The Top 5 Most Profitable Polkadot Parachains

Polkadot, the eighth largest cryptocurrency with a market capitalization of USD 48.8 billion, kicked off its first parachain auction on Nov. 11th, and investors are lining up. Nearly USD 2.5 billion in $DOT tokens have been contributed via crowdloans.

But where should you be locking your $DOT? Where will you get the maximum rewards? Is there a way you can keep using your locked $DOT? In this article, you will discover the Most Profitable Polkadot Parachains. Let’s deep dive.

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 liquid $DOT, a multi-collateralized stablecoin (aUSD), and an AMM DEX.

Source: Acala Network

Also, Acala has partnerships with ChainLink, Moonriver, Shiden Network, among others. Major investors like Digital Currency Group, Polychain Capital, Alameda Research, and Coinbase Ventures have invested in Acala.

Acala Crowdloan Rewards Evaluation

ACALA has a total supply of 1 billion $ACA tokens, out of which 17% are allocated for crowdloan. The crowdloan target is 50 million $DOT.

Therefore, if you participate in Acala Parachain auctions, you will get the following rewards:

1. Base Rewards.
2. Self Referral @10%
3. VIP Bonus only applicable for referral with more than 3000 $DOT. We will exclude this from our calculation as this is not feasible for an average user.
4. 2% if you participate in Quest. 
5. 2% ff you would have participated in Karura crowdloan. 

Moreover, with all these bonuses, your rewards for every $DOT will look like:

• 3.88 $ACA (Considering 100% target met)
• 1 NFT (which might have some benefits in the future)
• 1 $lcDOT 

lcDOT is a unique value proposition where you get this liquid DOT as a reward and can mint aUSD in Acala’s Platform. With aUSD, you will be able to buy a fraction of a $DOT.

So ideally, you are not losing your $DOT staking rewards, so the final rewards now become for every DOT are:

• 3.88 $ACA tokens.

• 1 NFT (which might have some benefits in the future)
• 0.26 DOT (14% staking rewards for 22 months)

Just for information, the Karura token, which is the Canary Chain of Acala, did an all-time high of USD 13.2 with a total supply of 100 million tokens.

Note: The $DOT tokens you invest in Acala are locked for two years. However, you can still use lcDOT to earn rewards.

Finally, you can participate in Acala’s crowdloan page 

2. LITENTRY

Litentry is a decentralized multichain identity aggregation protocol. With Litentry, users can manage their identities and get real-time credit. Its native token, $LIT, has a supply cap of 100 million tokens. You can buy $LIT on Binance, Bitvavo, and Hoo.com, trading at USD 4.87.

Source: Litentry

Litentry Crowdloan Rewards Evaluation

$LIT has a total supply of 100 million tokens, where 20% are allocated for crowdloan and its All-Time High was USD13.3. The parachain crowdloan target is 8 million $DOT. If you participate in Litentry Parachain auctions, you will get the following rewards:

1. Base rewards.
2. 10% of early bird bonus.
3. 10% bonus for decentralized identity tasks.

With all these bonuses and participating via Parallel Finance, your reward for every $DOT will be:

• 3 $LIT (Considering 100% Target met)
• 4 $PARA
• 1 $cDOT (Parallel’s liquid DOT)
• 1 . DOT Domain name from Polkadot Name Systems (min 10 DOT to be locked). It is free only for the 1st year.

$cDOT is a unique value proposition where you get this liquid DOT as a reward and can mint a stablecoin to buy back DOT. So ideally, you are not losing your $DOT staking rewards. The Final Rewards now become for every DOT staked are:

• 3 $LIT (Considering 100% Target met)

• 4 $PARA
• 0.26 $DOT (14% staking rewards for 22 months)

• 1 . DOT Domain name from Polkadot Name Systems (min 10 DOT to be locked). Also, it is free only for the 1st year.

Note: The $DOT tokens you invest in Acala are locked for two years with no referral awards.

Finally, you can participate in Litentry parachain via Parallel Finance.

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. Nowadays, Astar has 150,000 ETH as Total Value Locked (TVL), and it aims to connect Ethereum and Cosmos blockchains to the Polkadot ecosystem.

Source: Astar

Astar Crowdloan Rewards Evaluation

ASTAR’s native token, $ASTR, has a total supply of 7 billion tokens, of which 20% are allocated for crowdloan. The Astar’s crowdloan Target is 35 million $DOT. Therefore, if you participate in Astar Parachain auctions, you will get the following rewards:

• Base rewards.
• 20% early bird bonus. 
• 1$ referral bonus.
• 10% bonus for shiden participants.

With all these Bonuses, your reward for every invested $DOT will be:

• 52.4 $ASTR (Considering 100% Target met)

Note: The $DOT tokens you invest in Astar are locked for two years.

Finally, you can participate via Astar’s crowdloan portal.

4. Efinity

Efinity is trying to solve some of the problems faced by the NFT space. It will provide a user-friendly platform for the mainstream NFT experience. Also, it helps developers to build their NFTs on flexible smart contracts. For users and collectors, Efinity is offering an interoperable platform with negligible gas fees.

As Efinity makes NFTs accessible for all, the overall NFT adoption is likely to go up.

Source: Efinity

Efinity Crowdloan Rewards Evaluation

Efinity’s native token, $EFI, has a total supply of 2 billion tokens, of which 10% is allocated for the polkadot parachain’s crowdloan. If you participate in Efinity Parachain auctions, you will get 15 $EFI tokens for every invested $DOT.

The positive side of investing in Efinity is that it has an experienced team supported by Enjin, and anyone can buy $BDOT tokens in Binance to participate in the crowdloan. On the other hand, the negative part is that every invested $DOT is locked for two years with no bonus rewards.

5. Moonbeam

The last Polkadot parachain is Moonbeam. The platform is the relative project of Moonriver, Kusama’s second parachain. Moreover, Moonbeam helps to build decentralized applications on Polkadot. Moonbeam dApps can integrate with Bitcoin and Ethereum too. 

Source: Moonbeam

Crowdloan Rewards Evaluation in Moonbeam

One of its native tokens, $GLMR, has a total supply of 1 billion tokens, of which 10% is allocated for the polkadot parachain crowdloan. The crowdloan target is 100 million $DOT. Therefore, if you participate in the Parachain auctions, you will get the following rewards for every $DOT is 1 $GLMR, considering 100% Target met.

On the other hand, the positive part of this crowdloan is that 30% of distributed tokens are minted at the beginning of EVM Moonriver. Also, the performance in the Kusama auction is 22 $MOVR/$KSM, equivalent to USD 6916 at ATH.

Finally, you can participate in the crowdloan through Binance. Therefore, Binance offers 20.9% APY and a share of 2750 $MOVR for early adopters. Also, you can stay liquid with $BDOT tokens. Tokens Received: 1 $GLMR + 1 $BDOT.

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