COINBASE VENTURES, the investment vehicle of the COINBASE EXCHANGE, has invested in a Layer-1 Blockchain design that when complete will bring full service DeFi to POLKADOT. The investment is split between ACALA and KARURA, however neither the amount of the investment nor the allocation thereof has been disclosed.
ACALA, designed to support not only its own DeFi operations but others (through its EVM - Ethereum Virtual Machine, which allows it to support tokens and code native to the Ethereum Blockchain), has already developed four projects for POLKADOT: a project treasury; Liquid Dot staking; the ACALA Decentralized Exchange; and, the ACALA Dollar Stablecoin. KARURA has constructed a DeFi ecosystem likewise built by ACALA on KUSAMA, POLKADOT'S canary platform.
It has been reported that both ACALA and KARURA are ready to be launched. As such, both applications will be available for use on day one. Nonetheless, KARURA must win a parachain auction slot to be included on KUSAMA and ACALA must win a parachain auction slot to be included on POLKADOT. In this regard, it should be noted that both POLKADOT and KUSAMA are nearing the auction phase for these parachains. Through presumption and conjecture, the COINBASE VENTURES investment is designed to facilitate the auction process for both ACALA and KARURA. And if successful in the auction process, the full service DeFi to be provided is amplified by the interoperability of the POLKADOT/KUSAMA system and the potential for inter chain development of new investment vehicles greatly enhanced.
Given the portfolio of past successful investment projects backed by COINBASE VENTURES, the investment in ACALA and KARURA is a significant achievement for both. The present investment derives its significance as the past projects by COINBASE VENTURES referred to include COMPOUND, ETHERSCAN, and BLOCKFI, all big names in the space.
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