Parallel Heiko Decentralized Crowdloan — Stay Liquid and Earn Yields while Contributing
Crowdloan is an integral part of the Kusama and Polkadot ecosystem. It is the key to their scalable multichain architecture as it allows parachains to connect to the network by leasing a slot on the Relay Chain via a permissionless auction. To put it simply, it is a way for new projects to get the support and funding they need to connect to the relaychain as a parachain.
To be clear, crowdloan participants are not loaning their assets to the parachain. Instead, the crowdloan contributions (KSM and DOT) are locked into either network for a specified period. Contributors are eligible to receive a reward (usually in the form of the project native token) if the project wins the parachain auction slot.
The locked assets are used to secure the parachain slot on the relaychain through proof-of-stake and are not directly available for the parachain project to use. In the event that the project is unable to secure a slot, the contributed asset is unlocked and refunded back to the participants.
The mechanics of the Kusama parachain auction are simple but unique. It uses a modified candle auction format. To prevent auction sniping (the strategy of bidding at the last moment) and promote more accurate price discovery, the exact endpoint of a particular auction remains unknown until after the auction’s close.
Parallel Heiko Decentralized v2 Crowdloan
Parallel Heiko introduces a decentralized crowdloan pallet that allows participants to contribute to Kusama parachain auctions through the platform. The v2 crowdloan pallet is a significant improvement over the earlier multi-sig wallet version. Users can now contribute to parachain auctions through the crowdloan pallet and receive derivative tokens — cKSM to help them stay liquid. Contributors can redeem cKSM to KSM at the end of the lease period, and they will also receive project rewards from the respective chains. cKSM can be used in an array of Heiko products, such as the AMM and Staking pallet, as the platform runs a composable and interoperable ecosystem.
Crowdloan is one of the numerous ways our users can compound their rewards. First, they earn base rewards on their contributed assets. They also receive additional project bonuses from the project bidding for the parachain slot. Apart from these, they can use their cKSM in the money market as collateral to borrow other assets or participate in leverage staking by lending their derivative token to the money market to amplify their yield. In addition to these, they can also supply their cKSM to the AMM to provide liquidity and earn multiple rewards. As of early April 2022, Parallels Heiko crowdloan has a TVL of $561 million, commanding 22% of the total market share.
How to Contribute to Kusama Crowdloans
The process of contributing to Kusama crowdloans on Parallel Heiko is straightforward. All you need to do is visit the Crowdloan pallet and follow the 3 steps below:
- Select the active crowdloan you want to support by clicking “Contribute.”
- Enter the KSM amount you wish to contribute and agree to the terms.
- Click ‘Contribute’ and confirm your transaction.
More information about how to participate in crowdloans can be found here.
How to List your Project
If you are a project and would like to list your project on the Parallel Heiko decentralized crowdloan, here are the steps to follow:
- Create an issue at our repo, which brings you to the onBoarding issue template. If it is your team’s first time onboarding on our platform, you need to create a PR and include information about your project.
- Once the PR is merged and we have created a vault for your crowdloan, it will show up on our crowdloan table.
- If you’d like to close or delist your crowdloan for any reason, kindly reach out to us via email.
- If you would like to partner with us on additional bonuses or need support, you can reach us via email too.
This page has more detailed information about project onboarding and an information checklist.
Why Parallel Heiko Decentralized Crowdloan
Parallel Heiko is a user-focused DeFi protocol, and here are some of the reasons why you should use the decentralized crowdloan product:
Early access to liquidity: The crowdloan contributors don’t have to wait till the end of the auction before they have liquidity. Heiko is committed to offering our users a wholly integrated experience that provides them with greater capital efficiency and allows them to maintain their positions in a more flexible and non-custodial manner. We offer a derivative equivalent (cKSM) of their staked KSM that functions and can be used the same way as the base asset in the Heiko DeFi super DApp suite.
Higher rewards and bonuses: As earlier mentioned, crowdloan is one of the ways to compound your rewards. Parallel Heiko decentralized crowdloan opens new ways to earn more on your KSM contribution.
Diversity in sourcing liquidity: We are committed to helping more projects launch to have a robust parachain ecosystem. Supporting projects in winning a parachain slot allows them to source the needed fund to support the project.
A single-stop platform: There are many methods to participate in crowdloans — project websites, PolkadotJS, wallet apps, etc. However, there are only a few platforms that allow users to view and contribute to different active crowdloans. Parallel Heiko offers a single-stop user-friendly platform with intuitive UI/UX where users can participate in crowdloans via 3 processes. The pallet also features a dashboard where users can see the available campaigns, monitor the progress, and view their rewards/ bonuses.
About Parallel Heiko
Heiko is the Kusama blockchain-based sister network to Parallel Finance. The platform is committed to building a decentralized future that empowers the community to increase DeFi capital efficiency, security, and accessibility. It features a suite of DeFi super dApps that include Staking, AMM, v2 Decentralized Crowdloan, Wallet, Farm, Cross-Chain Bridge, and Decentralized money market.
We are one of the largest parachains in the Polkadot space with over $700M+ TVL and 200K+ active users and have some of the best investors, including Sequoia, Founders Fund, Coinbase, Polychain, etc. The platform has a rapidly growing global team of over 70 doers from top organizations in and outside the cryptocurrency space, including The World Bank Group, Dash, Crypto.com, ChainLink, Meta, Polygon, Ledger, JP Morgan, Standard Chartered, Amazon, BlockFi, etc. and we are still hiring!
Stay in touch with us.
Website: https://parallel.fi
Twitter: https://twitter.com/ParallelFi
Telegram: https://t.me/parallelfi_community
Discord: https://discord.gg/buKKx4dySW
