Polkadot-based DeFi protocol Acala raises $7 million

The Polkadot-based DeFi protocol Acala raised $7 million through the sale of SAFT contracts as part of a Series A funding round.

Participants in the round include Pantera Capital, Digital Currency Group, 1confirmation, Arrington XRP Capital and Polychain Capital.

Learn more about the Acala DeFi suite’s core functionality and how our parachain being built on @Polkadot removes the need for users to make a choice between staking yield and DeFi yield. https://t.co/kxp2pRFDsP

— Acala Network (@AcalaNetwork) August 27, 2020

“We were early and large investors in Polkadot and are confident that Acala will become the center of DeFi for the entire ecosystem,” said Paul Veradittakit, a partner at Pantera Capital.

The Acala team says their Polkadot-based parachain will remove the need to choose between staking rewards and DeFi yields from locking funds in DeFi protocols.

The Acala team has focused on developing a suite of DeFi products, including a decentralized stablecoin called aUSD, a non-custodial exchange, and a staking-derivative contract.

The project also issued the governance token Acala Network Token (ACA). The Acala model is similar to MakerDAO.

The developers said that over three weeks on the testnet they locked assets worth $52 million. The mainnet will launch on Polkadot and Kusama.

Earlier, Algorand announced an update to its protocol, which will expand the platform’s capabilities in supporting complex DeFi applications, scalable to \”tens of millions of transactions per day\”.

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