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All the funds raised will help to bid for the Kusama parachain slot auction starting next week. Multiple projects have contributed to the crowd loans with the KSM token lender set to receive different rewards.
In a recent development, Kusama’s DeFi hub Karura has raised more than $100 million through KSM Token sales. On Thursday, June 10, Karura announced that the community contributed more than 200,000 KSM tokens in the first-ever parachain auction on the Kusama network.
— Karura – DeFi Hub of Kusama (@KaruraNetwork) June 10, 2021
Kusama’s DeFi Hub
All the funds raised will help to bid the upcoming parachain auction for Kusama. Karura is wanting to run a parachain offering a full suite of DeFi services on Kusama. This includes a cross-chain automated market maker along with a stablecoin collateralized by multiple cross-chain assets.
Also, Karura has been founded by a Polkadot DeFi hub called Acala Network. Karura is basically a scalable, EVM-compatible network optimized for DeFi. As said, Karura hosts a suite of DeFi applications on its platform. Bette Chen, the project’s co-founder and COO said:
“We are blown away by the community support for Karura’s launch, as we bring DeFi to the Kusama community. It’s so exciting to see the community embrace this new, ethical, effective model for bootstrapping blockchain projects. We are making history together.”
Kusama’s Parachain Slot Auctions
The design for Kusama and Polkadot is such that it can 100 application-specific parachains into a central Relay Chain. However, there’s a limitation on the total number of parachains. Thus, projects planning to launch on Kusama have to win a slot via an auction.
The Kusama parachain slot auctions will start next week on June 15. This is a month-long auction and will continue up to July 13, in batches. Recently last week, Kusama also upgraded its parachain from Shell to Statemine.
To raise the funds, different projects have organized crowd loans in exchange for the native parachain tokens. Ruitao Su, co-founder and CEO of Karura and Acala thanked the community for this massive support. Su said:
“This level of support for our launch of Karura on Kusama, and later Acala on Polkadot, is proof of the positive demand for interoperable, decentralized financial products. We are grateful for such incredible support, and are excited to introduce our DeFi products to the world.”
As per the terms of the crowd loan, contributors lending one KSM token will get 12 KAR tokens in exchange. after the launch of the parachain, all the loaned KSM tokens will be blocked for the next 48 weeks. With all these developments the KSM price has shot 40% in the last two days. The KSM token price surge all the way from $365 to $525.