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Gate.io Will Support Polkadot & Kusama Parachain Slot Auctions

2021-01-13 09:46:52Read:35299

As part of our effort to support the Polkadot & Kusama eco, Gate.io will add support for Polkadot & Kusama Parachain Slot Auctions. Users will be able to participate in slot auctions and earn rewards at Gate.io’s HOLD&Earn with just a few clicks.

Before this move, we have already announced the effectively zero trading fee policy for upcoming Polkadot projects listing. Read more at: https://www.gate.io/en/article/18779
Also, we have DOT flexible staking product on Gate.io’s HODL&Earn, with an estimated reward of 9% APR(https://www.gate.io/hodl/287), and KSM staking product, with estimated reward of 10% APA( https://www.gate.io/hodl/289)

What are Polkadot Parachain Slots
The Polkadot Parachain Slot is what connects a parachain to the Polkadot relay chain. The Polkadot uses parachains to connect to other blockchain projects to achieve increased TPS. The Relay Chain is the central chain of Polkadot, it validates parachains and provides consensus and security to the network. To remain connected to the Relay Chain, parachains must win a parachain slot auction to secure a slot for a particular length of time.
To better understand their relationships, you can see the slot as a power strip, the parachains appliances and the relay chain the circuit. The appliance needs a power strip to connect to the circuit.

Why use Slots?
The Polkadot relay chain can not maintain a shared security among massive parachains due to limited resources. The slots are introduced as entry tickets for parachain to connect to Polkadot. The slots are in a finite number which start low at genesis and increase over time. To use a slot, one must win a parachain slot auction and deposit some DOT tokens for a fixed term.

How to participate in a slot auction?
Parachain slots are offered under an unpermissioned Candle-auction. Initially, the auction is held once every 2 weeks with 4 parachain slots to be offered. It is worth noting that the auction is not a permanent sale , it is a two year’s lease time split into 6-month lease periods. Bidders that can maximize the DOT deposits over the entire two-year period will win .

Example: Bidder A, Bidder B, Bidder C participate in an auction for one slot. A bids to deposit 65 DOT for the entire 4 periods; B bids to deposit 100 for the first two periods; C bids to deposit 40 Dots for the final two periods.
If A wins, B and C lose. A total of 260 DOT will be held on deposit for four periods.
If B and C win, A loses. A total of 280 DOT will be held on deposit for four periods

Based on the maximum deposits rule, B and C win and A loses.

Gate.io is an established exchange that holds integrity, transparency, and fairness to a very high standard. We charge zero listing fees and only choose quality and promising projects. Our exchange consists only of 100% real trading volume. Thanks to everyone who has joined us in our journey. We always intend to improve and innovate to reward our users for their continuous support.

Gate.io Team
January 13, 2021

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