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Ouyi OKEx Observation: What does Polkadot parachain slot auction mean for DOT and ecology?



On December 23, 2020, Polkadot co-founder Robert announced in an official post at PolkaWorld that Rococo V1, Polkadot’s dedicated parachain testnet, has been up and running, allowing community parachains to connect to the relay chain through cumulus. On January 12, Bruno Skvorc, a technical education member of the Web3 Foundation, tweeted the document website (Polkadot wiki) about Rococo V1 parachain test registration. Rococo V1 is expected to open parachain test qualification registration in the near future. Note: Rococo is a public testnet launched by Polkadot in August 2020 designed for testing the functions of parachains, and is jointly maintained by Parity Technologies and the Polkadot developer community. With the release of the Rococo V1 testnet, it means that the Kusama and Polkadot parachain slot auctions and launch will gradually begin. For the highlight of the "slot auction", the market has accumulated continuous enthusiasm and high expectations. As of January 10, the Polkadot token DOT has risen by 97% within a month, and its market value has surpassed BCH and ADA to rank No. six. So, what does the parachain slot auction mean for Polkadot? How can project parties and ordinary users participate in the Polkadot ecosystem? What impact will it have on the future of DOT? Ouyi OKX: In the near future, it will focus on four major directions: talent expansion, investment support, risk control and security, and product upgrades: On July 8, according to the official Twitter of Ouyi OKX, it has been encrypted for ten years, and BUIDL, which is the core anchor point, should be practiced To 'rescue' the industry, Ouyi OKX will devote its work to the four directions of talent expansion, investment support, risk control and safety, and product upgrading in the near future. According to official news, Ouyi OKX product end will continue to be optimized, and the Web3 wallet will launch functions such as malicious addresses and contract warnings to build a safer on-chain trading environment. [2022/7/8 2:00:40] 1. What is a parachain slot auction? Before understanding the parachain slot auction, you must first understand the structure of Polkadot. Polkadot is a scalable heterogeneous multi-chain blockchain. Cross-chain is its core vision. To achieve this goal, Polkadot consists of relay chains, parallel chains, and transfer bridges. The relay chain (Relaychain) is a blockchain created based on the substrate. As the center of the Polkadot network, it is responsible for the verification of information interaction, protection and coordination of parallel chains, and maintenance of the security of the entire network; Enter the relay chain to run and interact with the relay chain, and is responsible for handling various "trivial things". Different parachains can focus on different businesses and serve different needs. Parachain Slots are the interface between the relay chain and the parachain. In order to share the security of the Polkadot network and conduct business interaction with other parallel chains, it must be realized through slots. Slots are divided into community beta slots and commercial slots. 20% of the slots are reserved for deployment and support by the Web3 Foundation, as a community beta parachain to promote the entire Polkadot ecosystem The remaining 80% of the slots will be used as commercial slots, which will be opened through auctions. Ouyi OKEx has opened the OKExChain network deposit and withdrawal of K assets: Official news, Ouyi OKEx has completed the upgrade of K assets, and will open the OKExChain network deposit and withdrawal of K assets at 16:00 on May 9, 2021. After the mainnet upgrade is completed, Ouyi OKEx will add LINK, SUSHI, UNI, ZKS, Auction, SFG, DAI, KINE to the OKExChain network deposit/withdrawal. [2021/5/9 21:40:53] Since the operation of parachains needs to consume certain network computing resources, in order to ensure network efficiency and security, the number of parachains is limited in the initial stage. Gavin Wood, the founder of Polkadot, said at the Polkadot China Tour event in July 2020 that the upper limit of the number of parachains will be about 100, which means that the upper limit of the number of slots running at the same time is also about 100. In order to ensure fair distribution, Polkadot has designed an auction method that allows project parties to obtain the right to use slots through bidding. The right to use means that the slot is only rented and not sold, and the project party needs to bid for the right to use by locking a certain amount of time and a certain amount of DOT. After the lease period ends, the locked DOT can be unlocked and returned. (Note: The DOT that has participated in the pledge mining cannot be used to participate in the auction lock at the same time.) Regarding the specific time of the slot auction, there is no fixed date announced yet. According to Gavin Wood, it will be at the beginning of this year. Judging from the current development progress, the Rococo parachain test network needs to run stably for at least a period of time before considering launching slot auctions. According to Gavin Wood's introduction on December 8 last year, after the Rococo V1 testnet is running stably, the parachain slot auction