Disclaimer: Information as of Dec 3, 2021. For the most recent updates, dive into our comprehensive documentation here.
With our successful procurement of a Kusama parachain, Composable is now able to concentrate on making the vision of Picasso a reality. As this development happens, we are simultaneously preparing to obtain a slot at auction for our Polkadot parachain — the Composable parachain. As foundational events for our ecosystem are set to unfold, we want to share the following with our community:
- Vision for Composable’s Polkadot parachain
- Specifics on the Composable parachain crowdloan and vault strategy update
- Token rewards for contributors
- How the Composable parachain will operate and LAYR use cases
- How our two parachains will work together within the broader Composable ecosystem
How the Composable parachain is building the interoperable future of DeFi
Composable’s vision has always been to utilize a Polkadot parachain to help build our cross-chain and cross-layer ecosystem. As Kusama is Polkadot’s canary network, beginning with a Kusama parachain to build our ecosystem is a logical first step.
Mirroring the relationship between the Kusama and Polkadot ecosystems, Picasso will ultimately serve as an innovation hub where our DeFi primitives can launch and develop. Picasso will provide a space for open and honest creativity where developers can build the future of DeFi with full access to Composable’s completely interoperable ecosystem — including Mosaic, our bridge connecting all layers and chains.
After procuring a Polkadot parachain, the Composable parachain will serve as the orchestration and routing layer for our Composable cross-chain virtual machine (XCVM). We envision this chain to be different from Picasso as it will serve as the home for technical activities that require the higher security of Polkadot, such as handling institutional scale throughput via the Composable Routing Layer. In addition, the chain will focus on providing smart contract and Wasm capabilities to Polkadot.
Overall, our parachains are cornerstones of Composable’s interoperable ecosystem. They provide a space for innovation and a finality layer for the composable future of DeFi. As future projects develop, such as Centauri — our Picasso-IBC bridge — and the Composable Routing Layer — designed to select incentivized paths for asset swaps and transferals across all layers and chains — our Polkadot parachain will help to create boundless inter-ecosystem communication with lego-like building blocks for developers to leverage making for a true ecosystem-agnostic solution across DeFi.
Composable’s path to procuring a Polkadot Parachain
The first Polkadot parachain auctions kicked off on November 11th, with the first five winning slots being simultaneously onboarded on December 15. The next six slots will be released one every two weeks; these will be onboarded simultaneously in the spring.
Given these upcoming auctions — and our recent procurement of a Kusama parachain for Picasso — we will now begin our efforts to procure a Polkadot parachain. Since our Kusama parachain procurement strategy was successful, we will continue to leverage and enhance it as we move forward:
The Composable Polkadot Crowdloan
Our crowdloan strategy improves upon existing crowdloans by offering augmented flexibility and earning opportunities for users, such as the depositing of stablecoins and enhanced incentives for participants. For our Polkadot crowdloan, participation will be capped at 25 million DOT, an amount we believe positions us perfectly for successful parachain procurement.
We will be offering 14%* of LAYR supply to crowdloan contributors, with 25% vesting on TGE, and the remainder vesting over 1.5 years.
*An additional 2% of LAYR supply has been unlocked for hitting 4m DOT in the Composable Finance crowd loan
Additionally, we have planned more rewards for those who would contribute towards this round. See a breakdown of our early bird incentives:
- 5% bonus to those who staked in the first 24 hours
- 5% bonus to those who previously contributed KSM and stablecoins to the Picasso Crowdloan
- 10% bonus to stakers in the first three days of opening the crowdloan
- 20% bonus for those who refer a total of 1000 DOT using our referral codes
When live, this crowdloan will be available on our app. Users will be able to stake stablecoins or DOT, earn an APY on their stakings, and support the ever-growing Composable ecosystem. Be ready — our Polkadot crowdloan will be going live within a few days to bid in the second batch.
As stated in a previous article, we will also be issuing PICA rewards through a claim process to members who participated with stablecoins during our Picasso crowdloan. The claim process is scheduled to take place before Composable’s LAYR tokens are distributed, so that prior crowdloan participants will be recognized during the distribution of rewards of LAYR.
