FAQ: Centrifuge Crowdloan
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Here are some answers to the most common questions about Centrifuge’s Polkadot parachain bid and crowdloan.
Why should I support Centrifuge?
By supporting Centrifuge’s bid to secure a Polkadot Parachain, you are helping realize the potential of Real World DeFi by helping real businesses tap into DeFi liquidity. Centrifuge gets DeFi into the hands of people and businesses that need access to financing. Check out this video to learn more!
There are countless assets that we can plug into Centrifuge and DeFi and enable liquidity to flow. The benefits for the Polkadot ecosystem are also major — it will help grow Polkadot DeFi exponentially. Establishing Centrifuge as a Polkadot parachain is a crucial step, and we invite you to be part of this!
Read more about how Centrifuge connects Polkadot to a limitless market of RWAs.
When does the Centrifuge Crowdloan begin?
Contributions begin Wednesday, December 15. The auctions start on 23 December; this is when the competition actually starts. From the 15th, everyone can contribute to our crowdloan, but the auction bidding begins on the 23rd.
How long do the Auctions last?
Auctions on Polkadot have an open bidding period of approximately 1 week. At the end of the bidding period, the precise moment of the auction’s close is determined retroactively. This prevents last-minute “auction sniping” and promotes more accurate price discovery (See the case for candle auctions). All projects that did not win the auction can bid for the next slot in the same batch using the DOT locked in the crowdloan. Users do not need to vote again to confirm their bids.
How can I contribute to the crowdloan
DOT holders can contribute either directly through the Centrifuge website or via the Polkadot portal. to be eligible for all bonuses, or through the wallets and exchanges that support our crowdloan. See the ‘Contribution’ section below for more information on supporting wallets and third party providers.
Is there a minimum amount of DOT for participating in the crowdloan?
Yes, the minimum is 5.0 DOT for each contribution. Thus, to participate in the crowdloan, you will need at least 6.1 DOT to ensure you still have the minimum existential deposit of 1 DOT plus additional DOT for transaction fees on your account after your contribution. Note that if you do not keep at least 1 DOT in your wallet as per the Polkadot Existential Deposit Rule, your account will drop below the existential deposit amount, and the account will be reaped (“deactivated”) and any remaining funds destroyed.
Rewards and Bonuses
What are the rewards or bonuses that I can receive for supporting Centrifuge?
For every 1 DOT contributed you receive rewards at the base reward rate
- There is 15% of the CFG supply (65.7M CFG) reserved for DOT contributors to the Centrifuge crowdloan. The entire reserved supply will be distributed to all crowdloan participants as a base reward (this does not include bonuses, which are minted on top!). The final base reward rate of CFG per 1 DOT contributed is determined by the total contributions made. For example, if the total contributions to win the crowdloan are 5M DOT, the base rewards rate will be 13.14 CFG per 1 DOT contributed (65.7M reserved CFG divided by 5M DOT contributed).
On top, you can earn up to 25 percent in bonus rewards!
- Early Bird Bonus: You will earn an extra 10% bonus on your base reward if you contribute DOT in the first 72 hours of the crowdloan opening. Check the countdown on the website to see whether the early bird period is still ongoing.
- Referral Bonus: If you refer a friend, you can earn an extra 5 % for yourself and the person who uses your referral bonus on the amount that they contribute. Minimum contribution must be met to qualify. You get 5% on every amount where your referral is used and they get 5 % as well.
- Heavyweight: contribute 5K DOT or more and receive a 5% heavyweight bonus on your base rewards.
- Loyalty Bonus: (also known as the Double Trouble bonus on Altair 😈) if you contributed KSM to Altair and also DOT to Centrifuge you will receive an additional 5% bonus on your CFG rewards.
Note: All earned tokens can also be staked and used for governance
Bonuses are not guaranteed for participants that use exchanges or other third-party contribution methods (check for more details below).
How is the final CFG base reward rate determined?
The CFG reward rate per DOT is not fixed but depends on the final amount of DOT contributed to the crowdloan.
