Announcing Composable’s Parachain Auction Vaults
Composable Finance is excited to announce the launch of our parachain vault strategy.
Composable’s vault will launch on Tuesday 29th June at 10am CET, and at launch will accept three stablecoins: USDC, USDT, and DAI. The initial cap for total value locked (TVL) in the vaults will be $15 million collectively, which will be lifted after the following objectives are achieved:
- Smart contracts are determined to be stable
- All vulnerabilities of severity levels 0 or 1 (the most severe) are closed (if any)
These security vulnerabilities will be appraised as part of a bug bounty program, discussed in further detail below.
Security Measures & Bug Bounty
As always, security is paramount at Composable, so we’ve put the protocol to the test by leading experts; we’ve gone through a comprehensive audit process, with an audit completed by preeminent security auditing firm Trail of Bits. You can find a full audit report here.
We are also hosting a soon-to-be-announced bug bounty with Immunifi. 150,000 USDC will be set aside for bounty rewards on any identified smart contract vulnerabilities, and 0.05% of the Composable Token supply will be designated as potential rewards for any other identified vulnerabilities. This bug bounty program will give community members the opportunity to identify any shortcomings to our coding and be rewarded in the process, thus further ensuring the security of Composable’s vaults.
As a reward for early participation, we are providing 2% of the total Composable Token supply to early stakers in this vault. ⅓ of this 2% (around 0.667%) will be rewarded to participants contributing during the cap period. The other ⅔ of this 2% (approximately 1.333%) will be rewarded to stakers once this cap is lifted.
To ensure continued vault participation, we will have further incentives, which will be announced later.
These vaults allow users to help Composable procure a parachain in Polkadot or Kusama, without having to buy DOT or KSM, these protocols’ native tokens, and lock them up. In our novel system, users can deposit stablecoin into our vaults, which we will route through a unique yield farming strategy. 50% of the proceeds from the yield farming strategy will go back into the user’s pocket, and the rest will go to the parachain and increase the user’s stake.
Initially, users will be able to deposit USDC, USDT, and DAI in our vaults, but we are moving to allow many other strategies. We hope to subsequently expand capability to other token types in the future.
The top priority for all of these vaults is to allow users to participate in our parachain strategy in a way that provides them with maximal benefits. Overall, we want users to be a part of Composable’s parachain strategy with the assets that they currently possess, rather than asking them to invest in DOT/KSM that we stake, and that they do not benefit from. Instead, through our system, users are able gain exposure to DOT/KSM, gain yield from our farming strategies, and be involved in a more participatory system.
This is an original way to secure and maintain a parachain, all the while rewarding users for their support. In return for depositing stablecoins, users will receive:
- Exposure to Composable Tokens
- Exposure to Polkadot/Kusama parachain auction
- Exposure to DOT/KSM
- Yield on staking
- Yield on Composable Farming
- Minting Equal Cash off the receipt token from the vault
This exciting strategy simplifies the user experience and improves incentives and capital efficiency. For more information on the specifics of our vault strategy, check out our blog post here.
There’s a lot more to come from Composable in the following weeks, as we roll out layer 2 functionality and work to build a comprehensive Polkadot ecosystem. Composable is committed to cross chain, cross layer composability and interoperability — and these vaults are the first step towards that goal.
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