will be launched on Kusama, the Polkadot mainnet testnet, and the winning parachain will be launched on Kusama. Afterwards, this process will be copied to the Polkadot mainnet. So from the process point of view, the parachain slot auction is one step closer to us. (It should be noted that Polkadot needs to use DOT, and Kusama needs to use KSM to participate.) Ouyi OKEx launches Chia recharge transaction XCH removes 5000T computing power blind box: On May 3, Ouyi OKEx officially announced that it will soon launch Chia Network ( XCH), the platform will open XCH recharge at 1:30 on the 4th, and the XCH/USDT and XCH/BTC markets will open for trading at 2:00 on the 4th. It is reported that OKEx launched the XCH recharge transaction activity to give back to the community and users, During the event period from May 4th to May 11th, users who participate in XCH recharge and transactions, and who meet the event rules can participate in the lottery to win a 5000T computing power blind box and share a 100,000 USDT prize pool. According to public information, Chia is a public chain project founded by Bittorrent founder Bram Cohen. It adopts a new Nakamoto consensus algorithm following Bitcoin, and replaces the very energy-intensive workload proof algorithm with space-time proof. [2021/5/3 21:20:47] 2. How to bid for slots and how to participate? Polkadot's slot auction method is relatively new and relatively fair. In order to reduce auction sniping, Polkadot parachain slots will use "candle auctions", and some improvements have been made on traditional candle auctions, and a retroactive closing mechanism has been used. "Candle auction" originated from the sale of ships in the 16th century, and was named from the "one-inch candle" that determined the opening period of the auction. When the candle flame goes out, the auction ends abruptly, and the bidder at that moment wins. When the candle auction is applied on the network, a random number is needed to determine the termination time. The parachain slot auction is a slight improvement on the ordinary candle auction. It has a known opening stage. At the end, a past block is randomly calculated. This past block is the time when the real auction ends. But the retroactive block is only carried out after the whole process is completed, so no one knows when the auction will end. Ouyi OKEx popular currency broadcast: BTG bucked the trend and rose by 36.05% within the day: According to Ouyi OKEx platform data, today’s market fell collectively, BTC fell by more than 12% within the day, and is now stable above 47,000 USDT; according to Ouyi OKEx market It shows that in the Ouyi OKEx intraday price increase list, the top three currencies are: BTG, LET, TUSD; the most resilient Polkadot ecology is DORA; the most resilient NFT ecology is GHST; as of 16:00 on April 23 The popular currency market is as follows: [2021/4/23 20:51:51] In summary, the way of candle auction means that everyone can know the status of the auction, but not when the auction will end, which helps to ensure Bidders prefer to bid early. There are two stages in the Polkadot parachain slot auction process: security period and random period. DOT can be freely pledged in both stages, and the auction will stop suddenly at an unpredictable time point in the random period, and the bids before this time point will be won by the highest bidder. Therefore, bidders need to bid as early as possible and pledge as many chips as possible before the second stage. The auction of parachain slots takes place every six months, and only one slot is released each time. The lease period of the slot is based on 6 months, which is divided into 6 months, 12 months, 18 months, and 24 months. Only the items participating in the auction can bid freely, and bid for a single or adjacent multiple lease periods , The highest price gets. The winning bidder needs to lock (stake) its DOT within a certain period of time, and the deposit will be refunded at the end of the parachain lease period. If the project party has insufficient funds, it can also apply for funding from the Web3 Foundation through PLO (Parachain Lease Offerings, Gavin called it crowdloan, crowd loan) to become a parachain. For example, through a series of incentives to attract investors to lock DOT to themselves, in turn, investors can also lock their own DOT in the auction module to support their favorite projects. If it fails to be auctioned to become a parachain, it can also be connected to the relay chain through a parallel thread. TokenInsight: The launch of the unified account may increase the trading volume of Ouyi OKEx by 56%: Recently, TokenInsight released the "Ouyi OKEx Unified Trading Account Research Report", saying that if the Ouyi OKEx unified trading account is officially launched, a more efficient margin trading mechanism will Break through the funding barriers between different product accounts. Since all digital assets of users can be used as margin, the scale of superimposed margin is calculated according to the overall value of the account, and the efficiency of capital utilization will be released. Based on the mechanism, the report makes relevant assumptions about the improvement of capital efficiency, and conducts a sensitivity analysis on the impact of the unified account on the platform's trading volume. According to the analysis results, under optimistic assumptions, the