As the time for parachain auctions draws closer, Karura, as Kusama's DeFi center and Acala's leading network, we hope to provide the community with the materials they need to fully understand Karura's products and vision. We believe that the community-oriented start-up method and passionate ecological development will pave the way for the new era of Kusama DeFi with the newly born Karura.
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Karura - DeFi Hub of Kusama
Become an early supporter of Karura, participate in Karura crowdfunding, and help Karura launch successfully on Kusama. All KSM locked in the crowd lending module will receive at least 12 KAR rewards (one year), and all KAR will be minted at the time of issuance, with a total supply of 100 million, and a community-first distribution model. Karura bids for a 48-week lease on Kusama parachain slots. When the 48 weeks are over, the KSM you supported will be automatically released and returned.
Read on to learn more about our approach to launch in sync with the community, the parameters of the Karura parachain auction and the Karura launch and governance roadmap.
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Why Karura?
Although Kusuma and Polkadot have the same set of code, they have very different communities, and both have demand for DeFi products and need stable assets.
At present, Kusama has a market value of 3.71 billion US dollars and has more than 900 validators. It has attracted a large number of developers and ecological projects. for forkless upgrades). Not only that, Kusama also provides superior scalability, capable of processing 166,000 transactions per second, and cross-chain interoperability with multiple other parallel chains, and finally bridged with Polkadot.
This is an exciting development environment and conditions. The Acala team can adjust the Acala mainnet to be deployed on Polkadot in the future according to the performance of Karura after it goes online.
"Acala will serve the Polkadot ecosystem as a true DeFi center, and Karura will serve the Kusama ecosystem as a true DeFi center"
With the development of the two networks, DeFi innovation will no longer be restricted by high fees and network islands. More importantly, Acala and Karura will help users enter the new era of DeFi by driving the same set of financial applications while empowering composability between two independent blockchain networks, protocols, and DApp ecosystems.
It all starts with the Karura Crowdloan and Parachain Auction
Like Acala, Karura will also become Kusama's one-stop DeFi center, because Karura also launched LKSM, a decentralized product that releases Staking liquidity, a cross-chain multi-asset collateralized stablecoin kUSD, and an automatic market maker mechanism. DEX, all these functions only require a small fee, and support all assets as fee payment types.
In order to go live, Karura must win the auction for the first Kusama parachain slot. This process requires enough KSM to bid strategically in candle auctions. While some projects may rely on large investors for this KSM, Karura will have a more diverse approach. Karura is using the crowdlending module to attract KSM support from the community to bid on parachain auctions. All Karura crowdfunding participants will receive KAR rewards.
If you still don’t understand the operation process of crowdlending and parachain auction, you can check out the 8-minute video below:
# Read more about Karura #
This article takes you to understand Karura, the Kusama DeFi center
Video Tutorial | Karura Asset Management
Acala Pioneer Network Karura empowers the billion-level Kusama DeFi blue ocean market
Focusing on Kusama Parachain Lease Offering (PLO), Karura is the first to participate
A fair and ethical token distribution
When designing the Karura economic model, the team has always been oriented by the Karura community and adjusted incentives appropriately. Moreover, Karura and Acala already have a user base of nearly 100,000+, and have launched a global ambassador program (the China ambassador program will be released soon), and we always believe that the community is the backbone of the project.
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Here’s how it works
1. Prepare your KSM and start unbinding
Only KSM holders can participate in crowd lending activities, and KSM needs to be unbound and can be freely transferred to wallets that have integrated crowd lending modules. (such as Polkawallet and Polkadot.js)
If you want to know which wallets support crowd lending and auction, please check this link: https://wiki.acala.network/karura/ksm-address/create-new-ksm-account)
If you want to know how to unbind KSM, it is recommended to refer to the following Polkawallet (mobile terminal) and Polkaodt.js (PC terminal) unbinding tutorials.
Polkawallet (mobile tutorial) link:
https://wiki.acala.network/karura/ksm-address/unstake-polkawallet
Polkadot.js (PC tutorial) link:
https://wiki.acala.network/karura/ksm-address/unstaking-your-ksm-tokens-on-polkadot.-js-extension
2. Lock your KSM
Kusama will enable the crowdlending module, a permissionless smart contract that will allow our community to temporarily lock up KSM to support Karura’s bids in parachain slot auctions. The KSM received for this module is locked for 48 weeks and automatically returned to the participant at the end of the rental period.
3. Receive KAR rewards
In return for the support of participants, all supporters will receive Karura network native Token KAR rewards. Every KSM that supports Karura will receive a minimum of 12 KAR rewards. Although this reward may be higher, it depends on the number of people supporting Karura and the intensity of the auction.
Once the Karura auction is successful, 30% of the KAR rewards received by all community members who locked KSM to support Karura will be released immediately after Karura goes online, which can not only be freely circulated and traded, but also be used for Karura DeFi products and ecology. The remaining 70% of the rewards will be given to supporters in a linear release until the end of the 48-week lease period.
Refer a friend and you’ll each receive 5% bonus rewards
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A sustainable token economic model
In the genesis block, the total supply of Karura network’s native Token is 100,000,000, which is fixed or deflationary, unlike many other projects that rely on inflation mechanisms to maintain sustainable development. We strongly believe in the shared security and scalability provided by the Kusama relay chain, so designing Karura's capacity and economic model will ensure the long-term future success of the project. (More 🔗:Build an irreproducible AUM asset management barrier through a new DAO operation method）
The core of Karura is decentralization. 60.87% of KAR will be committed to the community, ecology and network operations, including bidding rewards and liquidity incentive plans, treasury and reserves, and of course funding for ecological projects.
Interested in participating in the Karura crowdloan?
Subscribe to the Newsletter in the lower right corner of Acala's official website or directly copy the subscription link below to learn about the start time of Karura's crowdfunding module in advance.
