3.4 C
London
Thursday, April 22, 2021

Equilibrium raises $ 2.5 million to secure support for Polkadot parachain’s candidacy

Must read

UK Time Newshttps://www.uktimenews.com
UK Time News is your daily dose of Latest News, Entertainment, Music, Fashion, Lifestyle, World, Cricket, Sports, Politics, Tech, Business News Website. We provide you with the Latest Breaking News Straight from the UK & all around the World on different categories.

Equilibrium, a Polkadot-based decentralized financing project and candidate for parachain, has raised $ 2.5 million from a number of venture capital funds primarily involved in the Polkadot ecosystem.

Polkadot’s heavy backers like KR1, Signum Capital and Hypersphere Ventures have joined Equilibrium’s turn. Other participants in the general crypto investment ecosystem include OKEx’s Block Dream Fund, Genesis Block Ventures, CMS Holdings, AU21 Capital, DFG Capital, PNYX Ventures, FBG Capital, LD Capital, and more.

The funding round comes as Equilibrium gears up for the upcoming parachain lease auction on Polkadot. The project says the investment will help secure a parachain location, which it says will require DOT 1 million, currently worth $ 40 million, committed to the protocol. Although the funds raised by Equilibrium do not cover the entire sum, the overall support provided by the main players in the ecosystem means that the project expects some of the investors to commit part of their DOT for the loan. participatory Equlibrium, as CEO Alex Melikhov told UKTN.

READ  Top 5 cryptocurrencies to watch this week: BTC, ETH, BNB, DOT, EOS
READ  FIL on the rise: next Filecoin production cut changes tokenomics

Crowdloan is a token distribution mechanism intended for use by most parachain candidates for auctions. It is based on DOT holders who stake their assets on the parachain rental contract, which entitles them to an allocation of project tokens. The mechanism is somewhat similar to extracting liquidity from Ethereum, which has become the preferred method for distributing new project tokens in DeFi. Crowdloan is nonetheless designed for a longer term engagement as the staked DOT cannot be withdrawn until the end of the 12 or 24 month rental period, depending on the preference of the community.

READ  Courageous browser to join the dedicated Binance Smart Chain Defi wallet

Equilibrium is one of the contenders for Polkadot’s DeFi-centric parachain, along with other projects like Acala and Moonbeam. Its flagship product is a MakerDAO-type protocol for generating guaranteed stablecoin. The Equilibrium protocol introduces innovations such as bailsmen mechanics, which formalize the process of liquidating bad debts at the protocol level. The project also hopes to leverage Polkadot’s cross-chain support to support a large number of assets.

READ  Bitcoin Cash antitrust lawsuit dismissed with prejudice
READ  Art in orbit: Kevin Abosch takes NFTs to the stars

Equilibrium is currently active as an independent, substrate-based blockchain with an Ethereum bridge. Becoming a parachain remains a key objective of the project, as it would make it possible to fully realize its vision of interoperable money markets.

Securing a parachain is also essential to enable integrations with other DeFi projects, including collaboration with Moonbeam and upcoming plans to integrate Curve, a decentralized exchange optimized for wrapped asset exchanges, into its blockchain.