trading volume of the OKEx platform is expected to increase by 56%. [2021/3/6 18:20:54] This gives ordinary investors the opportunity to participate. If you are optimistic about a certain project, or which project you support, you can lock your DOT to help them bid. It should be noted that these DOTs are locked on the Polkadot relay chain, rather than directly given to the project party, and will be returned in full later. If the project you support succeeds in the auction, these DOTs will be returned after a lock-up period (maybe half a year to two years), and if the auction fails, they will be returned shortly after the auction ends. 3. The significance of parachain slot auctions So, why do people pay so much attention to slot auctions? Project parties are actively preparing for them. What does parachain slot auction mean to Polkadot, project parties, and investors? 1) For Polkadot As a representative of cross-chain projects, Polkadot is known as a blockchain project that can rival Ethereum. The parachain slot auction is an important milestone in Polkadot's roadmap, and it is also Polkadot's "highlight" this year, which means that its cross-chain vision will begin to land. Gavin Wood once said that one of the biggest goals of Polkadot in the future is to establish chain bridges with other blockchains. The current blockchain world is more like isolated data islands. If Polkadot can bridge mainstream blockchains such as Ethereum and Bitcoin through a transfer bridge, then in the future, data and asset exchanges between different blockchains will be realized. Communication and Interoperability. This will be of great significance to the Polkadot ecology and even the entire blockchain ecology. At the same time, for the Polkadot token DOT, the slot auction can enrich the usage scenarios of DOT. Since the auction of parachain slots and investors' support for favorite projects require pledge of DOT, it will affect the total locking rate and locking structure of the DOT network. When the parallel chain slot auction starts, a large number of DOTs are required to participate in the auction, and some pledged DOTs will be unlocked. With the release of more parachains, it is expected that the total DOT lock rate (node pledge + auction lock) of the entire network will rise. From this perspective, the increase in the total lock-up rate is expected to have a certain positive impact on DOT’s secondary market performance (the same is true for KSM), but the specific currency price needs to be judged in light of the current market environment. 2) If the project party successfully acquires a slot to become a Polkadot parallel chain, it will be able to share the consensus and security of the Polkadot network, and can realize business sharing and interaction while realizing different business lines, which is of great significance to the project party. big advantage. Bidding for the first batch of slots will bring the project a certain first-mover advantage, which can advance the planned development work as soon as possible, which is conducive to its later ecological construction. At the same time, it is also a high-profile publicity, which will help the project to build momentum. Parallel thread development will take some time. Before the parathread lands, many projects that intend to build in the Polkadot ecosystem will first try slot auctions. (Some lightweight projects that do not need to process transactions in every block are more suitable to choose pay-as-you-go parallel threads, which are more cost-effective.) According to PolkaProject, at present, there are 333 Polkadot ecological projects, based on Substrate There are 106 built. The parachain slot auction has not yet started, and many well-known and representative projects are ready to go, publicly declaring that they will participate in the parachain slot auction, such as Acala, Phala, ChainX, Darwinia, Bifrost, Stafi, Litentry, etc. . 3) For investors, the PLO scheme designed for parachain slot auctions gives market investors a way and opportunity to participate in the Polkadot ecosystem. Investors choose supported projects to pledge DOT in the bidding module to help projects participate in the auction. At the same time, you can get some token rewards or other incentives from the project, which may be more imaginative than the NPoS pledge income. At present, exchanges, investment institutions, and investors in the secondary market are all paying close attention to the development process of Polkadot, supporting and optimistic about its ecological development, and seeing it as an opportunity worthy of attention. Many investment institutions that have deployed the Polkadot ecology have expressed their intention to participate in the auction, which will help the projects that have already invested in the auction slot, and can indirectly obtain greater benefits. And various mainstream trading platforms also regard Polkadot as one of the key layouts, and have established Polkadot ecological funds one after another, and provide investors with convenient channels to participate in the Polkadot ecology. On December 30, OKEx announced that in order to support the Polkadot community and ecological co-construction, it officially launched DOT pledge mining service. The number of participants is 1DOT, and the expected annualized return is 12.8%.


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