Overview of Projects Participating Polkadot Parachain Slots Auction
Just before Christmas, Rococo V1, the Polkadot parachain testnet, was officially launched. “Rococo is a public test network, maintained by Parity and the Polkadot developer community, designed to test the consensus process of parachain and the parachains built by the community, as well as the interactions between them. “ Robert Habermeier, the co-founder of Polkadot says. The official launch of Rococo V1 means that the “big show” of the Kusama and Polkadot parachain slot auction will gradually, kick off with the arrival of 2021.
The Polkadot Parachain Slots Auction has become one of the most popular events in the cryptocurrency market in 2021, and investors have been focusing on which projects will successfully “occupy” the first parachain slots. Based on the public information available in the market and the results of our communication with the projects related to the Polkadot ecosystem, we have compiled the information of a dozen projects participating in the Polkadot Parachain Slots Auction so that investors may have a better understanding of these.
Overview
Acala Network
Acala Network aims to unite the parts of Polkadot ecosystem to create an open financial framework and has already launched the Honzon protocol, a stable coin collateralized by multiple crosschain asset, and the Homa protocol which release the liquidity of staking assets. The Acala project has announced plans to participate in the parachain slots auction including:
1/ Acala network will participate in the Polkadot Parachain Slots Auction and their sister network Karura will participate in the Kusama Slots Auction;
2/ Acala testnet Mandala has conducted the cross-chain interaction examination with other Polkadot ecosystem projects on Rococo, the parachain testnet.
3/ Acala plans to launch PDOT, a derivative token used to release liquidity the DOT locked by auction, in the first half of 2021.
For now, Karura, the testnet of Acala, holding the campaign to prepare the Parachain Acution, and the Karura parachain auction information website is officially launched, where project supporters can see the latest auction information, community registration and opinion collection about projects, etc.
Phala Network
Phala Network is the first privacy project on Polkadot, and the core products, pLibra, and Web3 Analytics have been awarded by Web3 Foundation Grants. Phala Network announced details about its participation in the Kusama and Polkadot parachain slot bidding at:
1/ Phala will allocate a portion of PHA as the reward for success in the Auction. These will reward to encourage investors to support Phala bidding for Kusama and Polkadot slots auction.
2/Cooperate with the centralized institutions(exchanges, etc…)to participate in Polkadot parachain slot auction.
Currently, Phala is running the test network Vendetta incentive program, including the 1605 Race, Builder Bonuses, and more. Phala also has collaborated with other polkadot ecosystem projects continually, including collaborate-mining with the storage project Crust, and released the first privacy cross-chain implementation with Acala Network, etc.
ChainX
ChainX is a decentralized cross-chain asset project on polkadot, where any participant can submit cross-chain data to each light node competitively within ChainX, and ChainX derives the optimal chain as well as valid transactions based on consensus algorithm. ChainX has announced a scheme for parachain slots including:
1/ ChainX will give 15%-20% of council funds and computing power of network to motivate supporters.
2/ ChainX is exploring a series of measures to release the liquidity of DOT and KSM locked by auction and attract users to lock token in advance. Now overall solution is over 90% complete.
3/ For Kusama parachain, ChainX will launch an airdrop MCP token program for PCX token, which will be rewarded to project users who supported ChainX parachain auction.
The main network of ChainX has been updated to Substrate 2.0 version. About the direction of ChainX 2.0 independent blockchain, which will evolve from the Kusama parachain, Polkadot parachain, and Polkadot Relay chain. ChainX network adopts the governance structure of three houses according to the Polkadot and introduces the concept of X-Association and treasury. The whitepaper V2.0 and the new version of the official website will be launched as soon.
Darwinia
Darwinia network is a cross-chain bridge network based on Substrate, focusing on cross-chain stablecoin and asset trading. Currently, the Darwinia team has announced the parachain slot auction plan including:
1/ Darwinia network and the crab testnet will participate in the parachain slots auction of Polkadot and Kusama respectively.
2/ Darwinia will give a portion of original token $Ring to incentivize users.
