Explain the opportunities and Strategies of Kusama's second round slot auction in detail. Which teams deserve special attention?

Published on 8/26/2021   748 views   0 Comments  

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background


A month has passed since the last Kusama slot auction ended. Surprisingly, in the last round of Kusama slot auction, more than 10% of KSMS were directly locked. Finally, 1114600 KSMS (according to the data on the chain) were locked through the slot auction, accounting for 11% of the total circulation of KSMS.

Up to now, six parallel chains have been running stably in Kusama network, namely, statemine public interest parallel chains allocated to free slots through governance, and Karura, Moonriver, shiden, Khala and Bifrost who won slots through auction.

A week ago, Boca officially released the report on the performance of Kusama and parallel chain networks. The report gave feedback in four main areas: block stability, approved voting statistics, network connection and network loading. The conclusion is as follows:Overall, the network runs smoothly

Therefore, last week, the official announced the schedule of Kusama's second round of parallel chain auction. The sixth auction will start at 20 p.m. Beijing time on September 1, which also means that Kusama has basically entered a good stable state from the "chaotic state",If the second round goes smoothly, Boca's parallel chain auction will be officially ushered in after solving the problem of block Caton finally determined by the relay chain

So, after the fierce competition in the last round of Kusama slot auction, what projects and teams deserve attention in the second round, let's explore.


Summary of the last round of slot auction


1. Basic overview

After the last round of Kusama slot auction, as we mentioned above, more than 1.11 million KSMS were locked in crowdload. At the same time, we can know from the official post of Boca that the competition is still fierce in the process of the last three Kusama slot auctions.

Therefore, the official further explained and analyzed the candle auction mechanism, and gave a certain reference scheme for subsequent players who want to participate in Kusama slot auction.

In the further description, we can see that the first five projects that won the slot auction are Karura, Moonriver, shiden, Khala and Bifrost.According to the plan, these projects will provide infrastructure for defi, liquidity solutions, smart contracts (native and EVM compatible), privacy cloud computing, etc, they add powerful functions to Kusama ecosystem and can meet the subsequent development of Kusama ecosystem.

2. Review and summary

2.1 the first two days of the first slot auction are important

Poka and Kusama networks adopt the "2 + 5" candle auction mechanism. The auction starts with a two-day initial bidding period and a five-day end period. The bidding period of the first two days is a normal bidding period, and the next three to seven days is a five-day ending period. This period implements the candle auction mechanism, that is, in the next five days, although chips can be added, the auction may end at any time. The end time can be known on the last day. It is random. By tracing which block ends in the last five days, the project that obtains the highest number of votes before the end will become the winner.

This mechanism will encourage the project parties to give their most real bid in the first two days as far as possible, because the bids in the next five days are not 100% guaranteed to be successful, that is to say, the bids in the next five days will be discounted.

At the same time, there are five slots ready for auction this time. Since the auction has attracted the attention of many people participating in the auction and attracted participants to participate in the form of crowdfunding PLO, the first two days of the first slot of the five slots in this round are the most critical time for all project parties to show their strength. You might as well take this time as the time for canvassing (note, Canvassing time is limited to the first two days of the first round). So,This canvassing time is the most critical period for both the project party and those who intend to participate in crowdfunding

2.2 there are game points in the last one or two slots

During the canvassing time just mentioned, we will most intuitively feel the hard power of each project party, and we can basically arrange the powerful project parties directly in order. The items sorted out in the last round of five slot auction are basically the items that finally won the slot auction. However, there was fierce competition in the auction of the last one or two slots.

Because although the ranking during the canvassing time can make all project parties and participants understand that the pattern is determined and eliminate the competition between many project parties and the top three, when facing the last one or two slots, some potential competitors will feel that they may be able to grab the last one or two slots with another effort,So we saw that the first three of the first round of slot auction were basically no suspense. On the contrary, the competition in the last two rounds was very fierce, so the last two rounds were also a place to pay attention to

Of course, we do not rule out the occurrence of other special situations, but the situation we describe at present is one with a relatively high probability.

2.3 each project party shows its magic power

In order to canvass for themselves, the project side can be said to show their magic powers.In addition to the corresponding tokens that the crowdfunding PLO can give to the participants, the project parties have also designed various mechanisms to further encourage people to participate。 For example, ACALA has designed a fission drainage mechanism to attract people to invite others to participate, which can obtain additional rewards, so as to quickly gather more people to participate in its crowdfunding; For another example, crust has designed a new incentive mechanism, which makes it necessary to bid to the slot to give rewards. Instead, as long as you participate in crust's crowdfunding, you can get official rewards, bypassing the PLO's own mechanism. This design can encourage people to participate to a greater extent.

