The projects of the 1st batch of Polkadot parachains auctions — what to expect?

We have been waiting for this moment since the first Genesis block on Polkadot, for almost two years. Countless hours spent by talented developers, the best creative minds behind dozens of new projects, new ideas, all comes to this — Polkadot is ready to launch parachain auctions and become fully functional. Everything is tested on the Canary network, Kusama, and there’s no doubt that everything will go as planned.

The ecosystem of Polkadot and Kusama now has a variety of projects that cover all existing blockchain use cases:

  • NFT (RMRK, Unique Network)
  • Privacy (Integritee, Phala)
  • Smart contracts (Astar, Moonriver)
  • Decentralized identity (Kilt)
  • Bridges (Interlay)
  • Scalability (Integritee)
  • Gaming (Bit.Country)

Not all of them are going to Polkadot yet because they still have to launch on Kusama first. But some projects are ready. We crafted this article to help you understand better what is happening right now with the parachain auctions, what’s behind all these projects, and how the ecosystem is going to benefit from getting them connected to the Relay Chain.

A small remark: for those unfamiliar with the whole system of crowdloan auctions, it would be helpful to read this article first. The rules for Polkadot auctions are the same as for Kusama, the only difference is the native token for contributions, to participate in Polkadot auctions you have to contribute $DOT tokens. The rest is the same.

Acala is an Ethereum-compatible DeFi platform for swapping, borrowing, lending and liquidity staking, with a DEX and an automated market maker. It has many working features, and most importantly, it has Acala’s Liquid Dot (LCDOT), a liquid staking product, that allows all crowdloan participants that contributed to Acala, to maintain their liquidity after locking their original DOT in the crowdloan module. You contribute to the crowdloan — but you don’t lose the ability to use your stake for the whole period of slot lease. This is a new idea Acala came up with after conducting their first crowdloan on Kusama. All contibutors in Acala Liquid Crowdloan Vault will receive both ACA and LCDOT, and can redeem liquid tokens to DOT at the end of the 96 week parachain lease.

The system will also allow simply staking DOT through Acala and getting LCDOT in return, not for crowdloan purposes. LCDOTs can be staked in liquidity pools or used to buy any other tokens, creating endless combinations of DeFi opportunities. Currently, 3 months after launch, the total locked value (TLV) of assets on Karura, Kusama version of Acala, exceeds $400 million, with 75,000 of users. We expect these numbers to grow significantly on Polkadot Acala.

aUSD, a stablecoin by Acala, similar to DAI, currently has the chance to become the main stablecoin of the ecosystem, due to its first-mover advantage and due to the stability of the Acala ecosystem. It’s based on the Hozon protocol. To create aUSD, users have to lock their tokens in a CDP contract (Collateralized Debt Position) as collateral. It’s controlled by the special algorithm checking the price of collateralized tokens to ensure that the value of locked tokens is bigger than the value of minted aUSD. This module will accept all tokens from the ecosystem, and it will be possible to lock any token of any project to create a stablecoin. Over time, the ecosystem becomes more and more interoperable and aUSD will become a very important part of Polkadot DeFi.

And the last thing we have to mention is the EVM on Acala. Once it goes live, developers will be able to write decentralized applications on Acala in the way they did on Ethereum, but all Substrate features will be available for them as well.

The Acala platform will be agnostic in terms of fees, it will accept fees paid in any ecosystem token. The native token for the platform is ACA, its max supply is limited by the number of 1 billion, and it’s deflationary because all tokens received as fees for transactions, creating CDPs and penalties are removed from the supply by burning them.

If you want to contribute to its crowdloan, feel free to use our link, it will give you additional rewards link

  • Liquid, Transferable ACA: 20% of ACA will be liquid and transferable
  • Referral Bonus: 5% ACA bonus for the referrer and 5% for the referral link owner.
  • VIP Referral Bonus: 10% additional bonus on all DOT contributed using your referral code when you refer 500 accounts that contribute over 3,000 DOT. This is limited to up to 100 winners. If there are more than 100 qualifying winners, the top 100 in DOT contributed using their referral code will earn this bonus.
  • Quest Bonus: 2% ACA bonus and exclusive NFT for users that complete all 5 Acala Quests.
  • Karura Crowdloan Contributor Bonus: 2% additional ACA bonus when using the same account that you used for the Karura crowdloan.
  • NFT Reward: Awarded to all Acala Crowdloan contributors except users that participate through exchanges.

