Kusama Parallel Chain Auction is coming up. Which Crowd-Loan Assets are worth focusing on?

As a holder of KSM tokens, which parallel chains should I focus on? How to calculate the final revenue? What is the bidding strategy of each parallel chain project owner?

The parallel chain auction of Kusama, which has been expected for half a year, will finally meet with us, and the final auction plan will probably be announced at the Polkadot Decoded Conference today. And how to calculate the final revenue? What is the bidding strategy of each parallel chain project? Today we will share around these questions.

The Polkadot Decode community online meeting will start at 21:45 BST on May 19 and will most likely announce the Kusama parallel chain development details. On May 20 at 3:30 BST, Gavin will have a friendly “pub chat” with Aeron Buchanan and Alistair Stewart, where Gavin will probably announce the Kusama parallel chain auction details in person.

Kusama uses Auction to release slots, and the vast majority of parallel chain teams will choose to crowdfund their slot leases using Kusama’s built-in Crowdloan mechanism, which allows investors to back the parallel chain with their own KSMs in order to receive token rewards from the parallel chain.

So, which Crowdloan assets should we focus on? What are the characteristics of these parallel chain projects? And what kind of rewards will they offer for this crowdfunding? I have listed six parallel chains here, and they are Acala, Plasm, Kilt, Bifrost, Crust, and Phala.

Parallel chains to watch

1) Acala Network

Project Description.

Acala is the world’s first decentralized open financial alliance and Polkadot eco-finance center, aiming to create an open financial framework by uniting the Polkadot ecosystem to bring financial stability, liquidity and accessibility to global crypto assets, and has launched core Layer 1 modules such as Honzon protocol for stable coins collateralized by multiple assets across chains, Homa protocol for releasing Staking asset liquidity, and decentralized exchanges.

Project Features.

Acala is the DeFi Hub in the PoC ecosystem and the infrastructure equivalent of the DeFi space. Mainly includes several large modules: the first is a decentralized over-collateralized stablecoin (aUSD) system, equivalent to the Maker DAO of the PoC ecology, for over-collateralized stablecoin issuance.

The second is the decentralized asset swap, an automatic market maker based on the AMM mechanism, equivalent to Uniswap providing the DEX function for the PoC ecology.

The third is to release the liquidity of Staking, through this module, users can exchange their pledged tokens in the main network for intermediate tokens (L-KSM/L-DOT) into circulation to improve capital utilization.

Bidding strategy.

a) Token information

Main network: Acala Network (ACA), with a total ACA of 1 billion.

Advance network: Karula Network (KAR), with a total KAR of 100 million.

b) Bidding strategy

Karula bidding will give about 11% of the total KAR as reward. Users can interpret this as a “Paradrop”, assuming 100 KSMs are locked, at least 1200 KARs will be awarded, if it is 1:12 (at least) according to the one-year period, at least it means that it may be more. 30% will be released immediately after the network goes live, and the remaining 70% will be released linearly, block by block, according to the one-year lock-up period.

2) Plasm Network

Project Description.

Plasm Network is a Polkadot-based multi-VM, scalable, interoperable smart contract parallel chain. plasm supports layer 2 scaling contracts including Optimistic Rollups and ZK Rollups, and is compatible with both Ether Solidity smart contracts and WASM smart contracts. Plasm has a unique DApp Staking and Operator Trading mechanism that allows developers to profit from developing on Plasm and sell the rights to operate their own contracts, while community members can continue to earn through DApp Staking.

Project Features.

First, Plasm is the first smart contract platform within the Polkadot ecosystem to implement EVM+WASM multi-virtual machine, which means existing projects based on Ethernet Solidity smart contracts and emerging projects based on WASM smart contracts can be directly migrated/deployed on Plasm.

Second, it is also the only project within the Polkadot ecosystem that supports Layer 2. However, I believe the above two points are likely to be implemented in more projects in the medium term future.

