from the crowd.

On Friday, the developers at Polkadot added the first Parachain to their network since Bitcoin magazine reported. Parachains are custom, project-specific blockchains that can be integrated into the main blockchain. The most outstanding feature of Polkadot is the cross-consensus message format. Essentially, it will allow users to send and receive assets and execute smart contracts between parachains. However, this technology is currently still in a strong development process.

During the crowdloan, users deposit their DOT in a digital safe and receive two tokens when they start. The first is the native Acala (ACA) token, which is used for transaction fees, staking, incentive nodes, governance, and maintenance of the protocol. The utility token has a firm offer of 1 billion and is fully minted in its starting block.

Investors receive the second token, Liquid Crowdloan DOT (lcDOT). Each lcDOT represents a basic DOT that is locked in the crowdloan. Among the many features, users can use lcDOT as collateral to mint Acala USD (aUSD), the network’s native stablecoin. Within two years, users can redeem their blocked DOT with lcDOT.

Earlier this year, Acala developers started a test network and went through the Trail of Bits security audit. In the audit report, Trail of Bits highlighted the lack of documentation and implemented functions related to the project. An economic review of the project is still ongoing. For Polkadot, the token’s market capitalization hit an all-time high before the Parachain was launched.

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According to Cointelegraph

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