3/ In the dApp game Evolution Land, Darwinia will offering “Land” token as rewards to incentivize the users supporting Darwinia bidding the slots.
4/ Other unique incentive programs are under discussion.
Bifrost Finance
Bifrost is an infrastructure Defi protocol based on Polkadot, designed to become the infrastructure for providing liquidity for staked assets. Currently, Bifrost launching derivatives vToken for staking and PLO (parachain slots). The parachain slots auction program announced by the Bifrost includes:
1/ Bifrost launched the PLO Liquidity Solution in latest whitepaper. Offering the derivatives token, vsDOT and vsKSM, for other parachains to solve the liquidity problem of DOT and KSM in slots auction. User participate the parachain PLO could transfer their right and wealth at any time, the trading scenario of vsDOT and vsKSM will supported by internal transaction pool, parachain DEX, and centralized exchange, etc.
Stafi
Stafi is a platform developed on Substrate to provide liquidity for staked assets. Stafi is the first DeFi protocol to provide a liquidity solution for staking assets on Polkadot. Users are able to obtain rToken derivatives after making a token pledge/staked, enabling trading assets even during the staked period. Currently, the information gathered about the Stafi project regarding parachain auctions includes:
1/ Stafi team still discussing the specific slot auction plan, including update the token model of the project and the specific incentive methods to reserve part of the token in the community. 40% token reserved in the community incentive program will be allocated after the auction begins.
2/ The team has set aside 40% of the community incentive program that will be refined for distribution once the auction begins.
Recently, Stafi released the rToken whitepaper officially, which shows that the rToken solution will first be implemented on Ethereum 2.0, Polkadot, and Cosmos, to provide not only staking liquidity solutions for the above three public chains themselves but also providing rToken protocol standards for PoS projects on the above three public blockchains.
Litentry
Litentry is dedicated to providing Web 3.0 decentralized identity management services to create an on-chain identity credit system, by integrating network identity information from different chains. The information announced by the project team about the parachain auction is:
1/ Litentry hasn’t announced a specific auction plan, but the Litentry team said they will participate in the parachain slots auction.
Zenlink
Zenlink is a Polkadot-based crosschain DEX protocol that enables sharing the DEX order books between all parachains in the Polkadot. By integrating the Zenlink DEX Module, Zenlink enables parachains to have DEX trading capabilities quickly and to share liquidity with other parachains. Zenlink on parachain auction-related scheme include:
1/ Zenlink will release a 1.0 beta testnet based on the parachain schedule to address the liquidity problem of KSM and DOT staked in the auction. Zenlink plans to give priority to access in the Polkadot ecosystem projects such as Acala, Bifrost, and Stafi so that users in the Polkadot ecosystem could trading on Zenlink DEX.
2/ Zenlink plans to give a portion of the token to help Zenlink partners participate in the parachain slots auction.
In December, Zenlink completed the first cross-chain transaction between parachains on Polkadot, which means that assets issued through Zenlink modules can be transferred across parachains based on XCMP. At the same time, Zenlink DEX smart contract development received a grant from Web3 Foundation, and Zenlink already open-sources the DEX smart contract.
Crust Network
Crust Network provides a decentralized storage network for the Web3 ecosystem that supports multiple storage protocols including IPFS, and aims to build a distributed cloud ecosystem that protect privacy and ownership of value data. Crust Network’s participation in parachain auctions includes:
1/ Crust Network team added Crust in Polkadot parachain testnet Rococo and entered the queue in Oct, meanwhile maintaining ongoing support for tech updates related to parachain.
2/Curst Network will offer CRU tokens to users that support Crust Network in the Kusama and Polkadot slots auction.
Crust Network has launched the “Profit Ark” incentive test network, the first phase will distribute about 300,000 CRU tokens as rewards. On December 30, the “Profit Ark” test network storage reached 65.706 PB, with a total of 521 validators and candidates.
Plasm Network
Plasm Network is a scalable Dapp platform built on Substrate. Developers on Plasm can build any application without considering scalability problem. Plasm Network is prepared for parachain slot auctions with:
1/ In order to participate in the auction, part of the network will temporarily freeze 2 days before the Polkadot parachain slots auction. Transaction on Plasm Network will be blocked temporarily.
