AMA Recap: Kusama Parachain Auctions - Session 1 for Shiden Network (SDN), Crust Shadow (CRU) & Bifrost (BNC)
OKExHere are the event highlights of Kusama Parachain Auctions' Ask Me Anything session on Telegram — OKEx Community AMA Series
On June. 16th, OKEx hosted a live Ask Me Anything session on its official Telegram channel and answered questions posted by users.
The purpose of the event was to introduce Kusama Parachain Slot Auctions as a platform to OKEx community.
Here's how the AMA transpired.
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Admin: Warm welcome to all of you. 🌹
Alright, I will start with a brief introduction for our Guests profile now.
First of all we have Sota Watanabe, the Founder of Plasm/Shiden Network. He is also a task force member of Trusted Web Council led by Japanese government. Welcome @sotaweb3 to today OKEx AMA🔥
Next, we have Dean Yan, Product Manager of Crust. He has extensive experience in information security and blockchain technology. He has been working on supply chain blockchain-based projects at Cisco, and one of his innovative projects was released at the Global Development @ Cisco Summit. Welcome @deanyyd to today's OKEx AMA🔥
Lastly, we have Tyrone Pan, Bifrost Product Manager. Graduated from the University of Glasgow with a master's degree in economics, Dissertation has conducted in-depth research on the new financial model of blockchain, and participated in the public course of blockchain technology and application by Professor Xiao Zhen of Peking University. Hope to empower decentralized products through learning. Welcome @tyronepan to our AMA today🔥
It is a pleasure to have you all here today and I hope we are ready to start with our First question of the day.
Sota: Thank your for having me today!
Admin: So @sotaweb3 to start with, I would like to ask you few questions
Part 1
Admin: What is Shiden Network?
Sota: Shiden Network is a multi-chain decentralized application layer on Kusama Network. Kusama Relaychain does not support smart contract functionality by design - Kusama Network needs a smart contract layer.
This is where Shiden Network comes in. Shiden supports Ethereum Virtual Machine, WebAssembly, and Layer2 solutions from day one. The platform supports various applications like DeFi, NFTs and more.
Admin: What is the benefit of joining Shiden's crowdloan?
Sota: Only 1 day left to get a 20% bonus and limited NFTs. The early you join our crowdloan, the more SDN you can get.
Kusama allows Parachains to source tokens for their Parachain bids in a decentralized crowdloan. Shiden Network is conducting a crowdloan campaign to secure a Parachain slots.
The crowdloan mechanism allows people to contribute by agreeing to lock up their own KSM until the end of the lease, and SDN token (the native token of Shiden Network) is distributed based on both the amount a user locks and when they lock.
This is the guide how to join our crowdloan.
https://medium.com/plasm-network/shidens-crowdloan-has-started-d291c0f73b7
Join our crowdloan and get $SDN!
Admin: What makes Shiden unique in the Kusama ecosystem?
Sota:
DApps Staking
This is very strong and interesting feature only Plasm has in the Polkadot ecosystem. https://docs.plasmnet.io/learn/core-features/dapps-reward 43
PLM/SDN token holders can stake on validators as well as dApps creators. By doing so, both nominators and dApps creators can get basic income from block reward. To make the long story short, you can earn PLM tokens by making application on Plasm Network though you have to pay high gas fee to develop applications on other networks.
Multi-Virtual Machine and Multi-Chain Future
Plasm Network is a multi virtual machine. This means that we support both Ethereum Virtual Machine and WASM so that you can deploy Solidity, Vyper, and ink! contracts on Plasm Network. In addition to that we support multiple platforms. We are currently making Secret Network bridge, Ethereum bridge, and more. (Disclaimer: Acala may have a similar vision)Layer2 Implementations
Currently we are implementing ZK Rollups and Optimistic Virtual Machine. In the future, dApps developer can deploy contracts both on L1 and L2. We assume a lot of Ethereum projects will use Rollups solution. They can use the same architecture on Polkadot so that they don’t need to waste their work on Ethereum when they make a multi-chain application.
Community Driven Project
Plasm Network is a community driven project. We distribute 65% of the total supply to the community members through lockdrops. In addition to that, I know that many projects only raise funds from very selected VCs with huge discount and community members can’t get tokens at the early stage. This is not our philosophy. We distributed tokens to our users first without receiving any funds. Then we raised funds from VCs. I believe that this makes a difference in the long run.
