Composable’s Parachain Auction Launchpad: Opening Our Parachain Vault Strategy to Other Protocols, Beginning with Mangata Finance
In line with Composable’s mission to make the DeFi space better for all involved, our company has chosen to make our Parachain Vault Strategy available to other protocols seeking parachains through our Parachain Auction Launchpad. The projects we partner with as a part of this launchpad will be able to utilize our vault strategies for earning their own DOT and KSM to stake in a parachain auction for Polkadot or Kusama. The intention is that we become a core addition to the parachain procurement process for projects in the space, not only assisting projects secure a parachain, but also enabling Composable to engage with more projects in the Polkadot space.
Mangata, a decentralized exchange protocol for bridging Ethereum liquidity into Polkadot, will be the first project using our Parachain Auction Launchpad. We will also seek to onboard additional participants in this offering, and would like to involve the community in the strategies we use via a community forum.
A Recap of the Parachain Vault Strategy:
In response to the limitations in previous methods for parachain procurement, Composable Finance has architected its Parachain Vault Strategy. Unlike typical methods of parachain procurement, our strategy has a few key benefits:
- Allowing users to deposit ERC-20 tokens (instead of just KSM or DOT)
- Providing users with a significant yield on their token stakings (instead of experiencing an opportunity cost)
- Through this improved incentivization, improving chances for protocols to earn DOT/KSM (instead of hoping users will participate despite the lack of rewards)
Recently, Composable gathered over $50 million (and growing) in its vault. This demonstrates the ability of this system to generate funds, and indicated the significant potential for Composable’s vaults to be leveraged by other parachain-seeking projects.
Our Offering for Other Protocols:
To enable other projects to benefit from the Parachain Vault Strategy we have devised, Composable is offering the methodology for use by other protocols. Projects seeking out Polkadot or Kusama parachains will be able to tap into our vault strategy, earning DOT/KSM to put towards obtaining their own parachains in auction.
In exchange for providing this service, Composable will charge a 0.5% fee on money raised via our vault strategy, that will then be paid by the projects using it in their native tokens. This will be airdropped to Composable Token holders. 2% of these collected funds will be donated to the Polkadot Treasury.
Composable’s Forum For Yield Farming Strategies
Further reflective of Composable’s commitment to community, our forum invites people to propose and discuss yield farming strategies for our Launchpad offering. We encourage robust discussion and thought development in an effort to explore all possibilities and best practices.
This forum will be available at https://forum.composable.finance/
We want to incentivize community developers to create effective yield farming strategies. Therefore, community members who have their strategy selected and implemented into our Launchpad offering will be rewarded for their contribution by receiving a portion of performance fees on their strategy.
Mangata’s Use of Our Launchpad:
Mangata Finance will be the first platform participating in our Parachain Auction Launchpad. Mangata is an automated market baker (AMM) based decentralized exchange (DEX), which is similar to Uniswap and other prominent crypto exchanges. This parachain project is designed specifically for Polkadot-based assets. Mangata’s primary mission is to deliver fair rules to traders, including quick trade resolution, no gas economy, and frontrunning protections. As a result, the platform will have no miner extractable value and be the first choice for cross-chain trade in crypto.
Through our launchpad, Mangata will be able to leverage our Parachain Vault Strategy to earn DOT and KSM through our uniquely rewarding methodologies. Composable believes that Mangata will thus be optimally positioned to procure the parachain they need to implement their important protocol.
As stated by Peter Kris, Co-Founder of Mangata, “I’m very excited to be working with Composable, because it’s a first-of-its-kind cross-chain solution between Ethereum and Polkadot. People can safely provide liquidity into market-tested DeFi protocols and at the same time get a taste of parachain crowdloans. The most unique piece is that the Composable strategy is a sort of perpetual crowdloan, that can span across months or years, and allow parachains to pay for the slot sustainably over the long-term. Mangata is aiming to bridge Ethereum and Polkadot, so we’re excited to partner with every true cross-chain solution.”
Composable Finance is eager to be helping Mangata and other protocols along their paths to parachain procurement, an essential step in the development of these protocols. We are particularly pleased to be supporting a project focused on an issue in DeFi that we find particularly concerning, which is the frontrunning of transactions.
Composable CEO, Cosmin Grigore, says “Projects are not only about the technology they bring to people, but also about the community and network that gets created around them. We have launched a new and creative way to participate in parachain auctions. However, instead of just using it for our own purposes, I believe sharing it will bring a greater benefit to the ecosystem. We’re in for long lasting relationships with our partners, and that’s why we chose Mangata as our first project that will leverage the Parachain Vault Strategy launchpad solution. I hope this helps them to achieve their project goals, since a DEX protected against frontrunners and without MEV will be highly appreciated by anyone in the industry.”
More details about Mangata’s vault design and availability will be released at a later date, as well as the APY and how many tokens of the Mangata protocol will be allocated to this strategy. We will also be announcing new partnerships supporting other projects’ parachain procurement.
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