How can ordinary people participate in the Polkadot mainnet parachain auction soon?

After the end of the “Wanxiang Blockchain Week” last year, we wrote a long article (portal) of nearly 10,000 characters around the Polkadot ecology to detail the operation mechanism of the parachain auction and analyze the different attitudes of the various parties in the ecology. .

How can ordinary people participate in the Polkadot mainnet parachain auction soon?

That time, the outbreak has only just at the application layer Ethernet Square emerge, not yet spread to the major emerging ecology. With the mainnet launch and continuous breakthroughs in market value, Polkadot’s popularity can be described as unparalleled, and the popularity and appeal of related offline activities are also alone.

After a year, with EVM compatibility, huge economic incentives and other model measures, the emerging public chain ecology has achieved a large-scale explosion, and the market has continued to rise. The popularity of Avalanche and NEAR offline activities this year is the most intuitive proof. . On the other hand, Polkadot seems to have been walking in its own development rhythm, and has not adjusted its pace due to the drastic changes in the external competitive environment.

In the past year, Polkadot has gone through the mock auction of the testnet Rococo V1 and the multiple rounds of actual auctions on the pioneer network Kusama . After a long period of testing and evaluation, the mainnet’s slot auction was only accepted. Arranged on the agenda- with the smooth passage of governance proposal #118, the Polkadot mainnet has confirmed that it will launch the first round of parachain auctions on November 11. Affected by this positive stimulus, DOT’s recent secondary market performance has been quite strong. The $50 mark was finally broken, and the historical high was rewritten.

How can ordinary people participate in the Polkadot mainnet parachain auction soon?

When the auction is approaching, the different roles within the ecology have already been gearing up, ready to show their fists. On the one hand, the long-awaited founders of the major projects are successively publishing their own crowd-lending incentive plans, hoping to grab the top spot in the upcoming auction; on the other hand, after the previous Kusama auction, many users who participated in the crowd-lending Both have made a lot of money, which has also attracted more users to focus on the upcoming mainnet auction, hoping to get a share of the pie.

However, due to the differences between Polkadot’s underlying structure and infrastructure and other public chains, the parachain slot auction and related crowd-lending gameplay are also the first in the entire blockchain world, and many investments that have never been exposed to Polkadot After purchasing DOT chips, the readers often fall into the confusion of not knowing how to operate in the future, and they are even more confused when faced with various auction derivative schemes.

In order to solve this problem and make it easier for more users to participate in the auction crowd loans on Polkadot’s main network, Odaily Planet Daily has compiled the main channels for participating in crowd loans, hoping to help you. It needs to be clear that this article does not involve any investment advice, nor does it recommend users to vote for a specific project. How to choose a specific project? Users are also asked to research on their own, based on the comprehensive strength, past performance, incentives, and Weighted judgments such as unlocking rules.

The most common method: official channels

The official channel is obviously the most common way to participate in auction crowd loans. The basic requirement for adopting this channel is that the user must use the Polkadot .js wallet and need to have at least 5 freely disposable DOTs in the wallet.

How can ordinary people participate in the Polkadot mainnet parachain auction soon?

The current mainnet auction has not yet officially started, but if no surprises, the general crowd lending operation process will be consistent with the Kusama pioneer network. As for the detailed operation method, Polkaworld, a Chinese community on the head of Polkaworld, previously recorded a middle version of the tutorial (portal). Those who are interested can watch the video directly to understand. After the mainnet auction starts, replace the Kusama network with The main network is fine.

Although the official channel provides the most common participation path, this channel is still cumbersome for most users who plan to participate in crowd loans. Therefore, when there are other options, we do not recommend users to be on the chain. Operate directly on.

The most convenient method: third-party services

At the current stage, the Parachain slot auction is undoubtedly the largest value flow scenario in the Polkadot ecosystem except for pledges. Therefore, for some third-party organizations based on traffic, this is obviously a cake that should not be missed.

The third-party service agencies mentioned here can be roughly divided into two types: one is a third-party wallet, such as Math Wallet, Polkawallet, Nova, etc., and the other is a centralized exchange, such as OKEx, Binance, Kraken, etc. Wait.

First of all, let’s talk about third-party wallets. In the previous Kusama Xiannet auctions, many wallets have launched auction-related tools. It is expected that related services will also be opened in the next Polkadot mainnet auction. The auction tool of Maizi Wallet (for Kusama network) in the following figure is an example. This tool integrates the real-time auction information of various projects, and users only need to select the target investment amount.

How can ordinary people participate in the Polkadot mainnet parachain auction soon?

As for the centralized exchange, everyone is more familiar with it. Exchanges such as Kraken and Kucoin have all supported auction crowd lending on the Kusama network. Now, as the mainnet auction approaches, more mainstream exchanges have joined this camp.

How can ordinary people participate in the Polkadot mainnet parachain auction soon?

