On November 1st, DOT broke the price resistance of 44$, and culminated in DOT reaching a new All Time High(ATH) price range of 54$. The big news behind DOT’s price escalation is the announcement that teams can very soon register their parachains and open the Crowdloan process.
Dot’s price touches a new ATH 23% from 44$ to 54$. Chart form tradingview
When teams begin their parachain Crowdloan event the community of DOT Holders can lend out their DOT, which will be locked in a smart contract(virtual vault) in Polkadot’s relay chain and be used by respective participating teams to bid in the parachain slot auctions, where the team who bids the highest amount of DOT wins a parachain slot.
As the Polkadot community has been waiting for the Parachain Crowdloan event, this news that teams can register their parachains and begin their Crowdloans soon obviously resulted in DOT’s price escalating to new ATH levels.
DOT community members who lend out their DOT to support their favorite project team to win the parachain slot auction, are guaranteed to get tokens of the project team in proportion to their Crowdloaned DOT contritributions, if the team they support wins a parachain slot.
Incase, the team they support does not win a parachain slot, their crowd loaned DOT would be returned trustlessly by the virtual vault. So by participating in the crowdloans, a investors’ DOT is not spent away, it either brings investors new project tokens or they get their DOT contributions back.
So, the enthusiasm of the Polkadot community got reflected in Dot’s November 1st price rise.
This news got me more energised to monitor news of Acala daily, because I am lending out my DOT in the crowdloan to Acala, for more than just the project’s ACA tokens.
Generally, the DOT that investors lend out in crowdloans will be locked till the lease period of the parachain slot that the project team has won, which is 2 years.
However, Acala for its Crowdloan event gives another option for investors who want to utilize the liquidity of their crowdloaned DOT.
Here, investors can lend out their DOT through the Acala Liquid Crowdloan vault, instead of lending their DOT out through the Crowdloan module. If they do that they get lcDOT which is liquid crowdloaned DOT that they can use in Acala DEFI as collateral and avail aUSD which is Acala’s decentralised stable coin and participate in various DEFI activities.
Investors can also swap their lcDOT for DOT if they want their DOT back before the 2 year period. So, it’s great that I don’t actually lose access to my contributed crowdloaned DOT, and can use it in DEFI or even get back my crowdloaned DOT tokens any time before the long 2 year period ends.
All this is a great deal by itself but I stand to get more if I complete Acala Quest, an interactive game that guides and prepares the supporting community for the Acala crowdloan event.
By default I have already completed three tasks in Acala Quest which was - to create a Polkadot account which I already did by creating a polkadot{.js} extension wallet, my wallet address that I plan to use to send DOT to the Acala Liquid Crowdloan vault has DOT for me to contribute in the Acala crowdloans and I have also subscribed to the Acala news letter.
Completed 3 tasks of Acala Quest that’s preparing me to participate in the Acala Crowdloan event
Now, I have just 2 more tasks to complete to be rewarded with an exclusive Acala NFT and get ACA token bonuses for completing the Acala Quest.
Two more tasks for me to complete in Acala Quest to win ACA Bonus and an Acala NFT!!
Wow...so I stand to get a NFT soon, which is a novel crypto experience for me because I have never owned an NFT asset. The two tasks left for me to complete the Acala Quest is actually to contribute DOT in Acala Crowdloans and then claim my free Acala NFT and bonus ACA token rewards.
This is going to be a pretty awesome experience for me, participating in Acala Crowdloans and I am looking forward for it.
Thank you for reading!!