In addition, the incentive mechanism will not be invariable, especially in the last two slot auction of the last round, some project parties added another fire to the final sprint by increasing the reward for PLO. This also makes the competition in the last one or two slot auctions extremely fierce, but the fierce competition benefits more participants, which is also a good thing.


How to formulate participation strategies and precautions for the new round of auction


Based on the experience we have just summarized, the strategy of a new round of auction is ready for participants.

1. Clarify the purpose of your participation

The first point is to clarify your purpose:

Whether you want to support your favorite project, regardless of whether it can really capture the slot;

Or do you prefer to participate in a project successfully auctioned to a slot to obtain its token, rather than care whether it is your favorite project;

Or maybe you just want to get a clear incentive like "once you invest, there will be a reward" provided by crust.

2. Develop strategies for your participation

According to the purpose of participating in the slot auction, select the corresponding observation indicators and perform the operation.

Objective ① situation

Don't pay attention to too many other observation indicators. Just participate in the PLO of your supported projects as soon as possible two days before the start of the first slot auction in the new round, in order to quickly increase the bidding amount of your promising projects, so as to attract some participants who were still hesitant at that time.

Purpose ② situation

Pay more attention to the ranking of the first two days before the first slot auction in the first round. Try to select the top three projects to participate. If you want to choose the best among the best, you also need to look at each slot auction strategy and the qualification of each project. The point is,For this purpose, try to select those projects that can successfully win the slot auction to ensure that they are successful, otherwise they will bear the opportunity cost of KSM and get nothing; Try to choose promising and sustainable projects with more returns. For this part, we will disassemble it in detail in the next chapter.

Purpose ③ situation

We mainly focus on the slot auction strategies of each company to see if there is such a clear incentive as "once you vote, there will be a reward" provided by crush.

3. Look at the slot auction strategy of each family

Each project party will propose an incentive mechanism to cooperate with its PLO crowdfunding, and all crowdfunding participants can participate. However, for participants with different purposes, they have their own emphases.

For purpose ①, this strategy is only icing on the cake for those who want to participate in the corresponding project. If it has the nature of fission promotion, they can participate more;

For purpose ②, it can be considered as a reference when selecting the best among the best among the top projects with high certainty;

For purpose ③, it is necessary to pay close attention to which of them have clear incentives of "investment will be rewarded", and then select the best among these projects.

In addition, some calculation problems are involved. If the project has been launched and has its own price, the cost and income of crowdfunding can be roughly calculated,If you want to be careful, you can take this into account and try to plan an optimal solution for yourself

4. Focus on the first two days of the first slot auction

Focus on the first two days before the new round of slot auction, that isThe time for canvassing belongs to the period of horse racing enclosure to show strength at the beginning of each projectEspecially near the end of the next day, when the pattern of each project was initially determined, the specific situation at that time will become an important reference data for everyone to participate in PLO in the future.

5. Pay more attention to the first two days of each slot auction

If you want to participate in PLO, try to make a choice in the last period of the next day,Because there will be many games between the project parties in these two daysFor example, after a ranking is initially displayed, some project parties will consider adding weight at the end, making the final result confusing. According to the data of the last round of auction, this happened when Khala and Bifrost competed for the fourth slot. The bidding prices of the two projects rose alternately, and the winner was not determined until the last minute.

6. Note the voting of the last one or two slots

As just mentioned, the auction of the last one or two slots will be more intense. The project party may consider making the final sprint by increasing the participation reward. These are important reference data for participants who want to obtain the token of the last one or two slots.

be careful:The above strategies and suggestions are put forward on the premise that we already have chips in our hands and according to some specific phenomena. They are for reference only. If there are no chips in hand, you need to take the whole market trend into account when making decisions, and choose the appropriate time to allocate chips and participate in crowdfunding.


Which projects deserve special attention?


In the previous section, we mentioned that after selecting some targets according to our own strategy, we also need to select the best from the best, which involves the specific analysis of various projects. We temporarily cited some projects worthy of attention and gave some reasons for attention for your reference.

In addition, many of the projects referred to this time are those that did not participate in the previous round. In fact, the reason is very simple. Participating in the previous round of projects does not mean that they will be all the participants in the second round. Our article as early as June《Poka ecology weekly observation - "bear infestation", Kusama slot auction untimely?》It is mentioned in that the rhythm of each project is different. It is possible that the projects that were not prepared in the last round are well prepared to participate in the new round of slot auction. Therefore, let's take a look at the rookies this time.

