Polkadot slot auction coming next week! Binance and OKEx launch collaborative activities, offering additional rewards for early staking.

The Polkadot slot auction is set to begin on 11/11, with various parachain teams gradually announcing DOT staking rewards to attract more DOT holders to participate in the bidding. Binance also announced its collaboration with some parachain teams yesterday to launch Polkadot slot auction activities, allowing users to participate in advance and earn additional profits.

Polkadot Slot Auction

If you want to participate in Polkadot's cross-chain ecosystem, the best way is to obtain a lease for a slot. Slots act as the interface between Polkadot's parallel chains and relay chains, allowing the winning team of the slot auction to enjoy the convenience and security of the Polkadot network and interact with other parallel chains.

The only way to win the auction is to have more DOT than others. Polkadot's crowdloan mechanism enables parallel chain teams to provide incentives to attract DOT holders to lend tokens to the protocol team for participation in the auction.

Binance DOT Slot Auction Event

To participate in the crowdloan through regular channels, you need to have a certain understanding of the Polkadot wallet and its applications. However, Binance's event allows users to participate without transferring their DOT out of the centralized exchange, eliminating the hassle and risk of fund transfers. Additionally, through cooperation with auction teams, a pre-auction activity is launched to allow users to pledge early and receive additional rewards.

Warm-up Period

The warm-up period starts tonight at 9 PM and lasts for 7 days. Users can see all the protocols Binance is collaborating with on the activity page. After selecting the protocol to pledge, users can click the vote button on the right to stake DOT. The "Warm-up Bonus Rewards" column displays the incentives provided by each team during the warm-up period.

Earnings during the warm-up period are calculated hourly and distributed based on the proportion of DOT pledged by the user and the total DOT pledged for that protocol.

Auction Period

After the warm-up period, the 35-day auction period begins. The DOT initially pledged by users will be used for slot bidding. If the selected protocol wins the auction, the DOT will be locked up for the lease period, up to 96 weeks or about two years. The "Total Lease Lock-up Rewards" column shows the rewards provided by the protocol team during the lease period to compensate for the loss of liquidity from user-staked DOT.

If the selected protocol fails to win the auction, the pledged DOT will be returned on 12/18. Some protocols offer auction period subsidies, so even if the supported protocol fails to win the auction, users can still receive some rewards.

BDOT Exchange Function

To address liquidity issues arising from staking DOT, Binance has introduced a token exchange program similar to the ETH 2.0 staking activity. Within 45 days after the auction period ends, Binance will enable the "BDOT Exchange" function. Users can exchange their staked DOT for BDOT at a 1:1 ratio and sell it on the market for liquidity.

OKEx Early Bird Auction Event

Similar to Binance, OKEx has collaborated with protocol teams to launch the "OKEx Early Bird Auction Event." Starting from 7 PM on 12/3, users can stake DOT tokens with their preferred team and receive dual rewards from OKEx and the protocol team. However, OKEx offers fewer choices, with only three protocols available for staking.

How to Understand the Protocols for Auction Participation?

What are all these protocols doing, how much reward they offer, and for how long is the lease period? A convenient website, Parachains.info, provides all the necessary information.

Upon entering the page, click on Polkadot -> Auction in sequence to view the lease duration, reward token ratio, and main business items of the participating auction protocols. Clicking further provides more detailed descriptions.

To gain a clearer understanding of the implementation details of the crowdloan rewards for each protocol, you can find the team's crowdloan announcements in the News section.

Note: The above information does not constitute financial advice. Be sure to do your own research before participating in staking! Do your own research!