The first batch of parallel chain slot lease periods on Kusama concluded in May 2022. With five parallel chains funded via Crowdloans, these tokens will soon be returned to their original contributors. Why does this matter?
Key Takeaways:
- 110 million KSM (10% of total supply) was locked in Kusama's inaugural Crowdloans.
- Unlocked tokens now enable diverse DeFi applications on Moonriver.
- xcKSM (KSM's cross-chain representation) powers Moonriver's ecosystem.
The Crowdloan Mechanism Explained
Crowdloans are Polkadot/Kusama's unique incentive system for funding parachain slots. Token holders contribute to projects competing in auctions. Winning projects lock tokens during the lease period, releasing them afterward. Moonriver's Crowdloan participants will receive unlocked KSM in late May 2022.
Moonriver: Kusama's Leading DeFi Hub
Boasting the highest TVL and user activity on Kusama, Moonriver offers extensive KSM utility through:
- 29 live parachains with XCM-enabled KSM integration
- Native support for xcKSM (XC-20 standard assets)
- 40+ protocols utilizing unlocked KSM
👉 Discover Moonriver's DeFi ecosystem
xcKSM: Cross-Chain KSM on Moonriver
Convert KSM to xcKSM via these steps:
- Navigate to Moonriver Apps Portal
- Connect MetaMask and Polkadot.js wallet
- Select "Deposit" under Cross Chain Assets
- Transfer KSM from Kusama relay chain
Reverse the process to withdraw back to Kusama.
Top xcKSM Use Cases
1. Decentralized Exchanges
2. Liquid Staking
- Lido: Industry-leading liquid staking for xcKSM
3. Lending Protocols
- Moonwell: Cross-chain borrowing/lending with xcKSM support
FAQ Section
Q: When exactly will KSM unlock from Crowdloans?
A: Expected between May 15-31, 2022, depending on specific parachain lease end dates.
Q: Is xcKSM different from regular KSM?
A: Functionally identical in value, xcKSM simply enables ERC-20-like functionality on Moonriver.
Q: What's the safest way to use unlocked KSM?
A: Always verify smart contracts through multiple sources before interacting.
Disclaimer: This content is informational only and not investment advice. Perform independent research before engaging with any protocols.
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