Today we are going to talk about the Binance exchange product called DOT Auction Slot . This is a fairly progressive and safe option for passive earnings in cryptocurrencies. Also here you will not lose your invested assets, and if you make a good choice, you will earn good money.
Of course, no one can give an absolute guarantee, working with cryptocurrencies is always associated with risks, but the profit in the event of a successful outcome of the case will pleasantly surprise you. And now we will tell you everything in order.
What is a DOT auction?
A DOT slots auction is an auction that takes place in the form of a candlestick auction. Buyers compete for the right to play one of the parachain slots in the Polkadot ecosystem for a certain period of time. Slot machines can be rented for a period of three months to two years, after which the auction is held again.
Why does a crypto project need a parachain slot
Polkadot is a "protocol of protocol" that, if the project developers win the auction, will be able to develop their ecosystem without worrying about things like consensus algorithm, database creation, and other security aspects. In addition, they will be able to interact with other parachains under the protection of central network auditors.
At the same time, the canopy retains a fairly high degree of autonomy. And Polkadot trusted nodes do not control their current state, but only the direction of change, that is, the transitions of these states. The logic and mechanism for implementing updates are determined by the developer team that hires parachain . And after you won the auction once, you no longer pay for using the slot or transactions with the primary cryptocurrency DOT. Economically, parachain is completely self-sufficient, unaffected by other projects of the first, which operates in Polkadot.
In order to become a winner in the gambling auction, the project must offer more participation in DOT tokens than its competitors. And without attracting money from ordinary users, it is also very difficult to do. The Binance exchange incentivizes potential bidders by giving out bonuses at the start. The candle auction is a variant of the English auction. Bidding is carried out publicly and the price can be adjusted in a direction unfavorable to the participants. Now we will tell you more about the DOT slots auction scheme.
Polkadot (DOT) Parachute Slot Auction Rules
As we have already said, transactions are carried out in a candlestick auction format. Once such positions were reached, Japanese candles were used to determine when to close trades. Therefore, attempts to place bets were stopped at the last minute, because it was almost impossible to determine the exact time of completion. And now, of course, no one uses candles, but the format itself has taken root and has become very popular. An alternative to the candle auction is the Scottish auction, which is very limited in time. But let's go back to the topic of our review and list the rules for conducting DOT slot auctions on Binance:
- Startups wishing to participate in the parachain auction send DOT cryptocurrencies to bet. The project with the highest bid will be the winner. The minimum rental period is three months, and it can be extended for up to two years. This canopy hole is then auctioned off again.
- The auction is divided into five rounds, each lasting approximately seven days. Only projects that were previously losing can participate in the next round. The winner receives his prize and leaves the auction.
- The user bets by voting for the project he likes. And in order for the vote to be taken into account, the bet must be confirmed periodically. Almost immediately, you get a bonus for early participation from the Binance exchange and Polkadot parachains, and during the trading period, it is possible to get an additional bonus (not all projects pay for this). And if the team you're betting on wins the auction, add tokens from this regularly distributed network for at least another three months (the DOT price will be frozen).
- You can view the bonus details in the DOT slot auction section of the Binance platform. All data are in public sources. Binance can amend the information without notifying the bidders in advance.
- If the Polkadot developers reschedule the next auction, keep the bids submitted. In this case, the auction end date and rental periods will also be rescheduled.
- Binance is not responsible if customer funds are lost in the auction due to force majeure. Suppose it so happened that a blockchain startup won an auction and received a parachain for rent, then filed for bankruptcy and, for some reason, decided to suspend the business.
Please note that winning the auction does not guarantee automatic addition of tokens to the exchange. If one or another development team makes a statement about a guaranteed listing or future collaboration, it will block your ability to enter the Binance marketplace . So don't pay attention to cheap ads. Although there are very promising projects among the participants in the auction of DOT slots.
Summary of available projects
As of 08/01/2022, all auctions have ended. The last successful auction was completed on 12/16/2021. The gambling lease expires on October 24, 2023. Of the six winners of the latest Polkadot slots auction, only two Parallel and Acala projects are listed on the Binance exchange.
Parallel Finance is a decentralized blockchain lending platform powered by Polkadot. You can lend money with interest, place a bet or borrow a certain amount by posting a deposit. Link to the official website of the project .
Acala is a Defi project compatible with the ethereum blockchain. It supports Acala Swap and Ausd decentralized stablecoin. Link to the official website of the project .
How to calculate return on investment
The reward for participating in Polkadot in the gambling auction is approximately $30,000,000. All this amount is distributed among users who placed a bet a week before the start of trading. The bonus amount (APY) is recalculated every hour, it depends on the size of your bet and the total amount of assets deposited. And at the beginning of the vote, the APY will not be displayed, but after an hour, the numbers will be available again.
You can vote multiple times, and the number of offers is unlimited. And when you place a DOT bet and the project wins, the exchange adds you the same amount of BDOT coins. It is a token asset designed to provide liquidity during the period of DOT participation. Owning a B DOT asset does not affect the bonus amount. You can sell it right away or wait until the end of the lease to transfer it back to the DOT. The exchange also gives all participants such an opportunity within a month and a half after the closing of the gambling auction. If you bet on the wrong participant and the project loses all gambling auction rounds, we will refund your money. If suddenly the bet is not successful due to system failure, return the bet, but you will not receive the previous participation bonus.
How to withdraw coins
Some of the candidates to participate in the auction are blockchain projects at an early stage of development. This means that you cannot be rewarded with your original tokens until you successfully apply for space, launch your chains, and fully integrate Binance into your ecosystem.
After that, you can withdraw these assets to your personal wallet. Participation in a gambling auction does not guarantee listing on Binance . And you may have to find another platform to implement the received bonus. The Dot cryptocurrency can only be withdrawn from the exchange after the participation has ended.
conclusion
Participating in Polkadot ’s parachute slot auction carries far less risk to investors than an ICO campaign, which has long been familiar to crypto industry veterans. It also does not transfer money to the developers of the project, but sends it to the bet and receives a bonus for participation. And, of course, it is impossible to predict how well everything will evolve. And some blockchain projects can go bankrupt completely, so don't forget to diversify the risks.
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