Admin: Thank you sir @sotaweb3.
Now let's go to our 2nd guest of the day.
@deanyyd ready to answer now?
Dean: Yes
Admin: The Kusama parachain auction has announced its schedule. Crust, What are some highlights of your PLO rewards?
Dean: Crust uses the parallel network Crust Shadow to conduct Kusama slot auctions, and the native token is CSM.
Crust has invested a total of 90,000 CRU + 18 million CSM rewards for KSM supporters. Rewards are divided into crowd loan activity period + future lease period.
During the crowd loan period, we give a reward of 1KSM: 0.07 CRU+14 CSM per week. The reward is issued once a week. No matter whether Crust can successfully win or not, supporters can get their rewards. If the bid cannot be won, the supporter's KSM will be refunded immediately after the crowd loan period ends.
If the slot can be successfully shot, the supporter will get 1KSM: 1.5 CRU+300 CSM at the leasing period.
At the current price, if you pledge KSM to Crust, and you can get an annualized income of 25%
Details could be find here: https://medium.com/crustnetwork/join-the-crust-shadow-crowdloan-for-the-kusama-parachain-slot-auction-e0f041ae9627
Admin: The launch of the parachain is also one milestone of Polkadot. After winning the parachain, how will decentralized storage empower the Web3.0?
Dean: The vision of Web3.0 includes many aspects, including data security, privacy protection, ownership of data and identity, and so on. It's a new world. Crust, Darwinia and Phala are all in place to provide infrastructure. Once Crust is connected to the parachain, it can complete the file storage and distribution layer protocol for the Web3.0 ecosystem.
Then look at the specific scene. Crust can be applied in scenarios such as decentralized website/dapp deployment, off-chain data storage, and decentralized cloud storage services.
Admin: Here, we have questions that users are most concerned about：How to participate in your crowdloan?
Dean: We have reached cooperation with many platforms and exchanges, you can choose the platform you are used to to vote. For centralized channels, we recommend OKEX, Math Wallet, Kraken and Hotbit. We recommend Nutbox, Newland, Atoken and Polkadot apps for decentralized channels.
We summarized an article, https://medium.com/crustnetwork/join-the-crust-shadow-crowdloan-for-the-kusama-parachain-slot-auction-e0f041ae9627 which can also be found on our Twitter： https://twitter.com/CrustNetwork, as well as an article about auction reward details. Welcome everyone to follow us on Twitter.
Admin: Do check on that everyone. A very informative Article.
Thank you @deanyyd.
Last but not least.@tyronepan it’s your turn now. Ready sir?
Tyrone: Greetings all, I'm Tyrone from Bifrost.
Let's roll
Admin: Why does Bifrost need a Parachain?
Tyrone: An important reason why Bifrost chose Polkadot's ecosystem is that it doesn’t need to maintain a set of consensus by ourselves. This is also an obvious advantage of being a parachain to connect with relay-chain, which enjoys the parachain shared security provided by all parachains. Maintaining a set of consensus security requires a lot of investment in capital and labor costs; It dosen’t make sense for a creative organization to quickly produce a killer application. So, after we accumulated development experiences and researched about single-chain and multi-chain framework, we finally decided to develop Bifrost by Substrate, and becoming a parachain will enable us to accumulate the liquidity from different PoS chains to Polkadot layer-one, with shared security, but not only a smart contract.
At the same time, Bifrost can use smart contracts to deploy services on heterogeneous PoS chains outside Polkadot. For example, our Ethereum derivative vETH will become an ERC-20 and Substrate base dual-asset after bifrost mainnet on parachain is launched, and it will take much external value to Polkadot ecosystem beyond building bridges.
Admin: Users participating in the Kusama slot auction will face a lock-up period up to 48 weeks. How does Bifrost unlock the staking liquidity during this period?
Tyrone: Yes, we have completed the development of a solution that allows users to release liquidity during the bidding bonding period: slot auction liquidity protocol, which we call SALP, you can check the Bifrost Kusama crowdloan with SALP at: https://ksm.vtoken.io/
SALP is Bifrost's original creation. Our original intention by studying slot auction derivatives is to help users unlock the liquidity of the 6-48 week KSM bonding during slot auction. At the same time, considering the uneven auction redemption period and other factors that may affect the liquidity of derivatives, Therefore, we create derivatives vsToken and vsBond, which represent asset utility and equity attributes.
