Tag: Parachain Auction

Parallel Finance Wins Polkadot’s Fourth Parachain Auction

by Cryptobriefing

Key Takeaways

  • Parallel Finance won Polkadot’s fourth parachain auction today.

  • Contributors staked 10.75 million DOT tokens via crowdloan worth more than $300 million.

  • Parallel Finance (and the others in this auction batch) will begin its lease on its slot in just over a week.




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Parallel Finance has won Pokladot’s fourth parachain auction. It joins the other winning projects: Acala, Moonbeam, and Astar.

An Ecosystem Sprouts

Parallel Finance has emerged as the winner of Polkadot’s fourth parachain auction, securing its spot in the Polkadot ecosystem for almost two years. Polkadot parachains are individual blockchains that integrate into the main Polkadot Relay Chain via “slots” and are interoperable with each other through bridges.

Projects compete to win slots through the process of parachain auctions. To win a slot in the Polkadot ecosystem’s parachain auctions, contributors and investors cast votes by staking DOT tokens. To win its slot, Parallel Finance garnered over 10.75 million DOT tokens total, which was equivalent to around $306 million. 



Its founder, Rubo Yuan, expressed gratitude toward contributors for “helping us to become part of the Polkadot ecosystem by securing a parachain.”

This made Parallel Finance the project with the third-largest DOT contribution in the Polkadot parachain auctions so far, slightly ahead of Astar, which won the third parachain auction. There was a big jump, though, between the first and second winners of the parachain auction–Acala and Moonbeam, respectively. Acala put forward a contribution of roughly 32.5 million DOT, and Moonbeam a contribution of roughly 35.75 million DOT. 

Parallel Finance achieved more contributions than other notable projects vying for a parachain slot, such as the Efinity NFT and metaverse project, which currently sits in sixth place with approximately 4.5 million DOT staked on its behalf. 


Parallel Finance will be awarded its lease on the slot on Dec. 17 of this year, which will last until Oct. 20, 2023. Contributors to the project will be rewarded with the PARA token at a rate estimated to be around 25 PARA tokens per DOT contributed. According to the project’s team, these lock-up rewards will be distributed in nine different batches spread out over the duration of the lease, with the first round slated to be distributed on Dec. 22. 

Parallel Finance is an “institutional-grade” lending protocol for DeFi that launched in April of this year, with major backers like Alameda Research, Sequoia, and Lightspeed Venture Partners. It seeks to “provide unique lending solutions tailored to Polkadot while assuring user safety and security.”

Disclosure: At the time of writing, the author of this piece owned DOT and several other cryptocurrencies. 



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Polkadot’s Parachain Auctions Filling up With Astar Network Winning Third Slot

by Blockchain News

In what is best described as a precedented move, the Astar Network has won the third parachain auction slot on the Polkadot Network.

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With the total number of positions filling up so fast, the capabilities of the Polkadot blockchain are now being stretched, just as it is designed to operate.

Riding on the prior successes of Acala and the Moonbeam networks, Astar Network raised a total of 10,333,552 DOT coins worth approximately $372.9 million to secure the third slot from more than 27,000 contributions. Astar Network will now be joining the limited number of protocols that would be launching with the parachain network later this December. 

Astar Network is formerly known as Plasm Network, and it represents a unique technological offshoot built on the Polkadot network. It is essentially a Substrate Runtime Module Library that allows developers to add Plasma functions to their Substrate chain. By adding an Astar (previously Plasm) Substrate Runtime Module Library, developers can get scalable blockchains within a few minutes. The tailored capabilities of these blockchains now reside with the respective developers to fathom.

Astar Network saw a massive backing in its bid toward the Polkadot auction. While the protocol and the work it is fronting is being acknowledged by Venture Capital firms and angel investors like Binance Labs, PAKA Ventures, and OKEx amongst others, Digital Finance Group allocated 300,000 DOT tokens worth approximately $12.8 million tokens to support the auction bid of the Astar Network back in November. 

Just like other previous winners, Astar Network will be rewarding its backers with its native tokens as the participant’s DOT tokens get locked for the duration in which the auction slot will be opened. There are bound to be two more contenders to make up the predefined 5 slots for the parachains. While the competitions continue to hit up, Clover Finance and Parallel Finance are still amongst the favorites to win the next slots, if the tides do not change in the coming days.

