DeFi Project Karura wins the first parachain slot auction on Kusama

By July 21, 2021DeFi
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Key highlights:

  • DeFi-Projekt Karura has the first parachain slot auction on Kusama. won
  • The project won a 48-week parachain lease
  • The users supported the offer of the project by awarding over 500,000 KSM and the supporters will be rewarded with KAR tokens

Karura wins the first Parachain slot auction on Kusama

The first parachain slot auction on Kusama’s blockchain platform is closed – the first project that will have its own parachain on Kusama is Karura, a blockchain designed as a decentralized financial hub for Kusama. The project received a 48-week lease to operate a Kusama Parachain.

Parachains are customizable blockchains created using the Substrate framework. You connect to the Kusama Relay Chain and benefit from its security. In addition, Kusama offers strong interoperability between all the different parachains connected to the relay chain. Polkadot also offers a very similar concept, but its governance parameters are stricter than those of Kusama. Parachains are expected to go live on Polkadot after the auction system and technology prove their worth on Kusama.

Karura plans to offer kUSD, a stablecoin backed by cross-chain assets. The project is also working on a decentralized exchange and a trusted staking derivative that will allow KSM stakers to maintain access to liquidity even while their coins are being staked.

The project managed to raise over 500,000 KSM (valued at approximately $ 100 million at current prices) to support its offering. On Kusama, users who want to support parachain slot auction bids from their favorite projects can lend their KSM to the projects. Users can access their KSM again after the project’s parachain lease expires.

Most projects will likely choose to give tokens to users who support their Parachain slot auction bids. In the case of Karura, users were rewarded with an allocation of the project’s KAR token. More than 15,000 stakeholders have closed their KSM to support Karura.

Karura also has a sister project called Acala that is developing similar DeFi solutions for the Polkadot blockchain platform.

There are currently 4 more Parachain auctions planned – they will take place weekly between today and July 13th.

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