Users can buy and sell vsToken at any time to enjoy liquidity, and hold vsBond to receive auction rewards issued by the parachain. This is something that other slot liquidity projects cannot do. As a financial product, derivatives with non-uniform liquidity will have a great impact on the user experience.
Here is an example: Vote 1 ksm to Bifrost, you’ll get 1vsKSM+1vsBond-Bifrost, so you can trade both of them during the Bifrost parachain lease period. Maybe you want to sell 1 vsKSM for 0.98 KSM (0.02 is discount in liquidity trading pool), or you can wait until Bifrost parachain retires, destroying 1vsKSM+1vsBond to redeem 1 KSM without cost. Holding vsBond-Bifrost can receive BNC rewards automatically, or you can sell it on the Bifrost vsBond market.
Admin: There are many Canary networks competing for the first few kusama slots, what is Bifrost’s bidding advantage in it?
Tyrone:
1. Mainnet bidding advantage: Bifrost, as the basic protocol for the DeFi derivative assets of Polkadot, will not issue a Canary network and run two sets of business logic, because doing so will cause the community to split and dilute the liquidity of derivatives. Therefore, the parachain strategy adopted by Bifrost is to run only one mainnet. When the Kusama slot expires, the data will be snapshotted to Polkadot's genesis block to complete the migration of the mainnet from Kusama => Polkadot, and so our derivative (vToken) usage scenarios have been fully upgraded. Due to the strong binding relationship between the value of BNC and the liquidity of vToken, under the impetus of a complete economic model, the value of BNC will steadily advance with the business development of the main network.
2. Release KSM lock-up liquidity: Bifrost's unique slot auction liquidity protocol SALP will support Bifrost slot auction for the first time in Kusama auctions. All KSM pledged through ksm.vtoken.io will receive liquidity derivatives vsKSM+vsBond. The former is used to release liquidity, and the latter is used to receive parachain rewards.
3. SALP derivatives are rich in usage scenarios: firstly, vsKSM as the basic function of the derivative token will create the liquidity release of vsKSM/KSM, and secondly, vsBond as a semi-homogeneous token will give birth to a parachain-like NFT trading market for reward certificates. In addition to being used to redeem the native KSM, vsKSM+vsBond's innovative economy mode will be able to obtain rewards from Bifrost and other parachains in the form of pledge mining.
4. The 50% reward will be released immediately and the transfer will be initiated: Bifrost will initiate the Token Generation Election proposal after the parachain is launched. Once the proposal is passed, all mainnet BNC vouchers will be converted to native tokens and the transfer will be initiated. 50% of the parachain auction rewards will be released immediately, and the remaining part will be released linearly within 48 weeks.
Admin: What are the benefits for blockchain projects launching on KUSAMA?
Sota: Simply the benefit is the cost!!
Launching on Kusama is much cheaper than launching on Polkadot. In this future, every project has an opprtunity to directly launch on Polkadot. Currently, more than $200M KSM is locked through crowdloan, but DOT will be locked much more during the Polkadot auction and a project needs to collect more DOTs. However, Polkadot Parachain is not launched, so the best strategy right now is to launch on Kusama first!
Dean: From the perspective of the project itself, there are two benefits . One is, it can communicate across chains so that the application of the project can be expanded. The other one is, it can help the project spread consensus and let more people understand the project.
From the perspective of the entire Kusama ecology, it is ecological co-construction, because Kusama itself is only a Layer0, and its value lies in helping different chains to establish connections, so the more parallel chains on it, the greater the value of the platform ecology.
Tyrone: The lack of performance of Ethereum has attracted the attention of the Ethereum development team. The reason is that Ethereum is not a layered blockchain network. The framework of mixing the settlement layer and the application layer has led to the fact that Ethereum has more and more crowded applications and the settlement is lower. The slower the processing speed, the higher the gas fee. In addition, smart contracts are actually not "smart" enough, and their code logic can only be triggered passively instead of actively executed, which also limits the development space of projects based on smart contracts.
