Home News DFG piles $12.6M into Astar Network’s Polkadot parachain bid

DFG piles $12.6M into Astar Network’s Polkadot parachain bid

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The first-ever parachain auction on Polkadot is heating up, with the Polkadot ecosystem’s top projects contending for the coveted first spot.

DFG Group, a global blockchain investment business with $1 billion in assets under management, said on November 15 that it has donated 300,000 DOT tokens ($12.65 million) in favour of Astar Network’s parachain proposal.

To achieve its sharded proof-of-stake ecosystem, Polkadot will leverage parachain auctions. Projects participate in auctions to obtain a parachain or shard on the Polkadot network by bidding huge quantities of DOT for the period of the parachain slot’s lease. Users that donate dot to their parachain auction bids get governance tokens from competing projects.

Astar Network, formerly Plasm, is competing on Polkadot to construct a decentralised application hub that supports Ethereum Virtual Machine (EVM) and Web Assembly-based smart contracts.

The commitment allows users to engage in parachain auctions on both Polkadot and Kusama

The commitment was made using Bifrost’s Slot Auction Liquidity Protocol (SALP), which allows users to engage in parachain auctions on both Polkadot and Kusama, according to the statement on Nov. 15.

The SALP platform from Bifrost lets users participate in a variety of parachain auctions. While also delivering liquid staking derivatives for their underlying DOT contributions.

“Aside from a very strong team, Astar tackles a fundamental interoperability issue and links Polkadot with Ethereum. Which will draw a large number of experienced teams to this ecosystem,” DFG Founder and CEO James Wo said.

Polkadot, Kusama, Avalanche, Solana, and Near are just a few of the innovative and growing protocols. In which the firm has invested early.

The inaugural Polkadot parachain auction, which began on November 11, now has Astar in third place. According to Dotmarketcap, which is following the auction proceedings, Astar has bet a total of 6.6 million DOT valued at roughly $281 million for their crowdloan.

With 30.7 million DOT committed at almost $1.3 billion, Acala Network is presently leading the crowdloan race. With 30.6 million DOT secured, Moonbeam, an EVM-compatible smart contract platform, is a close second.

In early November, before the sale, DFG also promised 500,000 DOT to Acala.

The initial auction will continue through November 18th. And the winner will be selected using the Dutch candle technique. With the exact time of the auction’s closing determined retrospectively at the end of the bidding period.

The projects that win one of Polkadot’s initial five parachain spots will go online on Dec. 17 and will remain in that slot until their lease period expires.

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