The Latest Guide About Parachain Auctions

According to CoinGecko, $DOT has been up 96% since October 1st. In anticipation of the Polkadot Parachain Crowdloan event, the Crowdloan participants have locked $DOT worth USD 0.9 million in the last four days.

There are many ways to participate in a Polkadot Crowdloan. Therefore, in this article, you will discover which Polkadot Parachain Auctions are, the pros and cons, which one you should prefer, and Why.

Pros and Cons of Crowdloan Platforms.

There are multiple ways to support a parachain crownloan. Before selecting a platform, it is essential to understand the Pros and Cons of each crowdloan platform:

1. Through Centralized exchanges

   1.  Pros: Easy to use.
   2. Cons:
      1. Centralized and hence locked with a third party for two years
      2. It does not give all rewards which you might get by directly participating

To participate in the Parachain auction with Binance, you need to go through APY/rewards of some projects in general. The terms and conditions are 712 days and BDOT after 45 days (optional).

2. Through Polkadot.js: This is the official app of Polkadot

1. 1. Pros: 
      1. All projects can be managed using a single app.
      2. Decentralized, you own your keys.
   2. Cons:
      1. Complex to use
      2. Can miss out on additional Bonus (example: Referral Bonus)

3. Through the Crowdloan page of each project

1. 1. Pros:
      1. Acts as a frontend to Polkadot.js
      2. All additional bonuses (early bird, Kusama Participation, referral, etc. included)
      3. Has rewards calculators
   2. Cons:
      1. Non-integrated. Each project has its wen crowdloan page.

The prerequisite is to participate in this mode to download the Polkadot.js Chrome extension and create a wallet. 

Then, let’s have a look at some of the Notable Crowdloans on Polkadot:

1. ACALA

Acala is the DeFi hub of Polkadot. It is an Ethereum-compatible platform for smart contracts. The platform offers a trustless staking derivative, a multi-collateralized stablecoin called “aUSD,” and an AMM DEX.

Source: Acala

Nowadays, the platform has more than 59,000 participants and 10.8 million $DOTS contributed. There are four ways to contribute:

• Contribute directly.
• Contribute & Stay Liquid.
• Use an Exchange.
• Use a wallet.

2. EFINITY

Efinity is a cross-chain NFT project that you need to keep an eye on. This project was built by Enjin, the pioneers in the NFT gaming space. The platform is trying to solve some of the problems faced by the NFT space by providing a user-friendly platform for the mainstream NFT experience.

Source: Efinity

Nowadays, Efinity’s crowdloan will be launched very soon, so we recommend you to subscribe to its website.

On the other hand, it’s essential to know that Efinity’s best features:

• Bridge: Cross-chain NFTs are imported into Efinity via a bridge.
• Rewards: The $EFI token is distributed to creators, traders, and collators.
• Governance: $EFI holders may submit and vote on proposals.
• Fuel Tanks: Creators can choose to subsidize the costs for their users by depositing $EFI.
• Price Discovery: Users who bid on NFTs from any chain receive rewards represented in $EFI.
• NFT Elaboration: Users can modify or create NFTs through an off-chain message.

3. ASTAR

Astar is a scalable, interoperable, and decentralized Web3.0 platform. It is closely related to Shiden Network, winner of Kusama’s Auction #3.

Source: Astar

In the Astar crowdloan event, users need to stake $DOT to get Astar’s native token, $ASTR. You can get a 20% early bid bonus in 7 days. This event already has more than 11,000 members, with more than 1.9 million $DOT distributed.

To participate in the Astar crowdloan event, there are four rules:

• Secure a slot during the Polkadot parachain auction.
• Eligible users can apply for one of the three bonuses levels.
• After one month of having assured a Polkadot parachain slot, $ASTR to participants.
• The number of $ASTR is related to the number of $DOT that is locked.

Nowadays, Astar has a TVL with more than 150,000 in ETH. Also, with 30,000 community members and more than 40 ecosystem projects. The platform connects multiple layer1 blockchains to Polkadot.

4. MOONBEAM

Moonbeam is the relative project of Moonriver, Kusama’s second parachain. This platform helps to build decentralized applications on Polkadot. 

Source: Moonbeam

Moonbeam is much more than an EVM implementation: it’s a highly customized Layer 1 chain that matches Ethereum’s Web3 RPC, accounts, keys, subscriptions, logs, and other features. The Moonbeam platform adds on-chain governance, staking, and cross-chain integrations to the standard Ethereum feature set.

The Moonbeam crowdloan foundation is open. Here you can earn $GLMR tokens as rewards by supporting Moonbeam. You need to follow these steps to participate:

• This crowdloan will remain open until December 16th, 2021, at 03:00 UTC or until a parachain slot is secured by winning an auction, whichever comes first.
• To participate, you will need to agree to the Moonbeam Crowdloan Terms and Conditions. To sign the terms and conditions, this application needs access to the Polkadot.js extension in your browser.
• If you have completed the Pre-Registration, please ensure you use the same address you used when signing that transaction.

5. LITENTRY

Finally, the last Polkadot Parachain Auctions are executed by Litentry. This is a Decentralized multichain Identity Aggregation protocol. With Litentry, users can manage their identities and get real-time credit.

Source: Litentry

This platform is building a web3 hub on Polkadot. Therefore, to participate in Litentry crowdloan, you need to stake your $DOT to help the platform secure the funds to bid for a parachain slot on polkadot. In return, you’ll earn Litentry’s native token, $LIT.

Also, becoming a Litentry’s contributor will give you these benefits:

• Privacy-preserving aggregated identity.
• Cross-chain credit/reputation.
• User screening service.

You will get a +2% bonus for crowdloan staking if you sign up for the waitlist now.

Therefore, we hope you’ve enjoyed the latest Polkadot Parachain Auctions.

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