Parachain Slot Auctions are among the most widely- discussed and anticipated events in the blockchain space. Providing the winning projects with access to innovative multi-chain infrastructure, they also offer an opportunity for regular audiences to be involved in the vibrant Polkadot ecosystem.
Through crowdloan campaigns, anyone can contribute KSM and DOT to support the bids of their favourite projects, and receive their tokens as a reward.
However, these rewards have their limitations. Once a winning project secures a parachain slot, crowdloan participants find their tokens locked up for up to two years – with no other ways to leverage their funds.
To tackle this issue, Ankr introduces Parachain Bonds – an innovative instrument that unlocks the liquidity of bonded DOT, collects rewards from winning Parachain slot auctions, and distributes rewards from the winning project’s tokens to Parachain Bond holders.
Rewards from winning slot auctions are expected to become higher than Polkadot staking rewards, which makes Parachain Bonds a Polkadot High Yield bond.
By lending and trading bonds that represent your stake in the auction, users will be able to make passive income on their investment without waiting for the parachain slot lease to expire.
Find out more about Parachain Bonds