Umbrella, the decentralized oracle network, has published details of its recent initial DEX offering (IDO) by revealing that 110,000 applicants signed up for the offering on Polkastarter.
It has been reported that the offering saw 10 times the amount of hopefuls sign up as the 1,000 randomly selected slots available, with 2.5 million UMB tokens being distributed to only 625 participants during the sale.
However, the IDO raised 72.5 Ether worth around $250,000. Umbrella emphasizes that the token sale was intended to limit the concentration of tokens among large holders, taking “deliberate steps to ensure strong participation at fair prices.”
Samuel Kim, the founding partner of Umbrella, said:
“This offering represents another key step in bringing decentralized oracle networks to an industry where demand for high-quality external data is growing exponentially.”
“We firmly believe in the power of community governance and decentralized solutions, and we will use this critical moment to move forward toward the next steps in Umbrella Network’s evolution.”
The report said that Umbrella asserts that its delegated proof-of-stake consensus model ensures highly cost-effective data transmission. By leveraging a decentralized network of nodes, Umbrella claims it can individually validate “thousands of transactions for the price it would take to confirm a single transaction.
The IDO of decentralized oracle network Umbrella Network saw record participation on Polkastarter, with more than 110,000 prospective investors vying for limited spots in the offering. https://t.co/GYpDvVNxyK — Cointelegraph (@Cointelegraph) February 24, 2021
Also, the project uses a layer-two scaling solution that leverages Merkle Tree technology to consolidate multiple data points within a single on-chain transaction to mitigate the high costs of transacting on the Ethereum mainnet.
As per the sources, Umbrella plans to run on Polkadot in the future. Polkastarter is a cross-chain DEX designed to facilitate token auctions and pools.
Thus, the platform has recently grown in popularity as a platform for IDOs, owing to its support for cross-chain token swaps, fixed-price offerings, and KYC integration.