Polkadot's first round of slot auction ends, what role will the 5 parachains play?
Produced by the Polkadot Ecological Research Institute, it must be a boutique (the article is very long, it is recommended to collect it first and then read it)
background
Produced by the Polkadot Ecological Research Institute, it must be a boutique (the article is very long, it is recommended to collect it first and then read it)
background
When we talked about the Polkadot parachain again, it indicated that the first round of auction of the parachain has ended. In the early hours of this morning, we successfully collected 5 parachains and prepared to "summon" the parachain's official launch. We have been waiting for this moment for too long, and the Polkadot ecosystem has also been looking forward to it for a long time.
Up to now, the first batch of parachains have stood on the stage of history. They are Acala, Moonbeam, Astar, Parallel and Clover. The soaring TVL detonated the market, while Polkadot's flatness is embarrassing.
But now, we finally see the emergence of more gameplays. After all, basic functions such as smart contracts, Dapp applications, and DeFi have begun to have a rapid layout. As long as the parachain runs smoothly, Polkadot is no longer just a lack of functions. "Blank chain", but a "cross-chain hub" in the true sense, this situation seems to have come to an end.
At the moment, we can finally think from the perspective of God to think about the impact of the fact that the parachain is about to go online, and how the functions of these five parachains will empower the Polkadot ecosystem. This is what we are currently doing. to contemplate and even observe.
Recap of Polkadot's First Round of Slots Auction
1. Judging from the number of participants
Compared to the participation in the Kusama slot auction, the number of people participating in the Polkadot slot auction is much higher. It just so happened that the first four projects also successfully bid for the parachain slots on Kusama. Compared with the two, it is obvious that the number of people participating in the auction of Polkadot parachain slots has basically more than doubled. Of course, the statistics in the picture are definitely The interference of people who participated in multiple projects at the same time was not ruled out, but the data still support our conclusions.
There are many reasons for this. One is that most people have always regarded Kusama ecological projects as testnets, ignoring them or not optimistic about their value.
The second is that the parachain projects that have obtained slots on Kusama have been launched one after another and opened transfers, and naturally started transactions, and these project parties have given their Crowdloan participants relatively generous returns. With the wealth-creating effect of the Kusama ecological project ahead, Polkadot's parachain slot auction naturally attracts more participants.
The third is that the chip distribution of Polkadot and Kusama is different. Kusama is mainly airdropped by early investors, while Polkadot has experienced a large-scale public offering, and Polkadot itself has gained more consensus than Kusama of Xianxing.com. The more supporters, the more spread out the chip distribution.
2. Judging from the number of auctions
A total of 99.1132 million DOTs participated in the auction for the first five slots, accounting for 8.6% of the total 1.146 billion DOTs. The current participation rate of Polkadot Staking is 63.8%, so the circulating DOT rate is 27.6%.
However, there are some differences between Polkadot and Kusama at present, and it cannot be viewed according to the previous official assumption of "circulation: slot lock: Staking lock = 17:33:50". Because Kusama’s best staking rate is 50%, Polkadot has not yet launched the parachain, so the current best staking rate is 75%. With the launch of the parachain, this parameter will be adjusted back to 50% through referendum.
3. The gap between the final result and the expected
Judging from the results, with the preview of the Kusama slot auction, Polkadot’s ecological slot auction has a reference. Many project parties and participants have adjusted their strategies during this period. Therefore, the overall auction situation of Polkadot is different from that of Kusama. There are many similarities, but also something special.
The similarity is that we had expected that the competition for the initial slot would be very fierce, and there were also cases of grabbing the first slot and grabbing the last slot. The difference is that some project parties are also clearly aware of this, and choose to avoid their edge and start participating in the auction directly from the sixth parachain slot, or projects that have not participated in Kusama before choose to grab the first five slots. Therefore, the items participating in the auction are quite different from the first five slots of Kusama.
The same participants are constantly adjusting their strategies. Due to the good performance of Moonbeam on Moonriver on Kusama, many participants actively participated in Moonbeam, which made Moonbeam the project with the most DOTs and the most supporters in the top five slots. Karura of Acala on Kusama is far ahead of other projects. This again demonstrates one of the benefits of running PioneerNet on Kusama.
However, judging from the current data, some people may say that only less than 9% of Polkadot’s first five slots, and the amount of DOT support received by subsequent projects is also very small, and no more than five of them exceed one million. It is difficult to achieve the 33% of the previously set slot lock-up volume. Is the ecology unable to do it?
So, how should we look at this issue?
First of all, although Kusama has started the normalization of slot auctions, a total of 48 slots will be auctioned in a yearly cycle, but Polkadot has not yet announced the relevant plans for the normalization of auctions. Therefore, the current number of slots for Polkadot is still relatively limited, and scarcity will put pressure on projects that want to get slots as soon as possible, thereby increasing the demand for DOT.
Secondly, judging from the situation of Kusama, many projects in the second batch received higher support than those in the first batch, and most of them did not participate in the first batch of slot opening auctions. Most of these projects have not yet participated in Polkadot’s parachain slot auction. It can be said that potential players have not yet entered the arena. Didn't do it.