The Composable Vault Strategies Revamp
We are excited to leverage our remodeled vault strategy to provide users with yield, exposure to our parachain auction, and LAYR, as the first set of strategies spanning both the Ethereum and Polkadot ecosystems.
Now that our vault strategy has been remodeled to suit the needs of our overall ecosystem, it will be used as a liquidity launchpad for projects built on the Composable ecosystem via our experimental testing ground, Composable Labs, with STRM tokens already having previously been distributed to stakers. Our community can look forward to new token distribution opportunities to stakers from Composable Labs projects, which are in the pipeline.
Composable Parachain Token Distribution
Composable’s LAYR token will govern the Composable parachain. The total supply of 100,000,000 LAYR tokens will be distributed according to the following figure, with more information about each distribution channel below:
LAYR release schedule is envisioned as follows:
Seed investors: 20% (or 20,000,000 LAYR) of the total token supply will be distributed to seed investors as a reward for their essential early support and strategic backing of the ecosystem. 20% of these tokens will be unlocked at the token generation event (TGE), with linear vesting of the remaining tokens over the subsequent two years.
Team: 25% (or 25,000,000 LAYR) of the total token supply will be distributed to founders and the core Composable team as a reward as well as incentives for their continued actions in the best interest in the Composable ecosystem. The distribution of these tokens will have a six-month cliff with linear vesting of the remaining tokens over the subsequent two and a half years.
Emissions: 10% (or 10,000,000 LAYR) of the total token supply will be released from the protocol as rewards and incentives for a number of actions involved in the protocol. These are programmatic incentives to bootstrap network growth (block validators, decentralized application builders and token holders from other networks) on Composable as well as token liquidity (liquidity mining programs). *
Crowdloans: 16% (or 16,000,000 LAYR) of the total token supply will be allocated for the purposes of securing a parachain slot every two years. 12% is being utilized for the current batches of Polkadot auctions, with a 25% vesting on TGE, and the remainder vesting over two years.
Treasury: 24% (or 24,000,000 LAYR) of the total token supply will be allocated to the Composable Treasury. *
Polkadot vault strategy: 5% (or 5,000,000 LAYR) of the total token supply will be rewarded to participants in our Polkadot vault strategy. 50% of this (2,500,000 LAYR) will be released at TGE, with the remaining distributed over six months.
All terms related to token allocations are subject to change. Legal disclosures apply.
LAYR Token Use Cases
The Composable parachain as well as the overall Composable ecosystem will provide a multitude of use cases for LAYR tokens:
- Staking LAYR to get free/reduced-fee transactions or earn part of protocol fees
- LAYR staked by the oracle pallet on our Polkadot parachain
- For governance decisions on the pallets upgraded to LAYR and voting for additional network/bridge support
- Staking LAYR by relayers and collators
- Staking by Routing nodes
- Staking by Insurer nodes
The importance of Pallets in Composable’s Parachains
For both Kusama and Polkadot, Substrate pallets are at the core of our parachain development process. For those unfamiliar, pallets are modular and stackable building blocks that create a parachain’s runtime. Once integrated into a parachain, pallets can be leveraged by developers to help ease the creation of protocols and decentralized applications (dApps). With pallets being so important to our parachains, our previous pallet announcements of Apollo, Cubic, and Angular Finance are significant.
Synergy between Picasso and Composable Parachains
The lessons and skills we learned through creating Picasso will help to streamline our work and allow us to test, observe and choose the best pallets to integrate into our Polkadot parachain upon its launch. Our plan is to put a system in place which allows us to graduate the most promising projects from Picasso to the Composable parachain.
Our community will partake in this graduation process through governance by voting with our LAYR tokens. Overall, the synergy between these two chains will help our ecosystem grow efficiently as we build the face of DeFi’s future.
Having recently completed the major milestone of securing a Kusama parachain, Composable is thrilled to be seeking a Polkadot parachain. Our two parachains, Picasso and Composable, will work together synergistically within the Composable ecosystem to provide both a secure testing environment and a more advanced deployment space for the most impactful pallets, protocols and dApps.
We look forward to kicking off our efforts in the Polkadot parachain procurement process, and we are incredibly thankful for all of the support from our community. The future for Composable — and the DeFi space we are striving to unite — truly looks bright.
Learn more on how you can support Composable through our Ambassador Program
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