Coinbase Ventures Backs Acala on Polkadot
Coinbase's venture capital arm will contribute to one of Polkadot's top projects.
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Coinbase Ventures is funding Acala, a DeFi hub for the Polkadot network, according to a blog post from the company.
Coinbase Will Support Acala
“This week, the investment arm of Coinbase has announced their support for Acala, the all-in-one DeFi hub of Polkadot,” Coinbase wrote in its blog post. “This investment also supports Karura, the DeFi hub of Kusama being built by the Acala team.”
Coinbase did not say how much it will invest in each project, or how those funds will be used. However, it did note that Acala will need to win a parachain slot auction on Kusama and Polkadot in order to launch. Presumably, this funding will support those bids.
Acala is designed to support its own DeFi applications as well as others. Upcoming applications include LDOT staking, the Acala dollar stablecoin (aUSD), the Acala DEX, and a project treasury. Acala is also EVM-compatible, meaning it can support code and tokens originally created on the Ethereum blockchain.
Polkadot Ecosystem Is Growing
Polkadot is currently a leading blockchain. It hosts the sixth largest cryptocurrency, DOT, with a market cap of $34 billion.
However, Polkadot has not yet attracted many highly visible projects. Acala is one of its most notable projects, and the latest round of funding from Coinbase could produce a stronger Polkadot ecosystem.
Despite Coinbase’s financial support for projects in the Polkadot ecosystem, the exchange does not yet list Polkadot’s DOT token.