Third, the most groundbreaking and innovative feature of Plasm is its unique DApp Staking and Operator Trading mechanism. This will allow developers to earn revenue by developing on Plasm, while community members can share the dividends through DApp Staking. In addition, developers will be able to sell smart contract operating rights on the chain.

Bidding strategy.

a) Token Information

Main Network: Plasm Network

Pioneer Network: Shiden Network, total 45 million issued, SDN and PLM 1:1 correspondence.

b) Bidding strategy

It is planned to reserve 30% of the total SDN supply for Kusama card slot auction. For the first slot auction with a 48-week lease period, 15% of the total SDN tokens, or 6.75 million SDN tokens, will be given back to the users of the locked KSM who support Shiden’s bidding.

3) Kilt Protocol

Project Description.

KILT open source blockchain protocol to standardize the way to describe and prove any type of characteristics of individuals, organizations and even things become possible. Its use in Web 3.0 to publish statement-based verifiable, revocable anonymous credentials for applications to provide user data sovereignty and interoperability.KILT has the potential to build new business models around trust.

Project Features.

What Mr. Gu Yanxi said about Kilt Protocol: The Kilt project is focused on providing authentication in a distributed manner. The identity authentication function is a must for large-scale financial applications. The current DeFi application, although hot, is still a financial transaction between anonymous users. Therefore it is not possible to scale up the application on a large scale. In contrast, Kilt’s project is able to provide participant authentication in a distributed manner, and the granularity of authentication is more fine-grained than that in existing physical entities. Therefore Kilt will be widely adopted. Obviously the market has a clear judgment on this and therefore has already started to support Kilt as a parallel chain in the polka ecology.

Bidding strategy.

Kilt Protocol has not yet given a detailed bidding strategy. Earlier on February 16, Ingo Rübe, CEO and founder of Kilt Protocol, shared their plans for the next few months, mentioning their bidding plan but not detailing the reward mechanism.

You can check this article for details, https://www.jinse.com/blockchain/999338.html.

4) Bifrost Finance

Project Description.

Bifrost (Rainbow Bridge) is a PoC eco-DeFi base protocol that strives to be an infrastructure for providing liquidity for pledged assets and is currently launching derivative vToken for Staking and PoC parallel chain slots (PLO).

Project features.

First, the first liquidity derivative was launched in Q4 2020: vETH. vETH is designed for participating Ether 2.0 users, holding vETH is equivalent to participating in Ether 2.0 pledges while gaining income and being able to trade or participate in DeFi applications at any time during the lock-in period. Until today, a total of 17,788 ETH of vETH minting value has been accumulated through two vETH minting airdrops, which is equivalent to a total locked position market value of $27M. The connection to the parallel chain will launch the universal liquidity derivative vToken, which is compatible with most PoS public chains and continues to run according to the already developed logic and token economy model.

Second, SALP (Slot Auction Liquidity Protocol) will be launched during parallel chain bidding to address the opportunity cost lost by participating in parallel chain pledges.

How does SALP work? After participating in the Kusama parallel chain auction through Bifrost, users can obtain two assets through the SALP protocol: vsKSM and vsBond. vsKSM represents the KSM tokens pledged in the parallel chain slot and can be traded at any time with vsKSM, which can be traded in DEX and CEX in the future; vsBond represents the equity attached to the participation in the parallel chain auction. vsBond represents the equity attached to participation in parallel chain bidding.

How is the vsKSM price guaranteed? Some may think that the SALP protocol is in fact leveraged and will cause the price of the asset vsKSM to drop significantly, but it does not. We know that vsBond issued for each parallel chain will have a redemption period, and after expiration, you can only redeem KSM one for one as long as you hold vsKSM with vsBond, which means that as long as you buy vsKSM at a lower price in the market, you can get KSM one for one when your vsBond expires, and the difference in the middle is the arbitrage space. Bifrost is the first parallel chain to use the SALP protocol.

Bidding strategy.

a) Token Information

16.2 million (after 10 years), 5 million in current circulation

b) Bidding strategy

No prior network

1 KSM : X BNC reward (X will be announced at the beginning of the official phase, ratio at least greater than 1 KSM : 10 BNC).

