Bifrost Kusama auction is now officially opened
According to the official announcement by Polkadot, Kusama’s first parachain slot auction will begin on June 15th, and the much-anticipated auction moment will soon come as scheduled.
Bifrost has accumulated 43,000+ Kusama reservation addresses after nearly a month of Kusama slot auction reservation activities, and launched the “Bifrost Kusama Parachain Auction Conference” at 19:00, 2021–6–10, UTC+8. During the conference, Lurpis, the co-founder of Bifrost, opened the pre-voting for the reserved addresses of vsKSM Mint Drop, and announced the Bifrost parachain auction mechanism and reward rules for the first time. This article will take you to sort out the Bifrost Parachain bidding strategy, rewards, advantages and the realization principle of the first application of SALP.
Kusama bidding strategy
Bifrost will use the main network (not Canary Network) to participate in the auction from the second parachain and continue to bid in the first five slots until the auction wins. The parachain lease period for the auction is 48 weeks.
In the Kusama auction, Bifrost’s KSM reward hard cap is 250,000 KSM, and a total of 3,000,000 BNC (Bifrost mainnet native token) is used as the bid reward, and the reward ratio is 1 KSM: 11+ BNC. After Bifrost launches Parachain, TGE (Token generation election) will be launched and 50% BNC rewards will be released immediately, and the remaining rewards will be released linearly within 48 weeks.
Reward hard cap: 250,000 KSM
Total reward: 3,000,000 BNC
Reward ratio: 1 KSM: 11+ BNC
Allocation: TGE 50%, the remaining 50% will be released linearly within 48 weeks
Auction participation channels
In terms of Crowdloan, Bifrost facilitates users to participate in voting through multiple channels.
- Bifrost official participation channel: vsKSM Mint Drop
The vsKSM Mint Drop participation page integrates Bifrost’s original parachain bonding liquidity protocol SALP. Participate in voting to obtain vsKSM and vsBond derivatives, which can be used to unlock liquidity during the bonding period. For details, please see: vsKSM Mint Drop is coming.
This channel has opened whitelist priority voting at 21:00 UTC+8 on June 10, 2021 (addresses that have been reserved can participate), and started formal voting (any address can participate) at 21:00 UTC+8 on June 11, 2021.
Participating address: https://ksm.vtoken.io/
Check the minting tutorial here: https://www.youtube.com/watch?v=O1CTi9G2S60
- Kusama official parachain Crowdloan
Bifrost will create Bifrost-Kusama-Crowdloan before 2021–6–15, and users can participate directly through the Kusama relay chain.
Participating address: https://polkadot.js.org/apps/#/parachains/crowdloan
- Multi-participation channels
Bifrost has already reached Crowdloan support channel cooperation with many project parties, wallets and decentralized exchanges.
Project party: Bifrost reached a cooperation with Zenlink/Nutbox’s Crowdloan product and will support Bifrost SALP in the parachain crowdloan.
Decentralized wallet: Bifrost cooperated with Fareless Wallet, Math Wallet, etc. to support Bifrost parachain auctions on the mobile side.
Centralized exchange: Kraken / OKex / Kucoin / MXC / Gate will support Bifrost Parachain Crowdloan.
vsKSM Mint Drop has aggregated all participating channels: https://ksm.vtoken.io/
vskSM Mint Drop implementation mechanism
vskSM Mint Drop will open Bifrost Crowdloan in advance through Kusama multisig, save all KSMs that support Bifrost bidding in the multisig address, and vote to Bifrost’s Crowdloan on the Kusama relay chain in every 10 minutes.
The purpose of using a multisig address to open Crowdloan is to hope that users can experience the liquidity convenience brought by derivatives to bond assets as soon as Bifrost becomes a parachain. KSMs that vote through the multisig address will be recorded by Bifrost and the derivatives will be issued. vsKSM+vsBond, KSM can be locked and hedged after the successful bidding of the parachain; after the expiration of the parachain, KSM can be rigidly accepted 1:1 through the combination of vsKSM+vsBond. For the specific implementation of SALP, please see: Bifrost SALP
Since the first funds from the auction need to wait for a 48 weeks lock-up period, Bifrost will allocate 5% of all KSM Funds in the multisig address as the basic liquidity of vsKSM and transfer it into the embedded Bancor pool of Bifrost SALP. Users can enjoy the usability of vsKSM derivatives in the early stage of parachain bonding.
Multisig addresses adopt a 4/6 threshold to perform crowdloan and liquidity extraction. The 6 multisig parties include:
Subscan, Web3 Fundation China Community Leader Qinwen, Polkaworld, Mathwallet, Zenlink Foundation and Bifrost Foundation.
Bifrost Parachain auction advantages
Mainnet bidding advantage: Bifrost, as the basic protocol for the DeFi derivative assets of Polkadot, will not issue a Canary network and run two sets of business logic, because doing so will cause the community to split and dilute the liquidity of derivatives. Therefore, the parachain strategy adopted by Bifrost is to run only one mainnet. When the Kusama slot expires, the data will be snapshotted to Polkadot’s genesis block to complete the migration of the mainnet from Kusama => Polkadot, and so our derivative (vToken) usage scenarios have been fully upgraded. Due to the strong binding relationship between the value of BNC and the liquidity of vToken, under the impetus of a complete economic model, the value of BNC will steadily advance with the business development of the main network.
Release KSM lock-up liquidity: Bifrost’s unique slot auction liquidity protocol SALP will support Bifrost slot auction for the first time in Kusama auctions. All KSM pledged through ksm.vtoken.io will receive liquidity derivatives vsKSM+vsBond. The former is used to release liquidity, and the latter is used to receive parachain rewards.
SALP derivatives are rich in usage scenarios: firstly, vsKSM as the basic function of the derivative token will create the liquidity release of vsKSM/KSM, and secondly, vsBond as a semi-homogeneous token will create a parachain reward trading market. In addition to being used to redeem the native KSM, vsKSM+vsBond’s innovative economy mode will be able to obtain rewards from Bifrost and other parachains in the form of pledge mining.
The 50% reward will be released immediately and the transfer will be initiated: Bifrost will initiate the Token Generation Election proposal after the parachain is launched. Once the proposal is passed, all mainnet BNC vouchers will be converted to native tokens and the transfer will be initiated. 50% of the parachain auction rewards will be released immediately, and the remaining part will be released linearly within 48 weeks.
The opening of the parachain auction indicates that the advantages of Polkadot’s ecological cross-chain interoperability are about to be released. Bifrost’s derivatives business will be used for parachain auctions, the composability of other parachains, and heterogeneous chains outside Polkadot. The bidding strategy of transitioning from Kusama to Polkadot will help accumulate Bifrost’s long-term value and gradually establish a derivatives market with a complete consensus. The Kusama parachain auction is just a starting point, and Bifrost is determined to win.
What is Bifrost?
Bifrost is the Polkadot Ecological DeFi basic protocol. It is committed to becoming an infrastructure for pledged 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 pledge rights such as staking and Crowdloan through vToken, realize the risk hedging of pledge 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.
Learn more about Bifrost