Briefly understand the specific operation process of Kusama Parachain auction.
Recommended reading: ” Selected Links | Parachain test is approaching, is Kusama ready?” 》
Original title: “How to participate in the Kusama Parachain auction detailed steps”
Written by: Polkadot Technical Community
This article mainly uses the example of participating in the Kusama Parachain auction to talk about the specific operation process. The operation of the Polkadot mainnet auction will be similar, except that KSM is replaced with DOT.
User-related concepts
Kusama
Polkadot’s pioneer network basically replicates all the functions of Polkadot’s mainnet, but the cycle is shorter than that of Polkadot’s mainnet (such as faster block production, shorter mortgage unlocking time, etc.), and its token name is KSM.
Parachain slot
All Polkadot projects have a limited number of interfaces to connect to Polkadot. The total number for the next year is estimated to be around 40 slots.
Decentralized wallet
Decentralized wallets mean that users save their own private keys. Decentralized wallets that support Polkadot mainly include imtoken, wheat wallet, and polkawallet. The operation of this article is mainly carried out in a decentralized wallet.
Custody wallet
Custodial wallets refer to exchanges and custodial service providers that save assets on their behalf. Mainstream exchanges and cloud wallets are custodial wallets. They will also launch proxy auction services to help users who are not familiar with decentralized wallets participate in parachain auctions.
Auction
Mainly operated by the parachain project party, users do not need to operate directly, but can pay attention to the auction results, because the results will affect the rewards of Crowdloan for their participation.
Crowdloan
It means that the user lends KSM to the project party to participate in the auction and obtains the token of the project party as a reward.
Users need to select a project to participate and enter the number of locked KSM tokens. These tokens are still in the user’s wallet and are only locked on the chain. There is no security risk, but there is no annualized income from collateral mining.
The user will receive the project party’s token as a reward, and the specific ratio and lock-up time are determined by the project party.
Participation risk
The main considerations include
Participants need to consider whether the rewards obtained can cover the income of KSM’s own mortgage mining for the time and benefits of participating in the lock-up.
It is possible that the project did not successfully acquire the slot, and the redeemed KSM may cause selling pressure on the market.
How to choose a project
Project fundamentals
You can visit the project-related information in Polkaproject.com for research.
General project fundamental research dimensions include: GitHub activity, whether there are mature products available, whether technical documents and tutorials are complete, whether the technical community is active, and whether the project community is active.
Reward information
You can visit the Polkaproject.com page to view the organized reward information and evaluate the benefits yourself.
Period
What users need to pay attention to is the maximum rental period. Kusama’s rental period is 6 weeks. The larger the rental period, the longer your KSM lock-up time.
Hardtop Cap
The maximum amount of KSM that can be invested. If you want to participate in crowd loans for projects with lower hard caps, you need to participate as soon as possible.
Participate in the entrance
High-quality project recommendation
You can find all parachains connected to Kusama in the SubProjects section of PolkaProject. Click to view the details of these projects.
Karura
Karura is Acala’s pioneer network.
Acala is an important DeFi infrastructure in the Polkadot ecosystem, providing Ethereum compatible support for the DeFi project in the Polkadot ecosystem. Acala is composed of the Honzon protocol, a stable currency that supports cross-chain multi-asset mortgages, and the Homa protocol, which releases the liquidity of pledged assets. It aims to bring stability and improve liquidity to global encrypted assets.
At present, Acala has received official financial support from the Web3 Foundation, and has received investment from several world-renowned institutions including Polychain, Hashkey, KR1, etc.
Shiden
Shiden is the pioneer network of Plasm.
Plasm is a scalable DApp platform based on Substrate technology, mainly to improve the scalability of Polkadot.
The Plasm team is one of the first parachain projects connected to the Rococo testnet.
Plasm investment institutions include Binance Labs, HashKey Capital, LongHash Ventures, Digital Finance Group and PAKA Ventures.
Moonriver
Moonriver is the pioneer network of Moonbeam.
Moonbeam Network builds a cross-chain connected DApp, provides a smart contract platform compatible with Ethereum, and can easily build local interoperable applications. It is supported by the Polkadot network and developed by PureStake. With the help of Moonbeam smart contracts and compatibility with the Ethereum development tool set, bridge-based integration can be used to quickly build decentralized applications that can be used with users and assets on the remote chain.