Admin: Thank you very much for the detailed explanation and it’s been a great opportunity for our community to learn more from you all via this informative AMA sessions.
Part 2
Shiden Network
1. Does your project support staking program?? if yes. how is your stake system work, what is the requirement for user if they want to stake in your platform???
Sota: Shiden's staking mechanism is very unique and different from other parachains. You can stake $SDN on DApps and network. By staking $SDN on DApps, you and DApps developers can earn staking revenue from block reward. So, we provide a basic income for all developers! Make DApps, Earn $SDN.
In our token economics, the more DApps are created, the more SDN will be locked. This means that the more DApps, the less liquidity. That's why our token price is increasing.
2. How is Shiden development going? Can you describe in detail current development efforts, market expansion plans, expected applications, and when will they become commercially available?
Sota: We will launch our Shiden Network Portal in 2 weeks. Developers and users can use Shiden Network without writing codes. After that, we prepare for becoming one of the first Polkadot Parachain in this year!
Crust Network
1. Can you give the role of $CSM in the Crust Network ecosystem? And does the Native Token $CRU affect or impact $CSM ?
Dean: The CSM token is Crust Shadow’s native token. The total initial amount of CSM is 200 million, and will be allocated to the community. CSM can be used in the following aspects:
Staking to maintain the coming GPoS consensus of the Crust Shadow
Used to guarantee the Crust Shadow nodes
Serving as guarantee deposit for providing recourse service
Serving as a transaction fee for using the Crust Shadow
Used to purchase resource services
Used for election and voting of on-chain governance mechanism, and vote on proposals
Used for privacy encryption of data, exchange and trading of data assets, and censorship governance of data content
Used to participate in Maxwell’s storage market related activities
Users can use it to obtain discounts related to Maxwell’s or Crust Shadow’s storage market rates
Can be further used to exchange CRU in Maxwell market revenue pool.
You could find detailed info here: https://medium.com/crustnetwork/crust-shadow-lightpaper-341ac5f0a1bb
2. Can you list killer features of Crust that makes it ahead of its competitors? What is the competitive advantage your platform has that you feel most confident about ?
Dean: Crust Network is a decentralized storage application developed based on the Polkadot substrate framework and provides an incentive layer for IPFS storage nodes. Compared with many other blockchain applications, our functions are easier to understand . Everyone should have used some cloud products. Crust and these cloud products provide similar services. Users can use Crust to store their own files and transfer with others. our users can be individuals, companies, organizations.
So how are we different from traditional cloud vendors? Traditional cloud vendors have their own large centralized computer rooms to store data centrally for users. Crust is more like a form of "sharing economy". We do not provide storage space. The storage space is provided by Crust nodes. The Crust public chain bridge the gap between nodes and users, and is responsible for scheduling users' orders. Then pay salaries to the nodes. As a result, users' files are "distributed" and stored on nodes all over the world, rather than being controlled centrally. In addition to security, distributed storage can also bring users a lower price.
Bifrost
1. Why did you choose Polkadot network? What are the benefits to your project? Are you planning to launch your mainet or switch to other blockchains in the future?
Tyrone: The reason why we chose Polkadot is that we actually did a staking liquidity by using smart contact before, and we accumulated lots of experience from it. But we found the trend of blockchain is to evolve from single chain to multi-chain. So we chose to develop Bifrost by Substrate. By using parachain, we can easily to make contact with external blockchain under the interoperability of Polkadot, which will bring multi derivative assets from external blockchain to Polkadot. For example, we’ve accumulated 18,000+ ETH from ETH 2.0 derivative vETH. These part of assets will be the first external assets when Bifrost becomes a parachain.
2. What's the focus of the Bifrost now? Build and develop products, win customers and users or partnerships? Are there any plans to burn or block unsold $BNC tokens? control flexibility, cost and security?
Tyrone: We just focusing on how to make a friendly product for users and attract more users to DeFi. That’s another reason why we chose Polkadot, by using parachain, Bifrost don’t need to maintain a self consensus. So we can focus on the derivative market and products. The Kusama parachain bonding derivative will be available to use as soon as Bifrost wins the auction, which means you will have chance to withdraw your auction bonding KSM soon. Support Bifrost auction at: ksm.vtoken.io