1、Heiko Finance(Parallel Finance)

Basic information:

Heiko finance is the leading network of parallel Finance on Kusama network. Parallel is a decentralized money market agreement established in Boca ecosystem. It provides margin mortgage, auction loan, mortgage derivatives and AMM functions, which can significantly improve the capital efficiency of dot and KSM holders. Parallel provides users with multiple functions such as leverage pledge, auction loan, interest rate swap and decentralized credit scoring, which can well solve the borrowing needs of dot / KSM holders. In addition, the product line of parallel finance also has the stacking derivatives agreement of KSM / dot, which can generate corresponding derivatives assets and introduce new liquidity for funds.

Team situation:

Founder Yubo Ruan is a successful entrepreneur for many times. He has a resume in traditional finance and computer engineering ability. He is the founder of eight dimensional capital and manages a fund with a scale of more than 60 million US dollars. At the same time, he is also an investor and development contributor of trust token. He has established a solid program for on Chain Governance and stacking of truefi V2 and contributed to the design of v2. Meanwhile, parallel is also the only three projects of Dan Boneh, a well-known Stanford cryptography Professor, as a technical consultant. The other two consulting projects are well-known venture capital funds a16z and Chia.

Financing:

According to reliable sources, parallel has just completed a round of tens of millions of dollars a financing led by polychain. After this round of financing, parallel is likely to become the project with the highest financing amount in Poka ecology. In June this year, parallel has completed a seed round financing of US $2 million. Parallel's investors include polychain capital, Pantera capital, Alameda research, Lightspeed ventures, Breyer capital, 8 decimal capital and hypersphere ventures. At the same time, it has also obtained the support of the official grant of the Web 3.0 foundation.

Bidding strategy:

Parallel will take out 2.5% of the total token supply of its leading network Heiko finance to encourage users participating in the Kusama parallel chain slot crowdfunding. The $HKO token of the reward is allocated according to the total number of participating KSMS who finally participate in their crowdfunding.

According to the number of approximately 13W KSMS in the last place in the first round of auction, assuming that parallel auctions the first slot of Kusama in the new round and raises 12-13w KSMS, 1ksm can obtain about 200 $HKO awards.

reason:

Although the parallel team does not have much information at present, when its project is only a few months old, the product completion degree, code quantity and financing degree of the project can reflect the strength of the project. Digging into the founder's resume is still very illustrative. The founder is a successful entrepreneur with both financial strength and computer for many times. He also has the design experience of star defi project trust token. If he knows finance, technology and experience, he will obviously be familiar with defi project. Behind it, there are professional cryptography experts as consultants, which have done a good job of technical support for the project.

Parallel can also get the support of two top investment institutions in the circle, Pantera capital and polychain capital, which also shows that this group of professional investment institutions in the field of encryption are very optimistic about their team and believe in its potential in the defi track after adjusting parallel. It can obtain a new round of larger-scale financing and become the project with the largest financing amount of poca ecology, which also shows the capital's confidence in parallel. In addition, parallel recently announced that it was selected as a member of the defi Alliance - a top defi incubator. Only parallel and ACALA are members of the defi alliance in Boca ecology.

What parallel does is not an application of defi, but more like a collection of multiple applications, belonging to the niche of the platform of defi. From the perspective of the product route being developed by the official, there are already lending protocol, liquid stacking protocol and AMM products, which is a more comprehensive parallel chain of the nature of the defi platform.

From the first round of slot acquisition, defi has become the focus of attention because it is the easiest to land. Its ranking is defi platform, smart contract chain, privacy computing and defi application. Then, as a defi platform with the same positioning as ACALA, parallel is also worthy of its follow-up development.

2、Altair(Centrifuge)

Basic information:

Altair is the leading network of centrifuge on Kusama. Once the parallel chain slot is obtained, Altair will start on Kusama as a blank chain, perform runtime upgrade soon, and enable functions such as account, balance and governance. Centrifuge is one of the first companies to start parallel chain on Boca. It realizes the legalization of real-world assets, places invoices, houses and other commodities on the blockchain, and users can get some loans. It is a new defi model, which injects real asset value of up to trillions of dollars into defi.

