The first Polkadot parachain auction has ended. The race was tight but Acala DeFi Hub is the winner of this first slot.
Acala took the first spot from Parachain Polkadot, ahead of Moonbeam who came in second.
The auction ended on November 18. Acala took home the award with 32.5 million DOT with an estimated value of $ 1.3 billion put into play to support the project.
Acala declared that more than 81,000 community members have contributed to crowdloan allowing the project to become the first parachain on Polkadot. However, DotMarketCap reports that there were 44,723 contributions.
Despite this discrepancy, the result is still the same.
After the win, the Acala team said they were embarking on a hiring wave looking to expand multiple areas. These include engineering, products, operations and growth.
Acala is a full-fledged DeFi hub for the Polkadot ecosystem. He has plans for a stablecoin called Acala Dollar to seed DeFi cross-chain and a DEX on Polkadot.
2nd round of Parachain auction
Acala has just beat Moonbeam by obtaining 65% of its cap of 50 million DOT.
Moonbeam is an Ethereum Virtual Machine (EVM) bridging protocol. It allows Ethereum developers to port smart contracts and dApps into the Polkadot ecosystem. Moonbeam will likely win the second parachain auction which began on November 18.
Meanwhile, it currently tops the second auction with 34.4 million DOT up for grabs with an estimated value of $ 1.4 billion.
The decentralized scaling hub of the Astar Network application layer ranks second. He has 7.7 million DOT pledged worth around $ 303 million.
Participants who stake Polkadot’s native DOT token in support of various competing projects are rewarded with their own native tokens if they win the auction.
The winner of the auction is determined retroactively using the “Dutch candle” method. This method decides when the auction will close after all auctions have ended, preventing last minute manipulations.
Acala and the next four auction winners will all be integrated as official parachains on Polkadot on December 17th.
The price of DOT continues to drop
Polkadot’s native token took a 4.6% hit the day it won, falling below $ 40 for the first time since October 13. DOT is now down 28% from its all-time Nov 4 high of $ 55.
DOT prices have jumped ahead of the auction launch earlier this month. However, they failed to escape the bearish momentum of the current market wide correction.
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