Karura Swap on Kusama lists first cross-chain parachain token Bifrost with 200,000 BNC reward

Karura Swap, an AMM-style (Automated Market Maker) -style exchange on Kusama, has partnered with Bifrost Finance to introduce the newest trading pair, BNC / kUSD. The pair kicked off Trusted Trading in bootstrap mode on Oct 19 at 8 p.m. and is slated to go live on Oct 21 at 8 p.m. Synthetic Team time.

follow notificationTo celebrate the launch event, Bifrost and the Acala Foundation are allocating 200,000 BNC and 25,000 KAR liquidity mining rewards. BNC / kUSD liquidity providers have two reward pools available for 3 months and an additional 70% “loyalty” bonus for Karura Swap users who keep their rewards in the pool until the end of the program.

What is Karura Swap?

Karura Swap is a decentralized exchange protocol in the AMM style that is implemented and implemented as updatable runtime modules on Kusama. With support for both native substrate tokens and ERC-20 tokens, Karura Swap positions itself as Kusama’s gateway and liquidity hub. The platform has amassed a total of nearly $ 86 million.

On the other hand, Bifrost strives to be an infrastructure that provides liquidity for staked assets. The team introduced a derivative called vToken, which provides staking and liquidity for parachain slots on Polkadot. vToken can be used for DeFi in a number of ways within the Polkadot ecosystem, such as: B. as loan security or for minting stablecoins.

Bifrost is the underlying protocol of Polkadot Ecological DeFi with the goal of becoming the infrastructure for staking assets to provide liquidity. Bifrost has introduced vToken derivatives for staking and Polkadot Parachain Slot (Crowdloan). The project has raised $ 2.15 million in grants from NGC, SNZ, DFG, CMS, and others, as well as the Web3 Foundation Grant.

Once launched, BNC or kUSD holders can provide unilateral or bilateral liquidity over a 48 hour period thanks to Karura Swap’s new bootstrap mechanism.

Bootstrap is essentially a “warm-up” period for liquidity providers for each pair in the karura swap.

What is Bootstrap

With “Bootstrap” Karura enables trustworthy trading at a market price by temporarily deactivating trading for a certain period of time until predefined liquidity requirements are met. As soon as the introductory phase is completed, the price will be published and trading on the Karura Swap will be activated.

The BNC / kUSD pair started in bootstrap mode on October 19 at 8 p.m. (UTC) and lasted an estimated 48 hours (with an end time at block # 795800). Trading will then be activated as long as the pool meets the specified liquidity criteria of 20,000 BNC or 200,000 KUSD.

Bifrost and the Acala Foundation have created two reward pools for liquidity providers who offer the pool BNC, kUSD or both assets in bootstrap mode or with activated trading.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Minh Anh

According to Cryptoslate

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page