EVM, a DEX, various types of liquid tokens, a stablecoin, all this makes Acala one of the strongest projects in the ecosystem.

If you want to contribute to its crowdloan, feel free to use our link, it will give you additional rewards link

Astar (Shiden on Kusama) is an advanced dApp hub with EVM and WASM smart contracts, dApp staking and layer 2 solutions. Its main focus is to promote dApp development on Polkadot and to reward not only validators but developers as well. A network without use cases is a dead network, and nobody cares how many transactions per second it can process. Developers are the people who create purpose for all blockchain networks, and now with dApp staking on Astar they can earn rewards for their work. 40% of every block’s rewards go to developers, thus they are incentivized to launch dApps on Astar instead of Ethereum or any other parachain.

To nominate a smart contract, a user has to lock her tokens on the Astar dashboard, thus temporarily removing them from circulation. After the nomination, both the nominator and the operator (the contract owner) will get rewards if somebody executes this smart contract. This scheme incentivizes both users and developers, to stake tokens and to deploy smart contracts on Shiden. The more users stake their tokens and nominate smart contracts, the higher the value of the native token (ASTR) will be.

Astar supports both Ethereum Virtual Machine and Web Assembly Virtual Machine, giving freedom in choosing the coding language and development tools. Those developers who migrated from Ethereum can easily port their applications to Astar and continue developing on Solidity, using the same tools.

Other significant features:

  1. One of its core features, the X-VM (Cross Virtual Machine), creates a layer of abstraction that allows smart contracts to execute calls and read storage data from different contract engines (virtual machines) and languages within the same blockchain.
  2. Natively supports Metamask and Remix
  3. It’s possible to change the dapp owner address in Astar after deploying the contract.
  4. An Ethereum bridge (already works on Shiden)
  5. Optimistic Virtual Machine allowing dapp developers to use such Layer 2 protocols as Rollups. zkRollups are fully supported right now, more protocols to come.

Being the smart contracts platform, Astar and Shiden can become the central hub for all non-Substrate-based blockchains. It can be done by building bridges to all popular blockchains and bridging tokens and data from them to Polkadot and Kusama. It will be even possible to interact with Ethereum Layer 2 solutions such as Boba Network or Optimism.

Shiden has already proved its worthiness to the ecosystem and bridged many ERC20 tokens such as USDT and DAI to its parachain (with the aid of AnySwap), and it’s only a matter of time before it will be possible to swap KAR to USDT or any other ERC20 token on Polkadot DEXes. Shiden and Astar will stay among the most useful parachains for Kusama and Polkadot respectively.

The native token of Astar is ASTR. Its max supply is limited by the number of 7 billion (previously 70 million). Its main purpose is dApp staking, governance and paying fees. The exact tokenomics aren’t disclosed yet, but now there’s a chance that some of tokens that should be sent to the Treasury Fund will be burned, because the same thing recently happened on Kusama. The whole Shiden Treasury, 370,000 SDN, was burned after the community approval, to make the token more deflationary. However, there’s no guarantee that the same will happen on Astar.

If you want to participate in the crowdloan, feel free to use our link, it will give you additional rewards — link

Supply for the first parachain auction:

14 million ASTR — 20% of the total supply:

- 15% for crowdloan + auctions

- 5% for bonus pool

Reward Ratio: fixed amount of ASTR for each DOT, 15% of the initial supply will be distributed among all participants based on their DOT contribution.

Vesting: 10% of ASTR tokens will be available after enabling transactions, the rest will be vested for 22 months with linear unlock, but can be used for dApp staking.

Bonus Rewards:

  • 20 % early bird bonus: if you join before the end of the auction 1;
  • 10% bonus for Plasm Lockdrop and Shiden Crowdloan participants.

If you want to participate in the crowdloan, feel free to use our link, it will give you additional rewards — link

Moonbeam (Moonriver for Polkadot) is another smart contract platform on Polkadot. Its main difference from Astar is the lack of WASM support. However, porting Solidity-based dApps from Ethereum to Moonbeam is even easier than in the case of Astar.

