Polkadot eco-slot auction participation process explained in detail

The most comprehensive and detailed explanation of the Polkadot slot auction participation process

Trade your own risk.

Risk warning: This article was created only for personal enjoyment and sharing of DeFi, does not represent and constitute any investment financial and information advice, enter the market at your own risk, investment needs to be cautious, at your own risk.

Polkadot Introduction
Polkadot Eco has been deployed for nearly a year, and finally opened the first round of slot bidding this month (as of 2021.6.22), the first slot of Polkadot Eco test network Kusama has been successfully bid by Acala first network Karura.

Regarding the detailed interpretation of Polkadot’s ecology, there are already many professionals who have made in-depth analysis, so we will not make a tedious introduction here, but first use a more vernacular analogy to help you understand the full picture of Polkadot first.

Background
Ether provides users with “one-click coin issuance”, while Polkadot provides developers with “one-click chain issuance”.

The expansion of Ether has always been a hot topic, especially with the outbreak of DeFi, the congested network and high Gas have been criticized, and even become a resistance to the development of DeFi, if project parties want to arbitrage Ether, there are basically only three ways out: ① choose to migrate to layer2; ② choose a new public chain with EVM; ③ make a new public chain by themselves. Among them, option ①② can be realized in a simpler way, while if you choose option ③, although you can freely control it, the development cost will undoubtedly require higher development and operation costs, and the difficulty of developing a public chain is higher.

POLKDOTPolkadot ecology is different from the above solutions. Gavin Wood, the founder of Polkadot (former CTO of Ether), proposed a new idea to solve the problem of expansion by being compatible with different public chains, and to provide a better underlying architecture to help developers achieve “one-click chain issuance “(Gavin developed a brand new blockchain in 15 minutes with an original factory MAC computer at the Web3 Summit in 2018, which showed the dawn of public chain development) Making a public chain of our own means no longer relying on the performance limitations of the Ethernet public chain, just like pulling a dedicated line from the ISP room of telecom directly to our own home. It is like pulling a dedicated line from the ISP room of telecom to our own home, which is definitely a qualitative improvement in security and speed.

Ecological Composition
The composition of the wave ecology is divided into three parts: parallel chain, relay chain and transit bridge.

Polkadot eco-slot auction participation process explained in detail

Parallel chain: As the name suggests, it is an independent public chain, which is independently developed by project developers in the ecology, uncoupled from other parallel chains, developing their own public chains and developing their own ecological projects on their public chains, and the project side of Polkadot ecological card slot auction is the parallel chain.

Relay chain: The nerve center of Polkadot ecology, which plays the role of intermediate hub and can be understood as the central brain of Polkadot ecology, used to manage and verify each parallel chain and ensure the security of ecological network.

Adapter Bridge: Also known as heterogeneous parallel chain, the parallel chains of normal Polkadot ecology are connected through slots, which is an “adapter” to connect all the networks of blockchain, and is used to connect public chains outside Polkadot ecology, more than Ether

By reading these three concepts, we can understand the whole picture of Polkadot. For Polkadot itself, we can understand it as the underlying nerve center or CPU, which is used to connect various public chain modules of the blockchain network, realizing the interconnection of all chains of the blockchain network ecology, the real big infrastructure.

We can consider the Polkadot network as a galaxy, the relay chain is its rotating core (such as the role of the sun), the parallel chain is every planet of different sizes, and the transit bridge is the wormhole connecting other galaxies.

The slot auction we talk about today refers to this wormhole. With slots, project parties can connect and interact with the core hub, otherwise they lose the support of the ecology and their public chains lose their meaning.

How to participate in the slot auction
Tips_Advance Network: It refers to the test network, i.e. Beta version. The underlying architecture and code are the same as the main network, Polkadot ecology proposes this concept mainly to ensure the safety and stability of running on the main network, and to run on the test chain in advance to discover its hidden loopholes and problems, Polkadot’s advance network is Kusama, which is the Beta version of Polkadot. Of course, each parallel chain Kusama deployment test network is also its own first chain. That’s why the content of the newsletter says that Acala’s first network was successfully bid in Kusama.

As an ordinary user to participate in Polkadot ecology, there are 2 main ways.

1) Gain from holding coins in secondary market

Along with the prosperity of Polkadot ecology and the growth of demand for crowdsourced loans from various parallel chains, the price of KSM/DOT will also fluctuate up periodically, which does not need too much explanation, it is a simple spot holding revenue.

Polkadot eco-slot auction participation process explained in detail

2) Participation in slot auctions

Currently, the capacity of Polkadot ecology is limited, so parallel chains need to obtain the rental status by bidding for slots, and the rental period is generally 1 year.