On November 3rd, OKEx and Binance successively launched the warm-up campaign for Polkadot mainnet auctions. OKEx has already supported users’ early bird voting on three projects including Acala, Astar, Moonbeam, and Binance announced that it will open Moonbeam, Clover, Astar, Acala, Manta, Litentry, Support channels for nine projects such as Bifrost, Efinity, Parallel, etc. , and plan to provide 30 million US dollars worth of rewards for warm-up participating users. Regarding Binance’s service plan, there is another very interesting point. Let’s sell it for the time being. We will explain it in the next section.

Although third-party services can provide users with the simplest and most convenient way to participate in crowd lending, it should be noted that if some purely centralized service channels are used, whether the expected benefits can be successfully recovered depends entirely on the operating conditions of the third party. . In addition, the versatility of third-party services will be less than that of official channels, and may not cover all auction items. For example, both OKEx and Binance mentioned above only support some bidding projects, which also means that when users want to support other niche projects that also have great potential, they may not be able to adopt this solution.

The most flexible method: liquidity derivatives

Parachain slot auctions and crowd-lending mechanisms give DOT coin holders an opportunity to use the chips in their hands to grab more profits, but for some coin holders, there is also a big concern about this mechanism: Participating in crowd lending requires that DOT be fully locked in the entire slot lease period, which means that within 1-2 years of rent, the DOT liquidity invested by users will be locked, which may cause a certain opportunity cost loss. In order to solve this problem, some ecological projects have successively launched liquidity derivative solutions.

In terms of service scope, the current mainstream liquidity derivative solutions can be divided into special-purpose derivative solutions and general-purpose derivative solutions.

The dedicated derivative scheme refers to the liquidity derivative scheme launched by a project and only serves its own project. The representative scheme is the lcDOT launched by Acala. Through this program, after users cast DOT to Acala, they will receive a freely flowing amount of lcDOT. lcDOT represents the DOT’s equity certificate that will be unlocked in the next two years. The advantage of this solution is that Acala will use its own DeFi product matrix to build usage scenarios for lcDOT, which means that lcDOT holders can mortgage their lcDOT, or in Acala’s decentralized AMM-DEX Exchange, increase the opportunity to capture additional revenue.

How can ordinary people participate in the Polkadot mainnet parachain auction soon?

The general derivative scheme refers to a liquid derivative scheme that is launched by a certain project but can also provide services for other projects. Representative schemes include SALP by Bifrost, Auction Loan by Parallel, and xDOT by Equilibrium. The focus is on here The first two programs.

Let me talk about the SALP made by Bifrost. The full name of this solution is the “Slot Auction Liquidity Protocol” (Slot Auction Liquidity Protocol). The biggest difference between SALP and other solutions is that when users pledge their DOT through the SALP agreement, they can obtain two derivatives of vsDOT and vsBond. Among them, vsDOT is a completely homogenized token, which represents a voucher pledged by users to parachain crowd loans, which can be traded at any time or cooperated with vsBond for 1:1 redemption after the end of the parachain lease; vsBond is not completely homogenous. Its attributes represent the crowd loan rewards obtained by users for supporting bids for different projects, so the vsBonds obtained for different projects are also different. For example, supporting Acala and Moonbeam will generate different vsBond-Acala and vsBond-Moonbeam (for example, The project does not necessarily adopt the SALP scheme).

How can ordinary people participate in the Polkadot mainnet parachain auction soon?

In the previous second round of slot auctions on the Kusama Pioneer Network, SALP provided liquidity support for four projects including Basilisk, Altair, Parallel, and Kintsugi. It is expected that these projects and other changes will be further provided in the mainnet auction. Multiple projects provide bidding support. (On November 3, Bifrost announced a partnership with Litentry, a decentralized identity aggregator.)

As for the Auction Loan made by Parallel, in addition to releasing the liquidity of pledged assets (in the Auction Loan scheme, the derivative token is called cDOT), Parallel will provide a certain PARA token reward for each DOT cast through the scheme , Which makes the finishing rate of return of the scheme greater than other derivative schemes under the same circumstances, which is also the biggest highlight of the scheme.

How can ordinary people participate in the Polkadot mainnet parachain auction soon?

At present, Parallel has announced that it will provide liquidity derivative services for two projects such as Astar and Litentry, with up to 36% and 10% of additional rewards respectively for users who vote for these two projects through Auction Loan.

In the previous article, we sold a key to Binance’s third-party service. In fact, what I want to say is that Binance will also adopt similar liquidity solutions. The specific plan is to issue derivative tokens BDOT to DOT through its channels. After the end of the lease period, BDOT can redeem DOT 1:1.

The heroes gather, the war will start

The above are some of the main parachain auction participation channels compiled by Odaily Planet Daily. In general, different solutions have their own advantages and disadvantages. How to choose, please compare and judge by yourself.

After going through multiple rounds of actual combat exercises on Kusama, most users must have summed up some experience and methods on how to maximize their own profits, and they will only be put into practice in the mainnet auction. For the project team, the main network auction is obviously the most important battle, so more energy must be put in preparations to seize the limited number of early slots.

Today is November 4th, eight full days before Polkadot officially launches the first phase of the Parachain slot auction. Let us wait and see who will be the first to break through the crowds. Odaily Planet Daily will also continue to follow up on the latest developments in the Polkadot ecology.

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