Finally, please realize again that Polkadot is still in its early stages. Although Polkadot has officially supported hundreds of development teams through grants or treasury, there are not many ecological projects that are truly mature enough to launch the mainnet and access Polkadot. many. To take a step back, if Polkadot really opens up 48 parachain slots like Kusama did, and the auction takes two years, then there will indeed be a period of time when the Polkadot ecology has not yet been developed, and there are still many slots , making the case where the scarcity of the slot is not high.
However, the logic of multi-chain ecology is gradually being verified. Regarding the dominance of DeFi, the proportion of DeFi lockups in Ethereum has also dropped from more than 90% in the past to about 65% today, and there are DeFi, NFT, and DAO. , chain games and many other mature application directions, so the story of multi-chain will be more verified by the market, and Polkadot can quickly issue chains and allow these chains to access Polkadot to enjoy the entire Polkadot ecology With the many advantages brought by cross-chain and scalability, I believe that the birth of more parachains will not be too far away from us.
What impact will the parachain have on Polkadot after its launch?
We mentioned before that the Polkadot ecology is divided into the economy within the ecology and the economy outside the ecology. The economies in Polkadot's own ecosystem are collectively referred to as the economy within the ecology, and those economies that are connected to the Polkadot ecology through transfer bridges are collectively referred to as the economy outside the ecology. The launch of the parachain means that Polkadot can at least officially start the economic development within the ecology.
Many of the first batch of Polkadot ecological projects to obtain parachain slots are platforms that support smart contracts and can host various DeFi and DApps. In particular, many of these projects have already won slots on Kusama and have been connected to Kusama's relay chain to start the initial ecological construction. Although these constructions took several months for the project parties to take pictures of the slots, then access the relay chain, and then deploy the application.
Fortunately, there is not much difference between the first network of each project on Kusama and the main network on Polkadot. Although it took a long time to debug on Kusama in the early stage, it is worthwhile, because when it is deployed on Polkadot, With the previous experience, this time you will be familiar with it, and it will be much faster. This means that for those parachain projects that have been fully tested on Kusama, after accessing Polkadot, they can quickly start ecological development, and this is one of the important meanings of Kusama to Polkadot.
However, the current Polkadot is still not perfect. First, Polkadot’s parallel thread has not yet been launched, and Polkadot’s isomorphic cross-chain is still short of the last link; second, XCM’s version is updated frequently, and smooth cross-chain between parachain projects has not yet been realized; Third, Polkadot's cross-chain bridge has not yet been realized, and the economy outside Polkadot's ecology has not yet been reflected. In addition, there are many basic functions such as the official system parachain mentioned before, as well as SPREE, BEEFY and other functions are still on the agenda.
1、Acala
Therefore, the complexity of Polkadot is far beyond that of other public chains. Please consider Polkadot as an early project instead of comparing Polkadot with many existing emerging but technically mature public chains. If you have to compare it, it is more appropriate to compare it with the parachain project on Polkadot.
5 Projects to Get Polkadot Slots Presentation
Acala is a one-stop Polkadot DeFi hub, providing a series of out-of-the-box DeFi basic modules for developers to build a series of decentralized basic stablecoins aUSD, DEX, and chain Staking derivatives for terminal The application used by the user.
Acala is committed to incubating and building truly decentralized financial applications, providing low-threshold financial stability and liquidity for the new Web3 economic world, so as to achieve a more open and fair future.
As the DeFi hub of the Polkadot ecosystem, Acala helps users realize multiple functions such as pledge, exchange, lending, and earning. Acala's Pioneer Network Karura is also the first project to win the right to lease Kusama parachain slots.
After winning the platform chain slot auction, Acala officially joined the relay chain on December 18. At the same time, Acala participated in Polkadot's first Metaverse Meetup, and attended Berkeley Blockchain Xcelerator 2021 Demo Day, Alumni Showcase & Career Fair to discuss the development trend of DeFi and DAO.
2、Moonbeam
In addition, it has also reached cooperation with many high-quality projects such as global decentralized storage provider OriginTrail and data aggregation solution SubQuery, and jointly released NFT with encryption algorithm artist Reva. After that, Acala will gradually complete the construction of decentralization in four stages, namely, crowd lending and genesis block, POA governance, council governance and national governance.
The successful access of Acala has provided Polkadot with important asset support. Occupying an important position in mixed and diversified finance, as an Ethereum-compatible project dedicated to the DeFi track, Acala allows everyone to enjoy the DeFi dividend of Web3.0 in advance with its rich products. Acala is like a water pump, allowing the assets in the Polkadot ecosystem to flow and make it full of vitality.
Moonbeam is an Ethereum-compatible smart contract platform on Polkadot, and its vision is to realize multi-chain interconnection. Moonbeam deploys the existing Solidity smart contract and the front end of DApp, acting as the smart contract chain of the Polkadot ecosystem.