This mechanism ensures that its bidding process is decentralized and all projects can initiate a Crowdloan campaign, while providing a channel for ordinary users to participate. All users can participate in the Polkadot ecosystem as a VC and vote for their favored projects.

Slot Auction Mechanism
Parallel Chain slot auctions follow an optimized candle auction format where participants do not know the end time of the auction, preventing those strategies of bidding the highest price at the last minute to get a more accurate representation of the price of the slot bids.

1) Teams upload their parallel chain code and begin bidding through a continuous 6-week lease range and the number of KSMs they are willing to lock in for the selected lease period.

2) Open bidding will be ongoing during the auction. Teams can see what other projects are bidding and increase their bids over time to remain competitive throughout the auction.

3) At the end of the auction, the exact moment the auction ends is determined randomly by a verifiable random function (VRF).

4) The amount of KSM bid by the winning team remains locked for the duration of the lease period and can be unlocked upon expiration. Parallel chains are automatically connected to the relay chain at the beginning of the lease period.

5) Teams can extend the lease period by winning another auction before the end of the current lease period.

About Crowd Lending
1.Crowd Lending Rules
1)Bidding Introduction

Each parallel chain can initiate a crowd lending campaign, and any user can support it by depositing a specified number of tokens. Similar to the node voting of other i-projects, crowd lending is often made into slot auction voting, and the voting method is to pledge KSM/DOT to the corresponding parallel chain project.

All slots are not completed in a one-time auction, but released in batches for auction. Each parallel chain can continue crowd lending for a long time during the whole slot auction cycle, and there is no need to re-initiate even if the bid is not successful the first time.

2) Return of invested tokens

Once tokens are put into pledge, they can only be retrieved in two stages.

Successful bidding: retrieved at the end of the slot lease period, but successful bidding will generally give the project tokens as a reward from the project side, and the rewarded token assets can be used for trading circulation before the lease ends

Failed bid: Due to the rule mechanism in (1), parallel chain can continuously participate in the whole bidding cycle, so the failed bid also needs to wait for the end of the whole slot auction activity, and the tokens can be retrieved. Generally parallel chain projects will also give instant reward tokens after users put in pledged tokens. Regarding the instant reward tokens, when they can be circulated depends on the specific project planning.

*Note: All crowdloan activities are handled by its Crowdloan protocol, and voting can only be accessed through two entrances: the official Parallel Chain / Polkadot official crowdloan activity page. There is no need to transfer money to any individual wallet account.

  1. Rewards for participating in Crowdloan
    Participating in the crowd loan activity is not the traditional single coin pledge mining, but only locking the tokens, and you can get them back at any time before the bid is successful, without any fees; if the bid fails, you can directly unlock the tokens and get them back.
Polkadot eco-slot auction participation process explained in detail

If the auction is successful, the tokens will be locked until the end of the slot lease period, and the project will generally issue tokens to the addresses participating in the auction according to the ratio of contribution, etc. Of course, the reward rules vary from one parallel chain to another, and each parallel chain project will also design invitation rewards and other games in order to get more traffic support.

The operation process of participating in the auction
Polkadot main network is not yet online, currently all auctions are slots of Kusama chain, and the following operation flow only talks about the participation of Kusama chain auctions

The overall operation process is divided into two main parts and three steps, two parts are: fund preparation + project selection, three specific steps: create Polkadot ecological wallet, CEX purchase KSM and withdraw cash, and pledge to the project you support. The following is a practical process according to these three steps.

Since it is more convenient to use PC (convenient to browse the whole project, white paper, contract and other information), the following process is based on PC operation.

Create a Polkadot wallet

Polkadot official wallet address: https://polkadot.js.org/extension/

Polkadot eco-slot auction participation process explained in detail

Click the above address to enter the Polkadot wallet official website, according to your usual browser, select the download portal, because Chrome browser download requires scientific Internet access, here we recommend using Firefox (test firefox open Polkadot official website more smoothly, faster)

Polkadot eco-slot auction participation process explained in detail

After the download is complete, Polkadot wallet will automatically pop up in the upper right corner of the browser, and the plug-in will automatically open to guide the user to create a new wallet account

Polkadot eco-slot auction participation process explained in detail
Polkadot eco-slot auction participation process explained in detail

As shown in the picture, save the helper word (the importance of the helper word is stressed again, must be saved offline by hand to backup), click Nect Step, set the new user name and confirm the password to save, after the creation is complete, you can speak in the Polkadot wallet home page

Withdraw coins to Polkadot wallet

Considering the risk issue, the process of withdrawing coins will not be described too much for now, provided that you already hold certain KSM tokens in CEX, you can directly enter the withdrawal process, take Binance as an example (Huobi is not supported at the moment, OK is not smoothly logged in at the moment), the withdrawal page is as follows, 0 fee, but the minimum withdrawal is 1

Polkadot eco-slot auction participation process explained in detail

The withdrawal page is as follows

You need to go back to Polkadot wallet to get the withdrawal address, and you must note that the withdrawal address is not the address we see on the wallet home page.