Team situation:

The centrifuge team consists of Cassidy Daly, Michael ruzic Gauthier, Dennis wellmann, Miguel HERV á s, Alina sinelnikova and Colin Cunningham. They have VC and finance experience from BMO capital markets, netscientific group and Berenberg, engineering experience from stellar, satoshipay and taulia The entrepreneurial experience from chlu and the research and academic experience from Macquarie University have a good technical level.

Financing:

Centrifuge was supported by VC investors in the top traditional and encryption fields, and obtained a seed round financing of US $8 million from blue yard, Atlantic labs and other companies in the first quarter of 2018. Later, another $4.3 million financing was completed, led by Galaxy digital and iosg, and invested by Rockaway, fintech collective, moonwhale, distributed capital, trgc and hashcib.

Bidding strategy:

Altair participated in the auction of Kusama's first parallel chain slot, but did not get a good ranking. Its parallel chain slot auction strategy will snapshot the balance on the centrifuge chain, and then allocate it to CFG token holders 1:1. At the same time, all participants who lock KSM and support Altair to obtain parallel chain slots will receive air as a reward. Each KSM will be rewarded with 50 + air.

reason:

Centrifuge's goal is to connect up and down the chain, introduce real huge assets into the blockchain, and endow these assets with the most advanced defi applications. It is an niche with broad market prospects, but it is not easy to combine real assets, which is why there are few competitors in this niche.

Centrifuge is the first group of pioneers. While constantly exploring the niche, it also vaguely sits at the head of the niche. As more and more traditional enterprises and institutions are open to cryptocurrency, more real assets will have the demand for defi, and centrifuge has unlimited prospects.

3、Basilisk(HydraDX)

Basic information:

Basilisk is the leading network of hydradx. It is a cross chain circulation agreement. In collaboration with hydradx, basilisk is committed to creating a friction free (loss) certificate exchange middleware that everyone in Boca ecology and other ecosystems can easily use and enjoy. A token model inspired by the link curve is adopted to deal with the exchange of multiple assets in the universal pool and coordinate the relationship between different components and protocols. Basilisk officials have put forward a grand vision to provide decentralized finance with ocean like liquidity. It is the preferred liquidity provider focusing on the long tail of assets to meet the liquidity needs of new projects in different stages.

Team situation:

Hydradx was jointly developed by the Galactic Council and Zee prime capital and was inspired by a brainstorming by Zee prime. Jakub, a defi analyst at Zee prime capital, is the co-founder of hydradx and basilisk agreements. The team also includes mattigags, jakpanik and other professionals.

Financing:

At present, hydradx has obtained seed round financing, Kr1 and hypersphere lead investment, CMS, tenzor, DFG and other investment, and the specific amount is not disclosed. At the same time, hydradx is also one of the key track chain projects of the sub builders program.

Bidding strategy:

During basilisk's last participation in the Kusama slot auction, it was originally planned to bid for the third or fourth parallel chain slot and announced its crowdfunding plan. Basilisk launched the PLO incentive program. Ensure that the project has sufficient welfare through the hierarchical incentive system to use PLO to guide liquidity. All funds flowing into basilisk will receive Bsx pass rewards and additional HDX pass rewards. However, in order to join the parallel chain at the lowest price, basilisk withdrew from the competition only one step away from winning the fifth parallel chain slot.

reason:

As the fifth slot auction in the last round, it once competed with Bifrost, and finally lost to basilisk of Bifrost by a narrow gap. It is a strong competitor in the new round of slot auction. At present, basilisk has announced that it will participate in the second round of Kusama parallel chain slot auction. Let's wait and see its slot auction strategy.

4、Calamari(Manta)

Basic information:

Calamari is the leading network of Manta network. As the first parallel chain of privacy protection based on ZK snark in Kusama, calamari will provide privacy services for the whole Kusama's defi network. At present, calamari has realized two functions: maripay for privacy and mariswap, a decentralized AMM trading platform. It is the only network in the current Kusama ecological network that can ensure the decentralized interaction of pass, resist censorship and protect privacy.

Team situation:

Manta network team is composed of many senior experts and scholars in the field of encryption from Harvard University, MIT and other universities. Its team consultants include Jack Platts, co-founder of hypersphere ventures, Tekin salimi, partner of polychain, Ashley Tyson, former co-founder of Web3 foundation, Shuyao Kong of consensys, etc.

Financing:

Manta network previously completed the seed round financing led by polychain, Sanjian capital, multicoin, Alameda and hypersphere. It is also supported by grant of the Web 3.0 foundation and joined the substrate builders program. It is one of the projects that Dr. Gavin wood has been optimistic about for a long time.

