One of Polkadot’s top ventures will receive funding from Coinbase’s venture capital arm.
Acala will be sponsored by Coinbase.
Coinbase’s investment arm, Coinbase Capital, revealed funding for Acala, Polkadot’s all-in-one DeFi portal, in a blog post this week. This investment also helps to fund Karura, the Acala team’s DeFi center in Kusama.
Coinbase did not specify how much it would spend in each project or how the money will be spent. However, in order to start, Acala will have to win a parachain slot auction on Kusama and Polkadot. Those bids are likely to be sponsored by this funding.
Acala is designed to support both its own and third-party DeFi applications. LDOT staking, the Acala dollar stablecoin (aUSD), the Acala DEX, and a project treasury are among the upcoming applications. Acala is also Ethereum Virtual Machine (EVM) compliant, which means it can run code and tokens built on the Ethereum blockchain.
The Polkadot Ecosystem is Expansion
Polkadot is a leading blockchain at the moment. It is home to the sixth most valuable cryptocurrency, DOT, which has a market capitalization of $34 billion.
Polkadot, on the other hand, has yet to attract several high-profile projects. One of the most well-known projects is Acala, and the new round of funding from Coinbase could further improve the Polkadot ecosystem.
Despite Coinbase’s financial support for Polkadot ventures, the DOT token has yet to be listed on the exchange.