Polkadot eco-slot auction participation process explained in detail

This problem is also what I encountered in my actual experience (I used the default address to withdraw, and waited for about half an hour, prompting that the transfer address is illegal). To ensure that this is done in one step, you need to set up the Polkadot wallet as follows

Select a Polkadot account – click the three dots on the far right to expand the settings – switch Allow use on any chain to Kusama Realy Chain

Polkadot eco-slot auction participation process explained in detail

After the switch is completed, the address of the account will be changed as follows, and the wallet address is the official Kusama receiving address.

Polkadot eco-slot auction participation process explained in detail
Polkadot eco-slot auction participation process explained in detail

Check your account balance at: https://polkadot.js.org/apps/#/accounts

The first time you enter, the wallet authorization will pop up automatically, you can see the account balance details after authorization

Polkadot eco-slot auction participation process explained in detail

Participate in Binance
Entrance

Polkadot official crowdlending project list: https://polkadot.js.org/apps/#/parachains/crowdloan

On this page you can see all the projects that are currently being crowlorded, and at the bottom of the page you can see the completed bids for the Acala first website Karua

The details of the rewards for each project’s crowdfunding activity can be accessed by clicking Homepage to view the details on the project’s official website, as follows.

Polkadot eco-slot auction participation process explained in detail

Meanwhile, in this list, we can directly click the Contribute button for KSM pledge support. Note that the minimum number of KSM required to be pledged here is (the unit of measurement on the right is milli, i.e. 0.001) 99.999*10^-3=0.099 KSM, so the minimum pledge is 0.1 KSM

Polkadot eco-slot auction participation process explained in detail

You can enter the homepage of the project by clicking on the Homepage to know the details of the crowd loan, for example, click on the homepage of the first project in the list, Bifrost, to enter the website of the project and check the details of the crowd loan reward

Polkadot eco-slot auction participation process explained in detail
Polkadot eco-slot auction participation process explained in detail

The bottom of the page will also announce the official channels of participation.

Polkadot eco-slot auction participation process explained in detail

Pledges

Following the example above, we choose to participate in the pledge directly on the project website (the first time you enter the website, a wallet authorization pops up, click to confirm and then you can go to the next step)

Polkadot eco-slot auction participation process explained in detail

Take the minimum pledge amount of 0.1KSM as an example, enter it, click on mint and you will see the fee prompt

Click coin minting again to confirm

Polkadot eco-slot auction participation process explained in detail

After you click Confirm, wait a few seconds, Polkadot wallet will pop up a prompt, click the [Sign the transaction] button to confirm the authorization, a prompt of the pending status will appear on the top right

Polkadot eco-slot auction participation process explained in detail
Polkadot eco-slot auction participation process explained in detail

Within 10 seconds, the transaction will be completed, very fast!

Polkadot eco-slot auction participation process explained in detail
Polkadot eco-slot auction participation process explained in detail

Summary
The above is a comprehensive overview of the current Polkadot eco-slot auction. Since the tokens invested will be locked for a certain number of weeks once you participate in the auction, it is important to choose the project, which requires us to make a comprehensive judgment based on the project’s investment background, ecological planning, market enthusiasm, community activity, etc.; at the same time, it is recommended to prioritize the selection from the infrastructure category when choosing the project.

This time, we will not talk about the analysis of specific projects, you can familiarize yourself with the operation through the above process, it is recommended to go to the official website of each project after the in-depth white paper and then do the planning of the pledge position, if you plan to hold KSM tokens for a long time, you can try multiple projects light position pledge 1 KSM, as a joy bean, at least the coin principal will not be lost. There may be a windfall.

I will continue to pay attention to Polkadot ecology (after all, I myself you have a heavy position in DOT at the top of the mountain …) If you have a parallel chain project that you want to understand, you can come together to exchange and seize the opportunity of Polkadot, and you are welcome to correct any misinterpretation in the article.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/polkadot-eco-slot-auction-participation-process-explained-in-detail/
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.

Like (1)
Donate Buy me a coffee Buy me a coffee
Previous 2021-06-29 23:25
Next 2021-06-29 23:47

Related articles