5) Crust Network

Project Description.

Crust provides a decentralized storage network for the Web3 ecosystem, supporting multiple storage layer protocols including IPFS and providing interfaces to the application layer.Crust’s technology stack is also capable of supporting a decentralized compute layer.Crust aims to build a distributed cloud ecosystem that values data privacy and ownership.

Project Features.

First, off-chain data storage. Some blockchain-based applications such as NFT, decentralized social platforms, etc., business will involve a large amount of user data, and the amount of on-chain storage cannot load these huge data. Developers can integrate Crust based on Crust/IPFS network for some decentralized blockchain full node data storage solutions.

Second, P2P content distribution networks. With the Crust network incentive layer protocol, nodes in the Crust network will spontaneously proliferate CDN files in the network and take up the responsibilities of edge nodes, bringing faster data delivery. Users can use Crust to provide content distribution and acceleration for some decentralized video, social media sites, software and personal private sharing.

Third, decentralized website and DAPP deployment. Developers can deploy their own Dapp and website based on Crust/IPFS network. Developers only need to focus on the construction of Dapp and website without managing any server, and with high availability, high security and low cost. Currently Uniswap and PolkaApps website deployments have been migrated to Crust. next phase Crust hopes to have more websites deployed decentrally through Crust.

Bidding strategy.

a) Token information

b) Bidding strategy (no prior network)

Rewards for KSM contributors will be issued in the form of airdropped CRUs, with a tentative ratio of 1:0.07 per week. i.e. contributors will receive 7 CRUs per week for every 100 KSMs, and rewards will continue to be issued until the set time for crowdsourced lending has expired or until the bid is won.

Crust has set aside 40% of the community development tokens for activities related to the parallel chain slot auction. This number is about 2 million CRUs. this 2 million CRUs is not used up at once, it includes auction incentives, possible purchase of DOT, and future lease maintenance and many other costs.

6) Phala

Project Description.

Phala Network is a license-free and de-trusted privacy computing cloud. Phala is built on Substrate and operates as a parallel chain to the Polka ecosystem to provide computing power comparable to existing cloud services and to protect the privacy of hosted programs. Based on Phala’s hybrid TEE-blockchain architecture, developers can easily deploy and run Phala Confidential Smart Contracts within the TEE region of the CPU.

Project Features.

Phala Network leverages Polkadot’s cross-chain capabilities to become a data privacy layer for other blockchain applications, such as DeFi transaction positions, transaction history confidentiality, DID privacy data federated computation, and light node cross-chain bridges. phala’s high-performance contracts make it possible to build privacy computing clouds that provide trust-free high concurrency, big data analytics for Serverless computing services for highly concurrent, big data analytics. Cloud products in development include decentralized Google Analytics replacement Web3 Analytics and more.

Bidding strategy.

a) Token Information

Phala Network, PHA, total issuance of 1 billion

b) Bidding strategy

Participation in the auction reward situation KSM:PHA = 1:100. the PHA reward pool is capped at 15 million PHA, i.e. after Phala reaches 150,000 KSM support, no further rewards will be given to backers.

How to interpret the bidding strategy of each parallel chain?

Take Crust Shadow as an example, we know that rewards are given out in the form of airdrop CRUs for KSM contributors, and the tentative ratio of rewards given out each week is 1:0.07. i.e. contributors get 7 CRUs per week for every 100 KSMs, and the rewards will continue to be given out until the set time for crowdsourced lending is over or until the bid is won.

So, what is this annualized return?

The current CRU token price is $66 and the KSM token price is $530. Let’s assume that by the moment Crust Shadow gets the parallel chain, the CRU price is $70 and the KSM price is $600. Crust Shadow participates in the bidding for the polka slot in the first round, and officially wins the parallel chain slot in the sixth round, and you participate in the bidding for the slot backing Crust Shadow with 100 KSM.

Kusama Parallel Chain Auction is coming up. Which Crowd-Loan Assets are worth focusing on?

So, what is the annualized return of your 100 KSM tokens?