Provide Polkadot developers with easy-to-use functional modules, so that the application ecology of Ethereum can be transferred to the Polkadot ecosystem in a soft landing style, and enjoy the shared security, interoperability and scalability brought by Polkadot .
Moonbeam's Pioneer Network obtained the lease right of Kusama's second parachain slot, and quickly built an interoperable smart contract platform compatible with Ethereum based on the Substrate framework.
Moonbeam will follow the launch process of Moonriver, shortening the original five stages to three, and adding new features to ensure the stability of the network. The entire function improvement plan will be completed in January 2022, and the GLMR transfer function will be activated after the end.
3、Astar
At the same time, Moonbeam has reached cooperation with many high-quality projects such as SushiSwap, Zenlink, Chainlink, dTrade, Lido, etc., allowing Moonbeam to occupy a place in the rapidly expanding multi-chain market. For Polkadot, Moonbeam takes advantage of the distinctive features of the Polkadot ecosystem and provides developers with a familiar development environment, integrating many well-known Ethereum protocols on it.
Moonbeam has organically connected the massive resources of Ethereum and the Polkadot ecosystem, laying the foundation for the era of multi-chain interconnection, making it easier for Ethereum applications to be replicated on the Polkadot ecosystem. It provides an important infrastructure for the outbreak of the Polkadot ecosystem.
Astar Network is an early technical project of the Polkadot ecosystem. It used to be called Plasm Network. It aims to become a multi-chain DApp center on Polkadot. It supports EVM, WebAssembly and Layer2 solutions, and provides the Polkadot ecosystem with what is necessary for smart contracts. Function.
Astar Network has received more than 5 grants from the Web3 Foundation, and successfully realized the construction of Layer 2 and Ethereum Virtual Machine. At the same time, Shiden, the pioneer network of Astar Network, obtained the third parachain lease right of Kusama slot auction, providing Kusama with a multi-chain decentralized application layer.
After obtaining the Polkadot parallel chain slot lease right, Astar will provide support for developers through its advantages in various aspects such as high scalability and functional diversity. At the same time, Astar's ecology is achieving rapid endogenous growth, and is building decentralized applications including synthetic assets, stable multi-chain DEX, games, and NFT markets.
4、Parallel
As a high-performance smart contract parachain based on the Polkadot ecosystem, Astar provides interoperability to many ecosystems such as Ethereum, BSC, and Avalanche. If Moonbeam enables applications on Ethereum to have a soft landing in the Polkadot ecosystem, then what Astar builds is a multi-chain and multi-virtual machine DApp center to make up for the smart contract function of the relay chain.
Many features such as Astar Network's support for Wasm, Layer2 compatibility, and empowerment of DApp in the economic model make it a position that cannot be ignored in the Polkadot ecosystem.
Parallel Finance is a decentralized currency market that provides Lending, Staking, and Borrowing products for the Polkadot ecosystem, bringing more liquidity to the Polkadot ecosystem. Depositors can lend funds and pledge at the same time, earning double interest, and borrowers can mortgage to borrow money.
After winning the card slot, Parallel will focus on the mainnet launch of the parachain and the launch of products. On December 10, it officially announced the launch of the first DOT license-free Crowdloan product Auction loan, providing users with the best liquidity and crowdloan contribution rewards.
Auction Loan is only the first step in the Parallel DeFi parachain mission. Parallel Finance is committed to innovating the DeFi ecosystem in Polkadot and has received extensive support from the community. The new round of financing that Parallel completed earlier enabled it to successfully complete the slot auction and team expansion, and complete the mainnet launch and release products in the next few months.
5、Clover
Parallel will be used to double the size of the engineering team within the next 6-12 months, perform security audits, and build Parallel Financ into a top-level DeFi parachain in the Polkadot network and multi-chain ecosystem.
Parallel's ultimate vision is to create the safest and easiest-to-use decentralized platform, making financial services accessible to everyone. Its innovative products such as Margin Staking, Auction loans and AMM will be able to bring unprecedented liquidity and capital efficiency to the Polkadot and Kusama ecology.
At present, Clover has launched its own cross-chain wallet and browser, and has cooperated with dApps on many different chains to carry out the first phase of the Clover ecosystem incentive plan, aiming to promote the adoption of multi-chain wallets. These projects cover DeFi To GameFi, Web3 to NFT and other fields.
postscript
Clover is committed to becoming the largest connector in the Polkadot ecosystem, and hopes to build a better multi-chain future with partners of all chains. It can seamlessly link the DeFi field and the Polkadot ecosystem, and expand with developers and project parties The ecology of Polkadot.
postscript
Although people are now talking about cross-chain and lost the enthusiasm of the past, the advancement of technology may not be limited by market sentiment. We still look forward to the interaction between chains and the innovation brought by Web3.0. Next, just wait for the bell to ring when 5 parallel links enter the relay chain and start producing blocks!
*The information provided by the Polkadot Ecological Research Institute does not represent any investment hints. The published articles only represent personal opinions and are for reference only. Since there are no policies and regulations related to digital assets in China, users in mainland China are requested to pay close attention to the development of Crypto.
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