Bifrost will support Basilisk Kusama Crowdloan through SALP Protocol
We are pleased that Bifrost will be supporting Basilisk in the second batch of the Kusama slot auctions through the SALP protocol and releasing its contributors’ bonding liquidity. The SALP Pallet will live on after the auditing, during the 7th Kusama slot bidding period.
Bifrost x Basilisk
As one of strong competitors of the 2nd batch of Kusama slot auctions, Basilisk will enable the utility of its frictionless liquidity bootstrapping for multi-chain assets when they wins the auction, which is attractive for Bifrost to reach the partnership with Basilisk, provide frictionless AMM liquidity and Staking liquidity for DeFi users.
In order to accelerate the partnership of this DeFi combo, Bifrost wishes to boost the winning rate of Basilisk’s parachain auction. All Basilisk’s contributors who contribute though SALP protocol will be able to join the derivative mining with vsKSM, and receive Bifrost native token (BNC) as reward. Once Basilisk wins the auction, the vsKSM will be tradable for swap between KSM and other assets effortlessly.
Basilisk Crowdloan Rewards
For the 2nd Kusama Crowdloan auction, Basilisk is rewarded with two types of rewards: BSX rewards and HDX bonus.
For the first type of reward, the amount of the BSX rewards depends on two factors.
- Share of the individual contribution in the total amount of contributed KSM
- BSX rewards multiplier
The rewards multiplier is at its highest value (1x) in the first 45h after an auction has started. This is the best period to bring your offerings for the snek. Once the ending period of the particular auction has started, the multiplier will drop linearly for the remaining 5 days of the auction until it has reached 0x in the last auction block.
As with the Kusama parachain candle auction, Basilisk also used this approach for the BSX rewards. The BSX rewards mechanism incentivizes early contributions and brings fairness to the game.
The second element of the rewards mechanism is the HDX bonus which partially compensates for the opportunity costs of locking your KSM tokens instead of staking them against a ~14% APY. In other words, eligible contributions will receive part of the incurred opportunity costs in HDX tokens priced at $ 0.08059 (the closing LBP price).
The HDX bonus varies between 30% and 5% of the contribution’s opportunity costs. The bonus is at its highest (30%) while the snek is playing catching up with the frontrunners. As Basilisk becomes first and secures a comfortable lead of 15%, the HDX bonus will start dropping. Once the lead has reached 20%, the bonus will be at its lowest (5%).
More Basilisk Kusama Crowdloan information please refer this Article: The Snek is Back https://basiliskfi.substack.com/p/the-snek-is-back
What is SALP?
SALP (Slot Auction Liquidity Protocol) aims to issue derivatives vsKSM/vsDOT for KSM/DOT Parachain contributors, vsKSM/vsDOT can be used for DeFi applications such as swap and liquidity mining during the KSM/DOT bonding period, exchange KSM/DOT in AMM at any time. After the parachain lease expires, derivatives can be fully redeemed for KSM/DOT in 1:1. Learn more about SALP.
What is Basilisk
Basilisk is a liquidity bootstrapping protocol built for Kusama. Its mission is to enable frictionless liquidity for the long tail crypto assets and offer users,founders or artists wide variety of AMMs or price discovery mechanisms which fit their needs.
The modular design of Basilisk enables new crypto assets to bootstrap liquidity by choosing the Automated Market Maker (AMM) model which they find most convenient. The first version comes with implementations of a Liquidity Bootstrapping Pool (LBP) as well as XYK pools with order matching transactions. The following iterations will bring more advanced price discovery mechanisms to Basilisk such as auctions and bonding curves. An NFT marketplace is also on its way!
Basilisk has close ties with HydraDX which has set out to become the go-to liquidity provider on the Polkadot network. Together, Basilisk and HydraDX create a synergy which caters to the varying liquidity needs of crypto assets throughout their entire lifecycle. Bootstrap liquidity in the early stages using a Basilisk AMM, then moved onto the HydraDX Omnipool to unlock unprecedented cross-chain liquidity in an ocean of assets.
What is Bifrost?
Bifrost is the Polkadot Ecological DeFi basic protocol. It is committed to becoming an infrastructure for staked assets to provide liquidity. Bifrost launched derivatives vToken for Staking and Polkadot Parachain Slot (Crowdloan). It has obtained $2.15M in fund-raising from NGC, SNZ, DFG, CMS and other institutions and Web3 Foundation Grant. It is also a member of Substrate Builders Program and Web3 Bootcamp.
vToken can optimize transactions in multiple scenarios such as DeFi, DApp, DEX, CEX, and realize the transfer channel of stake rights such as staking and Crowdloan through vToken, realize the risk hedging of stake assets, and expand scenarios such as vToken as collateral for lending, its staking reward part of the interest can be offset to achieve low-interest loans.