Image source: Shuttstock

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Acala Wins First Parachain Auction Slot on Polkadot

by Blockchain News

Riding on the strength of over 81,000 community members, Acala Network, an Ethereum-compatible smart contract platform optimized for Decentralized Finance (DeFi) won the first parachain auction on the Polkadot network.

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The historic milestone comes after investors committed more than 32 million DOT tokens worth more than $1.28 billion. The DOT was donated as loans to the Acala Network and is billed to be repaid by the platform with extra incentives in the form of the protocol’s native token, ACA.

The Polkadot Network is an inter-chain decentralized and smart chain protocol that fuels the movement of assets between its parachains. The network’s council floated the first parachain for auction and is billed to see five different protocols becoming the first set of platforms to be launched on December 17.

With Acala’s win, four more projects are now in the bid to secure a similar spot in the coming days.

“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,” the protocol said in a tweet. “It’s a testament to the strength of @Polkadot that so many talented teams are in the running to be among the first five projects to launch on Dec 17. In this respect, we’re all winners. We’re looking forward to kicking off the multi-chain future with you!”

The second parachain auction is ongoing with Moonbeam, an Ethereum (ETH) compatible smart contract platform designed for building interoperable applications on track to win the second spot. While the protocol is still under development with its main net billed to launch before the end of the year. 

Thus far, Moonbeam has garnered a total of 34.2 DOT worth $1.36 billion, advancing its position alongside other protocols including Clover Finance, and Manta Network amongst others. The surging demand for the DOT token is projected to boost the price of the coin in the coming weeks.

Image source: Shutterstock

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Polkadot unveils $770M development fund ahead of parachain auctions

by Cointelegraph

Polkadot founder Gavin Wood has unveiled a $777-million development fund ahead of the network’s parachain lease auctions.

Wood tweeted on Sunday that Polkadot’s treasury has allocated more than 18.9 million Polkadot (DOT) (worth roughly $777 million at the time of writing) to a development fund that will be disbursed through community governance.

Wood gave broad suggestions as to how the funds might be spent, stating the capital will be mobilized to realize the community’s vision for “building, improving, educating” Polkadot’s ecosystem, in addition to “anything else that the Polkadot governance believes valuable.”

According to Polkadot’s Wiki, the treasury funds can be spent if approved by the council, which votes on proposals put forward to them. The Polkadot council currently consists of 13 members, however, the council plans to expand to 24 seats at some stage in the future.

With many Polkadot governance votes seeing poor community participation in the past, the development fund may be intended to bolster DOT holders’ engagement with the governance process. According to Polkassembly, three governance proposals put forward this past week have seen total voter turnouts of zero, six and seven votes, respectively.

Stakeholders wishing to put forward a proposal must reserve a deposit of at least 5% of the proposed spend, with the deposit being either slashed (a burn mechanism to deter validator misbehavior) if rejected, or returned if accepted. With funds being placed at risk in the event of an unsuccessful vote, Polkadot’s slashing mechanism may be a factor impeding governance engagement on the network.

The new development fund was also revealed just weeks before Polkadot’s highly anticipated parachain auctions, which are scheduled to begin in early November, suggesting the funds could be intended to kickstart development targeting Polkadot’s forthcoming parachain ecosystem.

Polkadot’s parachain auctions will be used to realize Polkadot’s vision for a sharded ecosystem. The auctions will see projects building on Polkadot compete to secure one of the 100 parachain slots by bidding to lock up DOT.

Parachains are Polkadot’s sharded side-chains that can host decentralized applications and protocols, offer specialized computation, and communicate with Polkadot’s proof-of-stake Relay Chain to finalize transactions.

Polkadot’s existing Relay Chain exclusively processes transfers, governance and staking services for the Polkadot network, with the forthcoming parchains being tasked with providing advanced features such as smart contract functionality and cross-chain compatibility.

As such, the new development fund may be intended to encourage developers to begin building on Polkadot in preparation for parachains going live.

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Many onlookers have singled out the Coinbase-backed Acala Network as a frontrunner to win the first parchain slot on Polkadot. Karura Network, Acala’s deployment on Polkadot’s sister network, Kusama, won the first parachain auction on Kusama by a significant margin in June.

Karura pulled support from more than 15,000 entities to win its slot with a bid more than 500,000 Kusama (KSM) (worth roughly $184 million at the time of writing).