In total, 15% of current total supply (65.7M CFG) is the supply reserved to distribute to all crowdloan participants as base rewards. For example, if 5M DOT are contributed to the crowdloan, the base rewards rate for every 1 DOT contributed will be 13.14 CFG (65.7M reserved CFG divided by 5M DOT contributed).
Note that bonus rewards are minted and distributed in addition to the 65.7M reserved for base rewards.
What is the cap for the Centrifuge crowdloan?
The crowdloan has a soft cap of 15M DOT which can be raised up to a hard cap of 20M DOT. This is used to ensure DOT contributors are not excessively diluted past the soft cap. If contributions are closed when the soft cap of 15M is reached and you contribute afterwards, then you do not qualify for rewards. We will clearly announce if the soft cap is reached and you can check https://centrifuge.io/parachain/crowdloan to confirm before you contribute.
Where can I use the referral bonus?
You can only qualify for the referral bonus if you contribute through the Centrifuge crowdloan page directly.
Make sure you copy your referral bonus after contributing through the website. You cannot retrieve your referral bonus after closing the page!
Every time I share the referral bonus, and someone uses it, do I (and they) get more CFG?
Yes, both the referrer and the referred get a 5% bonus each on what the referred contributes.
For example: A friend uses your referral code with a contribution of 10 DOT. This means you both get an extra 5% CFG based on your friend’s contribution rewards.
This applies to every person who uses your referral code. The more people that use your code, the more referral bonus you will get!
How do I qualify for the Early Bird bonus for the Centrifuge crowdloan?
Any DOT holders that contribute to the Centrifuge crowdloan within 72 hours from when it launches (15 December) are eligible for the Early Bird bonus.Please check the countdown on the website to check whether the Early Bird bonus is still on.
How do I know if I qualified for the Loyalty/Double Trouble bonus?
The Loyalty bonus (also known as the Double Trouble bonus on Altair 😈) will be given to contributors who previously contributed KSM to the Altair crowdloan and also contribute DOT to the Centrifuge crowdloan on Polkadot. The bonus is 5%. Please make sure you use the same account you used to contribute KSM to Altair to contribute DOT to the Centrifuge crowdloan. Please see this tutorial for guidance.
Please note: You must contribute DOT using the same account that you used to contribute KSM for the Altair crowdloan in order to be eligible for the loyalty bonus.
How do I claim the Loyalty/Double Trouble bonus?
Participants in the crowdloan for Centrifuge need to make sure they contribute from the same account from which they already took part in the Altair crowdloan. To do that, you have to make sure that your DOT is in the same account that you contributed your KSM from to Altair.
Is there vesting on the Rewards?
Yes, there is vesting:
- 20% of CFG will be available to transfer immediately
- 80% of CFG will vest/unlock linearly over a 96 week period
Contributing to the Centrifuge Crowdloan
How can I contribute to the crowdloan?
To contribute to Centrifuge’s crowdloan, DOT holders can contribute their DOT via the Centrifuge website. Users can also contribute directly on the Polkadot portal. Note that it will be easier to use an injected wallet from polkadot.js.
What wallets can I use to participate?
Partner exchanges like Kraken and Kucoin can also be assumed to be used for support. However, exchanges supporting the Centrifuge crowdloan auction shall confirm individually, and hence anyone planning to support the crowdloan via exchanges should refer to any official exchange announcement.
Additionally, to be eligible for all the bonus rewards as indicated at the beginning of the FAQs, we suggest that users contribute directly via the Centrifuge website or through the Polkadot browser extension.
What third party contribution methods work with Rewards?
Please note that some bonuses are not available to participants that use exchanges or other third-party contribution methods (i.e. DOT holders should contribute either through the Centrifuge website or the Polkadot portal to be eligible for all bonuses).
The following third-party providers have confirmed they will support the following rewards:
- Fearless Wallet: Base Reward, Early Bird Bonus, Heavyweight, Loyalty/Double Trouble
- Nova Wallet: Base Reward, Early Bird, Heavyweight and LoyaltyDouble Trouble
- Centrifuge crowdloan contributions are supported on Parallel’s Auction Loan see here with an additional bonus of 4 PARA per DOT contributed.
We will update this list as more confirmations are made.
How do I install and use the Polkadot.js browser extension?
