{"id":216927,"date":"2021-04-01T23:29:22","date_gmt":"2021-04-01T20:29:22","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coinbase-ventures-backing-defi-in-the-polkadot-ecosystem\/"},"modified":"2021-04-01T23:29:22","modified_gmt":"2021-04-01T20:29:22","slug":"coinbase-ventures-backing-defi-in-the-polkadot-ecosystem","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coinbase-ventures-backing-defi-in-the-polkadot-ecosystem\/","title":{"rendered":"# Coinbase Ventures backing DeFi in the Polkadot ecosystem"},"content":{"rendered":"

“# Coinbase Ventures backing DeFi in the Polkadot ecosystem <\/strong>”
\n<\/p>\n

Coinbase Ventures, the investment arm of the San Francisco-based digital currency exchange, has thrown its weight behind a layer-one blockchain designed to bring full-service DeFi to the Polkadot ecosystem.<\/p>\n

The investments are focused on Acala, the Ethereum Virtual Machine-compatible blockchain that is building a host of DeFi capabilities on Polkadot, as well as Karura, which is building a DeFi ecosystem on Kusama. Acala has already built four core products for the Polkadot ecosystem: Liquid DOT staking, a stablecoin, an automated market maker decentralized exchange and a sovereign wealth fund. <\/p>\n

The amounts allocated to Acala and Karura were not disclosed.<\/p>\n

According to Dan Reecer, Acala\u2019s VP of growth, both Acala and Karura are launch-ready, which means the aforementioned app<\/a>lications will be available to users on day one. He explains<\/a> the launch process as follows:<\/p>\n

\u201cThe Acala team\u2019s 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.\u201d<\/p><\/blockquote>\n

Polkadot and Kusama are both nearing the auction phase for their first parachain slots.<\/p>\n

Receiving backing from Coinbase Ventures is viewed as a significant achievement, given the array of successful projects the VC has supported in the past. Some of Coinbase Ventures\u2019 most prominent investments include BlockFi, Compound, and Etherscan. <\/p>\n

Polkadot and Kusama have attracted considerable attention from retail investors over the past year. DOT, the native cryptocurrency of the Polkadot ecosystem, is a top-ten project with a total market capitalization of $35 billion. Kusama, meanwhile, is ranked 32nd by market cap with a total value of $3.9 billion.<\/p>\n