Moonbeam investment institutions include CoinFund, IOSG Ventures, Binance Labs, ParaFi, Coinbase Ventures, Fenbushi Capital, D1 Ventures, Hypersphere Ventures, HashKey, Arrington XRP, A195, KR1, Mechanism Capital, Divergence Ventures, Signum Capital, etc.
SherpaX
SherpaX is the pioneer network of ChainX.
ChainX is an asset cross-chain project in the Polkadot ecology. It will cross-chain mainstream BTC and other external assets into the Polkadot ecology and incubate subsequent derivative financial services. According to the introduction of the official website, ChainX’s goal is to become the asset cross-chain gateway of the Polkadot ecology.
According to ChainX COO Kristen, ChainX plans to use 15-20% of the parliamentary fund and the entire network’s computing power (ChainX native tokens can be mined) to motivate supporters.
Sakura
Sakura is Clover’s pioneer network.
Clover is a Polkadot parachain that provides simple and easy-to-use blockchain infrastructure and creates a one-stop compatible EVM framework for Substrate-based applications.
Clover investors include Polychain, Hypersphere, Bithumb Global and Divergence Ventures.
Darwinia
Darwinia Crab is Darwinia’s pioneer network.
Darwinia Darwinia is a cross-chain bridging network developed based on Substrate, focusing on building a future asset interconnection network, including the non-standard asset auction market, stable currency cross-chain, asset exchange and other fields.
Darwinia’s investors include SNZ, Hashkey Hub, Waterdrip Capital, SevenX, Bitrise Capital, Consensus Lab, etc.
Khala
Khala is Phala’s pioneer network.
Phala Network is a privacy infrastructure on Polkadot. According to the official website, Phala provides CPU privacy computing power to Parachain, DEFI, DAPP and other private data services on Polkadot through the economic mechanism of TEE-POW. Its core products are confidential smart contracts, Polkadot ecological dark wallets, Libra bridge and Web3 Analytics. At present, the Phala testnet has launched a TEE mining competition, and there are currently more than 500 TEE nodes around the world providing privacy computing services.
Phala’s investment institutions include Candaq Group, IOSG Ventures, SNZ, Waterdrop Capital, Coin World, Ruixin Capital, Promise Chain, Incuba Alpha Co., Ltd., Exoplanet Capital, and Blue Mountain Labs.
Crust
Crust Shadow is the pioneer network of Crust.
Crust provides a decentralized storage network for the Web3 ecosystem, supports multiple storage layer protocols including IPFS, and provides interfaces to the application layer. Crust’s technology stack can also support a decentralized computing layer. Crust aims to build a distributed cloud ecosystem that values ​​data privacy and ownership.
According to the Crust white paper, Crust will spend about 40% of its ecological development for Polkadot slot auctions and related expenditures, and will develop a complete parachain auction plan before the auction starts.
Equilibrium
Genshiro is the pioneer network of Equilibrium.
Equilibrium is a one-stop all-in-one, interoperable decentralized finance (DeFi) aggregator, Equilibrium users can only rely on the platform to mortgage cryptocurrencies and earn income, or perform lending and raising funds to provide liquidity Sex.
Equilibrium’s investment institutions include KR1, Signum Capital, Hypersphere, Block Dream Fund, Genesis Block Ventures, CMS Holdings, AU21 Capital, Digital Finance Group, PNYX Ventures, FBG Capital, LD Capital, Crasolum Ventures, Inception Capital.
MathChain
MathChain is a Layer 2 parachain developed based on Polkadot Substrate.
Relying on MathWallet’s millions of users, MathChain will focus on blockchain smart wallets and inclusive applications that serve everyone, and become an open source, efficient, and distributed Layer 2 blockchain network through the parachain mechanism. MathChain is a member of Substrate Builders Program and Web3 Bootcamp.
MATH’s investors include famous blockchain investment institutions such as Fenbushi Capital, Alameda Research, Binance Labs, FundamentalLabs, Multicoin Capital, and NGC Ventures.
Bifrost
Bifrost is a Polkadot parachain that provides liquidity for staking. Users can exchange PoS currency into Bifrost vToken through the Bifrost transfer bridge at any time to obtain staking income and liquidity.
Bifrost’s investors include NGC, SNZ, DFG, PAKA, CMS Holding, Altonomy, LongHash Ventures, etc., and are also members of the Substrate Builders Program and Web3 Bootcamp.