Please have a look at this tutorial provided by Polkadot. If your account is of type “sr25519” (created directly on the portal instead of using the Polkadot.js extension), use these instructions instead.
I have installed the extension, but it is not showing on the Centrifuge-staking website?
Make sure the Centrifuge website is authorized for use with the extension. After authorizing access, refresh the page to get started. For further troubleshooting head over to the forum: https://gov.centrifuge.io/c/community-faqs/user-manuals-guides/43
I have several Polkadot accounts within the polkadot.js browser extension and only one of them appears — which is not the one I want to contribute with in the crowdloan. What can I do?
Make sure the account you want to use for the crowdloan is connected to your Polkadot browser extension, is set to visible, and set to allow use on any chain or Polkadot Relay Chain. Please refresh the page after you have made any changes. If the account is still not connected, try another browser (Mozilla Firefox, Brave Browser).
Can I participate in crowdloans with my Ledger?
Unfortunately, not. The extrinsic to contribute to a crowdloan is not supported currently by neither the Kusama nor the Polkadot Ledger apps. Even if that extrinsic will be supported in the future, you should be extremely careful when participating with a Ledger account. You need to make sure that the parachain candidate gives you the option to select a different address to receive your contribution reward tokens and use that option to direct the reward to a non-Ledger account. If the parachain candidate sends their tokens to the contributing account and that account is on Ledger, these tokens will be inaccessible. See more here.
I have already contributed DOT to the crowdloan. Can I add more now?
Yes, you can add as much as you like while the auction runs (unless the cap for the Centrifuge auction bid has been reached). DOT contributed from the same address simply sum up for the calculation of the bonus rewards
Can I stake or vote with my DOT after I bid in Centrifuge’s auction?
No, once you commit your DOT to the crowdloan, you cannot use it for voting, staking or any other activities until it is released at the end of the lease period (see below).
Target slots: 6–11 (Batch 2)
Parachain lease period / DOT lockup: 96 weeks
If I change my mind, can I withdraw my DOT from the crowdloan before Centrifuge wins a slot?
No. Once DOT has been contributed it automatically remains in the module until it is “retired”. If successful, that will be at the end of the 96-week lease period; if unsuccessful, it will roll into the next auction in the series (there will be 6 auctions in this round) until successful or until the series ends, latest on 10th March 2022.
After the auction
Where is the DOT held during a crowdloan?
All DOT contributions to a crowdloan are held on-chain in the relevant crowdloan module on the Polkadot network.The address can be found and verified in a blockchain explorer after your bidding.
How long will my DOT be held for the parachain?
At the time that your DOT is added, it will remain in the crowdloan module until it is released at the end of the 96-week lease period (if the auction is successful).
What happens to the DOT I bid when Centrifuge wins a parachain slot?
At the end of the auctions, when Centrifuge wins its parachain slot the Centrifuge chain will be on-boarded as a Polkadot parachain. The roadmap with all necessary Runtime upgrades will be published after the crowdloan has ended. The collected DOT tokens will be locked in the crowdloan module on-chain on Polkadot for the entire duration of the parachain slot — 96 weeks.
What happens at the end of the parachain slot lease?
At the end of the parachain slot lease your DOT will be returned via the crowdloan module to the same wallet of contribution.
Will I get my DOT back at the end of the parachain slot?
Yes, at the end of the 96 week lease period your DOT will be returned via the crowdloan module.
What happens to the DOT that has been contributed if Centrifuge doesn’t get a slot in this round of auctions?
The DOT contributed remains in the crowdloan module to support this round of auctions (6–11) until the series ends. In the unlikely case Centrifuge cannot secure a parachain slot in the second batch of auctions, all contributed DOT will be sent back to the contributors at the end of the batch 2 of the DOT auctions.
When are the Centrifuge crowdloan rewards available? How will I get my CFG?
CFG can be claimed directly on-chain to your address on Centrifuge once the chain has been fully upgraded. This address is automatically derived from the DOT address that you used for your crowdloan vote. CFG can also either be claimed through the chosen exchange (if you participate through our partners Kraken or Kucoin).
Resources:
Polkadot Auction Schedule
