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Divya Mathur
Aug 28, 2021
by Divya Mathur

Composable Finance Launches Crowdloan to Raise Funds for Kusama Parachain

Composable finance Kusama Parachain
Blockchain protocol Composable Finance has announced a crowdloan initiative to finance its bid for a Kusama parachain. The company has also unveiled a native token for the Picasso Network which will be deployed on the procured parachain. 

Composable Finance Announces Crowdloan for Kusama Parachain Bid

On August 25, Composable Finance said that it will participate in Kusama’s upcoming parachain auction to win a slot for its Picasso ecosystem.

“If we procure a parachain and deploy Picasso, we will be able to be one of the first ecosystems to deliver dApps like options protocols, lending protocols, and others,” the company explained in a recent blog post.

To prepare for this competitive process, Composable has kickstarted a crowdloan initiative that seeks to accumulate 100,000 KSM tokens for a successful bid. According to the company, the crowdloan period will last for 48 weeks, with 8 lease periods of 6 weeks each. 

For those not in the know, crowdloan is a special mechanism that allows KSM holders to support their favorite parachain projects. Contributors participating in parachain auctions can securely engage with the potential benefits of a project without giving up the custody of their token to a third party. 

In Composable’s case, crowdloan stakers can earn 20% of the PICA token’s supply -- the native currency of Picasso Network -- and added yield during the slot period. The company intends to use the KSM staked in the crowdloan to mint kUSD coins which will be swapped for Tether (USDT) and staked in yield farms. The earnings generated this way will be disbursed among the contributors through a base annual percentage yield (APY).

Auction Bidding to Begin on September 1st

In a recent statement, Composable Finance CEO Cosmin Grigore indicated that the company wanted to wait for a few weeks before entering the auction process. Nevertheless, they decided to push with the upcoming auction to begin onboarding projects that were interested in Composable’s ecosystem.

“We want to provide our parachain as soon as possible and start incubating all the projects that have shown interest in participating. We have already created a few primary tools on Picasso, including Apollo, our MEV-resistant oracle pallet, and Cubic, our vault infrastructure pallet. Now, we are happy to let others “paint” our Picasso parachain by creating interesting secondary or tertiary pallets that add higher-order functionality,” Grigore said in a prepared statement.

Composable will start bidding in Kusama’s auction from September 1st onwards and will continue with it in the four subsequent auctions.

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Composable Finance Launches Crowdloan to Raise Funds for Kusama Parachain
Divya Mathur
Divya is a postgraduate from Jawaharlal Nehru University specializing in International Relations and a professional writer with more than 5 years of experience writing for the web. She is an avid reader interested in the global financial system and the effects of decentralization. At Cryptoknowmics, she hopes to deliver clear and understandable content to inform readers about the latest events in the crypto sector.

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