Coinbase Ventures, the venture investment arm of Coinbase, a major US crypto exchange, has announced funding in the Defi (Decentralized Finance) project Acala based on Polkadot (DOT).
Acala is a project that plans to provide Defi services on Polkadot to achieve interoperability of different blockchains. It aims to become a hub for Defi and will use this investment to continue project development.
Acala is developing a Layer 1 blockchain optimized for Defi, and its network is compatible with Ethereum (ETH) virtual machines (EVM).
The core products are the following 4.
- Stablecoin Acala Dollar (AUSD).
- AMM type decentralized Exchange (Acala DEX).
- Staking service for DOT.
- Decentralized Fund (DSWF).
In Polkadot, there is a network called Kusama. This is a network with a structure similar to Polkadot, and it is used to experiment with new ideas because updates can be performed faster than Polkadot.
Acala aims to build a network called “Karura” as a Defi hub on Kusama. Karura is a network written in almost the same code as Acala, and Coinbase Ventures says it will also financially support Karura.
To connect to Polkadot, it is necessary to acquire a slot at auction. Acala won the fastest Slot on Polkadot’s test net last month and will continue to develop to connect to the main net as quickly as possible to become a hub.
We welcome @Coinbase Ventures to our ecosystem with their backing of Acala & @KaruraNetwork for our DeFi platforms coming soon to Polkadot and Kusama.https://t.co/zBL62dsbTp
— Acala – DeFi Hub of Polkadot (@AcalaNetwork) April 1, 2021
Investment of Coinbase Ventures
Coinbase Ventures has invested in several cryptocurrency and blockchain projects.
Coinbase Ventures recently invested in Vega, a decentralized derivatives trading protocol. Vega has successfully raised a total of $500 million.
Coinbase Ventures has also invested in Compound, a Defi lending service, DODO, a decentralized exchange, TaxBit, a software company that develops cryptocurrency tax payments, and CoinDCX, an Indian cryptocurrency exchange.
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