Let’s first calculate how much you will get. If you pledge 100 KSM from the beginning you will get: 1000.075670=14700 USD. The annualized return is: 14700/6000011100=269.5%

If the CRU price rises to $140, then the annualized return will be as high as 269.5% * 2 = 539%, and it is almost risk-free.

The most important parallel chains are summarized here below. You can follow the above calculation method, and then combine different parallel chain characteristics to combine a suitable bidding strategy for yourself.

Aggregate

Number

Project (Token)

Advance Network (Token)

Project Features

Bidding Reward

1

Acala, ACA, total issue 1 billion

Karula, KAR.

100 million total issuance

1) decentralized over-collateralized stablecoin (aUSD) system.

2) decentralized asset swap, automatic market maker based on AMM mechanism.

3) Release of Staking’s liquidity.

About 11% of total KAR as reward; one-year lock-in reward of at least 1:12.

2

Plasm, PLM.

Shiden, SDN, total issue 45 million, SDN 1:1 counterpart to PLM.

1) Smart contract platform with EVM + WASM multi-virtual machines.

2) The only project that supports Layer2 in Polkadot ecology.

3) Unique DApp Staking and Operator Trading mechanism. (Operator Trading / Dapps Reward Mechanism / Multiple Locked Airdrop)

Shiden has reserved 30% reserve for Kusama network auction. The first auction uses 15% of SDN (6,750,000 SDN). By locking in KSM for 11 months (1-8 consecutive cycles), all crowdfunding and auction participants receive SDN tokens.

3

Kilt Protocol, KILT, 1 billion total issuance (Phase 1), 2 billion maximum supply (issued after 50 years)

No prior network

The Kilt project focuses on providing authentication in a distributed manner, laying the foundation for decentralized financial compliance and large-scale adoption.

None at this time

4

Bifrost, BNC, 16.2 million total issue (after 10 years), 5 million currently in circulation

No Advance Network

Bifrost (Rainbow Bridge) is a PoC eco-DeFi base protocol, committed to be the infrastructure for pledged assets to provide liquidity, currently launching derivatives vToken (vsKSM/vsDOT/vsBond) for Staking and PoC parallel chain slots (PLO).

1 KSM : X BNC Reward (X will be announced at the beginning of the official phase with a ratio at least greater than 1 KSM : 10 BNC).

5

Crust Shadow, CRU, total issue 20 million

No prior network

1) Staking maintains the GPoS consensus of the Crust network; 2) used to guarantee the selected nodes; 3) as contractual guarantee and commission for providing resource services; 4) as a transaction fee for using the network; 5) can be used to purchase resource services; 6) can be used for campaigning and voting on the on-chain governance mechanism and voting on proposals.

Each contribution of 100 KSMs will earn 7 CRUs per week, and rewards will continue to be awarded until the set time for crowdsourced credits to be earned expires or until the bid is won.

6

Phala Network, PHA, total issuance of 1 billion

Khala Network, no new tokens will be issued independent of PHA

Phala Network leverages Polkadot’s cross-chain capabilities to become a data confidentiality layer for other blockchain applications, such as DeFi trading positions, transaction history confidentiality, DID privacy data federated calculations, and light node cross-chain bridges.

Participation bidding reward profile KSM:PHA = 1:100. the PHA reward pool is capped at 15 million PHAs, i.e. after Khala reaches 150,000 KSMs of support, no further rewards will be given to backers.

7

Moonbean (Glimmer), GLMR, with a total issue volume of 10 million.

Moonriver, River, 10 million total issues.

Moonbean is compatible with Ethernet EVM virtual machines, and developers can quickly migrate DeFi on Ether to the efficient and low cost Moonbeam platform. Developers are able to deploy existing Solidity smart contracts on Moonbeam with minimal code tweaks, or develop new ones on the Moonbeam chain using existing proven Ether development tools applications, thus entering the PoC ecosystem.

Not available at this time

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/kusama-parallel-chain-auction-is-coming-up-which-crowd-loan-assets-are-worth-focusing-on/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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