The Polkadex parachain auction cap is now down to only 1 million DOT. For each DOT you contribute, you receive at least a guaranteed 2 PDEX. We tell you all about the details of this auction.
What Is a Polkadot Parachain?
Parachains are Layer 1 blockchains that are built on top of . As a result, they give access to the Polkadot ecosystem. Each parachain specializes in a certain area. For instance, Polkadex specializes in trading. The advantage is interoperability. The complete Polkadot ecosystem is now open for business. All Polkadot platforms and projects become interconnected.
Furthermore, parachains are scalable and have low fees. Most importantly, all parachains enjoy now Polkadot’s network security. However, projects need to lease parachains. Polkadex will lease a parachain for 96 weeks. In case Polkadex wins the parachain, your deposited DOTs get locked.
The benefit for Polkadex as a parachain is a reduced transaction cost. Tokens and liquidity can move at a fraction of costs between chains. Here is our introduction article to Polkadex.
??The Polkadex Crowdloan is baaack??
?? Polkadexers assemble! Polkadex needs your help! ??
Loan your DOT to the Polkadex Crowdloan & get:
?? 2+ PDEX per DOT
?? Utility-based NFTs for top 1k contributors
?? All the details + guide on how to contribute??https://t.co/5noCFLixB7
— Polkadex (@polkadex) April 5, 2022
The Polkadex Crowdloan Details for the Polkadot Parachain
Once Polkadex secures a parachain, you not only get 2 PDEX for each DOT. In addition, the top 1000 contributors receive an exclusive . This NFT also has some extra benefits. For example, up to a 20-50% discount on the trading fees for the Polkadex Orderbook.
The launch date was April 5th, 2022 with a lease period of 8-15. The crowdloan ends June 23rd. Some partners include well-known names. For example, BiFrost, KuCoin, Gate.io, and Subwallet.
Let’s take a look at the locking period. Your deposited DOT needs to be locked for 96 weeks, or almost two years. Not everybody is keen to do this. However, you can lock them through three partners and receive liquid DOT (xDOT) in return. They represent your deposited DOT. So, during the locking period, you can use the liquid DOT. They are tradable, and you can also use them in crypto markets. That is, as soon as the auction finishes. You can also redeem them again for DOT 1:1 once the locking period ends. ParallelEquilibrium are the partners who offer this.
Here is a breakdown of their rewards.
- Parallel Finance offers 4 PARA tokens per DOT and 1 cDOT per every DOT.
- Equilibrium offers 10 EQ tokens per DOT and 1 xDOT per every DOT.
- t offers 0.04 BNC per DOT and 1 vsDOT per every DOT.
Take Part in the Crowdloan
Polkadex has a special Crowdloan page on its website. It shows many options on how to contribute. You can lend your DOT through exchanges, partners, or wallets. On the other hand, you can also deposit directly on the Polkadot interface. The minimum deposit is 5 DOT, this is however also the recommendation for all other options.
Contribute through launch partners
- Install the Polkadot wallet and make a Polkadot account
- Send DOT to your account.
- Visit the Crowdloan page
- On the bottom of the page is a calculator. Here you can see how much PDEX you receive.
- Select your preferred option. The links will bring you to the partner pages.
Contribute directly to Polkadot through their interface
- Navigate to Network > Parachains > Crowdloan
- Look for Polkadex and click ‘contribute’
- Insert how much you want to deposit
- Click ‘submit’ and sign the transaction.
Source: Polkadex crowdsource page
Conclusion
Polkadex is looking to win a parachain slot. By participating, you receive great rewards in return. A guaranteed minimum of 2 PDEX per DOT. Furthermore, partners offer some more interesting rewards. If you would like to participate, use these easy-to-follow instructions how to do so.
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