Bidding strategy:

Calamari did not participate in the first round of Kusama parallel chain slot auction. It focused on the sixth parallel chain slot from the beginning and announced its crowdfunding plan at the end of July. Calamari will distribute up to 30% of Calamari's KMA to Kusama users. Most of the KMA will be held by community members. After Calamari obtains the slot, first carry out community governance, and then distribute the pass. At the same time, each KSM can obtain at least 10000 KMA.

reason:

Calamari, which provides a privacy environment on the chain, is an important direction of Web3.0, especially when combined with the most landing defi, which is just needed in the future. Therefore, it is also supported by well-known encryption capital such as polychain. Calamari has strong customization ability, and can achieve the same function while creating customized products for different projects. At present, cooperation has been reached with ACALA, subscan and other projects.

5. Other items

In addition to the above four projects, many high-quality projects are likely to participate in the second round of Kusama parallel slot auction. We will briefly introduce the following seven projects.

SherpX

Sherpx is the leading network of chainx. It transfers cross chain assets in a completely decentralized way, so that BTC and eth can circulate to other chain systems. But it is also an independent test network. Committed to becoming a cross chain hub of digital assets. It is an important participant in cross chain transactions. At present, sherpx has begun to participate in the second round of slot auction.

PolkaSmith

Polkasmith is the leading network of polkafoundry. It is a one-stop, borderless and frictionless DAPP factory, which can provide interoperability for defi and Web 3.0 ecosystems. Polka Smith gives users digital, secure and accessible control. Polka Smith will join the Kusama parallel chain slot auction to obtain 8 cycles of slots. If the auction is won, the crowdfunding contributor will obtain 100pks for each contributed KSM. At present, Polka Smith has begun to participate in the second round of slot auction.

Crust Shadow

Crush shadow is a parallel network of crush. It is an incentive layer protocol for decentralized storage based on tee's local storage verification. It has the ability to support the decentralized computing layer and build a distributed ecosystem that attaches importance to data privacy and ownership. As a bridge using Kusama parallel chain resources, crash shadow will undertake the information exchange between Kusama parallel chain and crash network (main network). This is crucial to the development of the crush network.

Robonomics

Robonomics is an Internet of things project based on substrate, which integrates the network physical system with the human economy. The network client is called Aira. Robonomics provides a tool for cooperation between blockchain network and robot economic network. For robonomics, Kusama, as the main pillar of Boca development, is the main battlefield for its priority development in the future. It is a milestone to obtain the parallel chain slot of Kusama network.

KILT

Kilt is a decentralized digital identity project in Germany, which enables enterprises and individuals to use digital identity to control their own data. Designed by botlabs, CTO INGO R ü be was the director of Hubert Burda media and it projects at Axel Springer. Kilt protocol users only need to provide information once, the application can continuously access the information, and the user can retain the control over the shared data. The addition of Kilt protocol to Kusama plays a very important role in the application of international trusted blockchain.

Genshiro

Genshiro is the DFI parallel chain of equilibrium, which is not just a copy of equilibrium. Genshiro is the test site before equilibrium's future products are deployed to Boca. Genshiro will iteratively implement some new functions, such as derivatives, perpetual contracts, futures contracts for gold, ETFs, commodities and stocks. This has a positive effect on releasing the potential of the defi market.

Sakura

Sakura is clover's leading network. It is a substrate based defi service platform that provides an easy-to-use and interoperable blockchain infrastructure to reduce the threshold and cost of developers. Sakura supports both EVM and wasm, providing a one-stop high-speed cross chain experience.




Postscript


The importance of Kusama slot auction for Boca's ecological development is self-evident, which is why Boca officials will send several articles to review and summarize this process after the first round of Kusama slot auction.

andThe upcoming second round of Kusama slot auction is bound to bring more lock ups to Kusama and more projects will participateAfter all, the highlight of the first round has been completed, and the rest will usher in greater competition. This is why we need to pay attention to more powerful projects, especially rising stars such as parallel finance. After all, there is an old saying in China that "plan before move, know and get".

Of course, as the slot auction strategy in our article says, with strong endorsement and traffic, participating teams also need to pay attention to their slot auction participation strategy and timing. Only in this way can we achieve twice the result with half the effort.

The bell of September is about to ring. For Kusama, another big play is ready to be staged. We will wait and see who will take the lead this time!

The information provided by *Polkadot research institute does not represent any investment hint. The articles published represent personal views only for reference. In view of the fact that no digital asset related policies and regulations have been introduced in China, Chinese mainland users are cautious about the development of Crypto.


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