The main features of Moonbeam:

  1. Compatible with Ethereum tools, such as MetaMask, Truffle and Remix.
  2. Supports Ethereum libraries such as Ethers.js, so any developer can work with a Moonriver node as if it was an Ethereum node. Also, it supports Web3 Python and Javascript libraries allowing to use IPC, HTTP, or WebSocket protocols the same way as Ethereum developers do.
  3. Cross-chain ERC20 token transactions. Moonbeam can connect to Ethereum via the Kusama bridge and via ChainBridge and transfer tokens back and forth.
  4. Built-in integrations for oracles, such as ChainLink, Razor Network and Band Protocol.
  5. At the same time, it’s still a Substrate-based blockchain and it’s fully compatible with the whole Substrate toolset including block explorers, front-end development libraries, and wallets.

One of the most recent and important announcements the project had is its partnership with Etherscan, a block explorer and analytics platform for EVM-compatible chains. Together they will launch Moonscan. It’s a giant step forward for the network, because with Moonscan, developers will be able to verify their smart contracts, i.e. describe how they work for end users to ensure transparency in using them. Moonscan will also have a smart contract comparison tool to analyze the differences between contracts, a block explorer, statistics, lists of minted tokens and many more.

Moonbeam is designed for several groups of developers. It can be used by Ethereum developers who want to migrate with their already existing projects to a more scalable and less expensive blockchain, or simply move a portion of their workload until Ethereum scales (which won’t happen in a near future). Some projects have the strategy to replicate on every possible chain, thus we already see some DEXes getting ported to Moonbeam. Also, it can be good for those who want to benefit from using smart contracts, who need that functionality in their products, because the native Kusama Relay chain doesn’t have on-chain logic built-in.

Token: GLMR coin

Initial Supply: 1 billion

Reward Pool: 100 million (10% of the genesis supply)

Reward Model: DOT Contribution/Total DOT Contributions * 100 Million GLMR

Vesting

30% of the incentives will be available for instant claim (after EVM and transfers are enabled) The remaining 70% will vest on a block-by-block basis for the life of the lease (96 weeks).

Its native token is Moonriver (MOVR) with a genesis total supply of 10 million units and a 5% annual inflation rate. It’s used for smart contracts execution, as the network transaction fee, as the governance token and as a reward to operators running collator nodes. 20% of transactions fees go to Treasury, 80% of transaction fees get burned.

Bifrost is a DeFi platform that allows the creation of cross-chain derivatives. It addresses a new problem — users don’t know what to choose in general, staking on PoS chains, such as Ethereum 2.0, Polkadot and Cosmos, or providing liquidity to staking pools on Uniswap, Kava or Balancer. If they choose DeFi yield farming, that means that fewer people stake PoS tokens, and the security of PoS networks decreases. If they choose to stake, they make less money. At the same time, the more PoS tokens are staked, the less of them are traded on crypto markets, and their liquidity greatly suffers, causing insane price swings.

Bifrost’s solution is pretty simple — instead of staking PoS tokens on their own, token holders can allocate them to a Bifrost staking pool, and stake them there. After locking up staking tokens, Bifrost creates the same amount of derivatives tokens and sends them back to users. For example, users currently can stake ETH and get vETH for it for DeFi operations. These vETH tokens also can be staked in a pool or used in any other way, thus Bifrost users can get double profit both from staking and DeFi yield farming. Also, it features KSM staking, and DOT staking.

The Bifrost team is building bridges with EOS, ETH, and has many other platform bridges and additional features in the plans. Bifrost is a significant part of the infrastructure of Kusama and Polkadot. The main difference between Bifrost Finance and all the other projects, participating in the auctions is that Bifrost doesn’t have a canary network. it’s already connected to Kusama and it will connect the same parachain to Polkadot after winning a slot.

In addition, Bifrost has a working solution for parachain crowdloans, called SALP. The idea is the same as with staking. In the nutshell: users send DOT tokens to the SALP module to support a certain project, the module generates vsDOT and vsBond tokens and sends collected DOT tokens to the project, and in case of auction success users can trade these new tokens while their original DOT are locked during the slot leasing period. SALP can be used to participate in any crowdloan on Polkadot, thus it’s one more reason for it to gain more users.

Manta Network (Calamari on Kusama) is an interoperable privacy protocol based on zk-SNARK, a novel form of zero-knowledge cryptography, also used by Zcash. The acronym zk-SNARK stands for “Zero-Knowledge Succinct Non-Interactive Argument of Knowledge” and refers to a proof construction where one can prove possession of certain information, a secret key, without revealing that information, and without any interaction between the prover and verifier.
Manta consists of two main parts: the decentralized private payment protocol and the decentralized private token exchange protocol.

  1. The decentralized anonymous exchange (DAX) protocol is also based on zk-SNARK. It has an automated market maker, and it’s free of front-funning due to its privacy.

