Coinbase has announced that it will be supporting the Acala Ecosystem, “all-in-one DeFi hub of Polkadot”. Coinbase will also support the DeFi hub of Kusama, ‘Karura’. The one which is being built by the Acala team.
Both the DeFi ecosystems are ready to launch, which means that users will be able to enjoy the various applications from day one of the launch, as stated by Dan Reecer,Acala’s VP of growth. Explaining the launch process, Dan further says:
The Acala team’s path to launch is multi-fold and incorporates the support of its community. The team will first need to win a parachain slot auction on Kusama to launch Karura, then will need to win a parachain slot auction on Polkadot to gain a slot for Acala to launch.
As per the announcement, “Acala is an EVM-compatible layer-1 blockchain specially optimized for DeFi ecosystem. The Acala team has built an array of DeFi applications. Acala has enabled four core products on the blockchain: Liquid DOT staking (LDOT), the multi-collateralized stablecoin, Acala Dollar (aUSD), an AMM decentralized exchange called the Acala DEX, and Acala’s decentralized sovereign wealth fund (dSWF), which enables network controlled value on Acala.”
Whereas, Karura on Kusama will provide DeFi products to the Kusama community. Karura will bring “the Karura Dollar (kUSD), Karura’s AMM-style DEX, and liquid KSM staking (LKSM) to the Kusama ecosystem, in addition to being an EVM-compatible layer-1 chain.”
Karura aims “to win the very first slot on Kusama’s network for Karura, in order to provide essential, foundational financial products that can be leveraged by all other parachains and DApps that will launch on the network.”
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
Both the teams are vigorously engaged in the preparation of the two blockchain networks, Polkadot and Kusama as they are nearing the auction of their first parachain slots. Polkadot and Kusama have succeeded to get the support and considerable attention from retail investors. DOT, the native cryptocurrency of the Polkadot ecosystem, stands at a total market capitalization of $35 billion. Kusama ranks 32nd by market cap with a total value of $3.9 billion.
Having the support of Coinbase Ventures is itself an achievement as it has supported several successful projects in the past. Some of the most prominent investments include BlockFi, Compound, and Etherscan.