The Acala Polkadot Crowdloan explained

Learn how to contribute to the Parchain auction of the Acala team and the possible ROI of the Investment

6 min readNov 7, 2021

Acala is the decentralized finance network and liquidity hub of Polkadot. It’s a layer-1 smart contract platform that’s scalable, Ethereum-compatible, and optimized for DeFi with built-in liquidity and ready-made financial applications

The Acala Polkadot Project, older brother of Kusama’s Karura, is one of the most promising and well known projects of the Polkadot ecosystem. Karura won the first available parachain slot on the Kusama network by a long margin, and by the looks of it Acala will do the same.

Not only are they giving out 17% of the total ACA tokens for the crowdloan, but they are also providing multiple ways to increase the obtained rewards via referral links and other activities like the Acala Quests, which give you an extra 2% rewards and a shiny NFT.

Most importantly, they are giving lenders who decide to support their project with DOT the chance to obtain lcDOT or liquid crowdloan DOT, on a 1:1 proportion to the contributed DOTs. This means that you will not loose the liquidity on your Polkadot after blocking them onthe crowdloan for two years, and that you will be able to sell the liquid dot in case you want to.

If you do this, when the 2 years of the parachain lease end, your remaining liquid dot will get converted back to normal Polkadot. In my eyes this is a very clever move from Acala, as one of the main pain points of providing tokens to a parachain is the iliquidity of those assets for two years.

By giving users the chance to use this lcDOT concept I think Acala has secured itself the 1st parachain slot even more.

You can use the following code to get an extra 5% on your Acala rewards:

0xfcf96b58557aed1dbf21845aaf2ef221e7aea1ff829cf16407bef74201569d54