Why front-running is such a big deal? Traditionally, trading and arbitrage bots have an unfair advantage in comparison with regular DEX users, because they can always front-run any decentralized trade. To do it, they check the mempool of transactions for interesting deals. Upon seeing a large-sized order, let’s say, selling 1,000 ETH, they can put a similar order and set a higher gas fee to get execution priority from validators, thus front-running this large order. Such bots make a ton of money on users all the time, but a private DEX can solve this problem. MantaSwap hides its users’ addresses, which prevents from being tracked.

On MantaSwap, users can anonymously trade private versions of tokens on the platform between each other. Aside from complete privacy, MantaSwap functions the same way as UniSwap or any other popular DEX. Currently it’s the only decentralized trading platform in the crypto space based on zk-SNARK, due to the complexity of computations required for this cryptography type. Usually it’s very resource-demanding, but a WASM-based runtime for Substrate allows to compile it from Rust code to WASM, making it more efficient than EVM and thus requiring less resources to be executed.

The team also has plans to intergrate Manta into decentralized private lending platform where users will be able to deposit and borrow tokens for some interest. Manta stablecoin is also on the way. So the network is going to be very huge.

The native token of Manta is MA, its total supply is 1,000,000,000, and it’s deflationary. Its main purposes are fees payment, staking, governance. Fees are getting paid every time a user mints a private token, redeems base tokens from private tokens or swaps tokens on MantaSwap.

Reserved allocation for the crowdloan: 15% of the total supply (150 million $MA)

  • 30 million for MantaPay Liquidity Event

Rewards: 1 DOT = 4 MA (5 MA for MantaPay Liquidity Event participants)

MantaPay Liquidity Event: 3% of the token supply (30,000,001 MANTA) will be distributed to contributors of Manta crowdloan who complete deposit milestones on the MantaPay.

Early Contribution Rewards:

  • Before the End of the Third Auction — 5% bonus

The crowdloan cap: 30,000,001 DOTs

Centrifuge Chain (Altair on Kusama) is a leading platform for tokenization of real-world assets. It unifies DeFi technologies and real estate. On its platform Tinlake, investors can use their funds to invest in pools of real-world estate and earn AIR tokens. These pool rewards are defined by the Centrifuge Community. Every real-world asset is an NFT that can be used as collateral on Tinlake to get some funding. So, it works as a collateralized loan — by locking an NFT, the borrower can receive funding and return it later with some interest. This interest is paid to investors and to the platform.

The Asset Originator can use the funds provided by the pool investors. The NFT is minted based on a document created and shared Centrifuge’s P2P protocol, which isn’t public because it contains some private information about issuers. Financing fees and Principal/Maximum Financing amounts for these NFTs are provided by an on-chain pricing scorecard and going forward determined by external service providers through “Pricing Oracles”.

Tinlake is going to become a multi-chain decentralized protocol that works on Kusama Altair, Polkadot Centrifuge and Ethereum Centrifuge. Currently, it’s already live on Ethereum, and for this version, the main stablecoin used in all pools is DAI. Altair is currently in the process of being launched on Kusama, and it’s not clear yet, what asset will be used as a stablecoin on its chain. Probably it could be KUSD on Kusama, and aUSD on Polkadot.

CFG is the native token for Centrifuge Chain. The initially minted supply of CFG was 400,000,000, with additional 25,000,000 being minted for adoption. The annual inflation rate is 3%, these tokens will be used as PoS block rewards, DOT lock rewards, and liquidity rewards. Owning CFG gives users a stake in the Centrifuge network and can be used to pay for transaction fees, stake towards Collators, and participate in Centrifuge on-chain governance. It will also incentivize chain security — both by rewarding DOT holders in the Parachain Loan Offering, and by distributing a block reward to Collators and Nominators. Centrifuge also empowers its holders with governance. Centrifuge Chain uses Substrate’s native governance module, comprising an elected council and the ability to administer network upgrades.

The exact tokenomics for the crowdloan aren’t published yet.

PromoTeam is a diverse team of specialists and blockchain activists with various skills that actively promotes the Polkadot ecosystem in the English-speaking and Russian communities.

Our main activity is content production, offline and online event organization, community management and creation, product marketing, development of ambassador programs.

We also run validator nodes for Polkadot and Cosmos blockchains and participate in the Polkadot ecosystem projects as investors, advisors and contributors.

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