2/ Plasm will apply and try to be the first Rococo parachain when the registration starts.
MXC
MXC is a one-stop solution provider for blockchain & IoT, using Polkadot cross-chain technology to complete the interconnection with low-power and wide-area networks around the world by enabling things to connect. MXC preparation in the Polkadot parachain slot auction is:
1/ Using the dual tokens inccentive mechanism of MXC, the original token and DHX, the token from “Data Highway”. The team will try best to compete for the first batch of Polkadot Parachain Slots.
2/ The team will announce more marketing plans and incentive plans before and after the Parachain Auction.
Konomi Network
Konomi Network is a decentralized cryptocurrency marketplace protocol based on Substrate. Konomi is designed to provide a cryptocurrency marketplace for assets in the Polkadot ecosystem. The Konomi Network’s preparation for participate in parachain auctions include:
1/ Konomi will establish an independent testnet at first, then participate in the Kusama Parachain Auction and then participate in the Auction on Polkadot.
2/ After the Parachain Auction locked the liquidity of DOT and KSM, Konomi will provide basically lending service to provide revenue and financial products for projects that participate in the Auction and locked their assets.
Moonbeam
Moonbeam is an ethereum-compatible smart contract platform based on the Substrate. Developers could quickly build applications that work with users and assets on remote chains by using the compatibility of Moonbeam smart contracts with ethereum web tools. information about the project’s participation in the parachain auction announced by the Moonbeam is:
1/ Moonbeam is currently running a test network and plans to participate in Kusama’s parachain auction as soon as possible, and expects to be able to go live before Polkadot’s parachain auction.
2/ The Moonbeam team is still waiting for a more precise schedule from the Parity team regarding the parachain auction.
3/ The Moonbeam team is working on a funding plan for the parachain slot, which is expected to be announced soon.
Ontology
Ontology is a collaborative platform for public blockchain and decentralized trust, including full distributed ledger and smart contract system support. As a famous public blockchain, Ontology announced around October that it would be developed on the Polkadot, integrating Ontology’s decentralized digital identity DeID into the Polkadot. Ontology also announced that it would participate in the auction of parachain slots for:
1/ ONT will integrated DeID, a decentralized ID solution, on Polkadot, will support the Ontology build up parachain on Polkadot and participate in the auction in future.
2/ In addition, Ontology credits Oscore and DDXF technology will be gradually applied to the Polkadot eco-system.
Edgeware
Edgeware is a high-performance and self-upgradable WASM smart contract platform on Polkadot. Edgeware is designed to address scalability issues by adopting different architectures. Edgeware’s parachain slot solution is still in the discussion around team and community, and the parachain incentive solutions currently include:
1/ Allocate 1.5~3.5% EDG of the edgeware network total supply to the auction supporters;
2/ Allocate the 10%~20% EDG of the edgeware network staked revenue in a year to the auction supporters.
Equilibrium
Equilibrium is a decentralized interoperable asset marketplace based on Substrate, which allows users to trade, lend, and collateralize crypto assets with Equilibrium. According to feedback from the Equilibrium team, the current parachain auction scheme is:
1/ Firstly, Equilibrium will conduct a swap where team will sell EQ tokens for DOT tokens with a bonus.
2/ Then Equilibrium will be used to secure the crowdfunding module’s auction with the aim to cover DOT staking opportunity cost plus a premium above that to make it attractive for investors.
3/ The exact mechanics is with numbers is still being developed
Conclusion
The specific timeline of the Kusama and Polkadot Parachain Slot Auction has not yet been announced, but this does not affect the Polkadot ecosystem projects that have started to make preparations, including the official announcement for the parachain incentive program and updated technology to access to the parachain, etc.
The above projects not the only projects that want to participate in the parachain auction at first. We will continue to follow the information of parachain auction related projects. With the rapid growth of the overall cryptocurrency market, we believed that Polkadot ecosystem projects will take advantage of the “express” of parachain and soon to the moon.
