Last week, the very first auction started for one of the so-called parachains of the Kusama (KSM) network, the little brother of Polkadot (DOT). Today the winner of the auction was announced: Kurara, a decentralized finance (DeFi) project.
The Polkadot and Kusama blockchains are split into so-called parachains. With this, the networks tackle the congestion problem of Ethereum (ETH) by allowing transactions to take place simultaneously, or in parallel.
Other blockchain projects can be linked to Polkadot and Kusama through these parachains, and last week saw the first-ever auction for a parachain opening on Kusama. Kusama is primarily a kind of test environment for Polkadot where changes can be implemented faster.
The winner of this first auction is Kurara, who is the little brother of Acala. Acala bills itself as the “DeFi hub” for Polkadot. As many as 15,000 KSM owners had secured more than 500,000 KSM tokens, worth around $100 million, to allow Kurara to win.
Kurara now has 4 years to further develop his project on one of the parachains. Kurara just posted a roadmap of the project on Twitter showing that the next step is the launch. However, the team does not give an exact date, but says “as soon as possible.”
The next auction will start immediately and will also last seven days. The proposal to start the second auction was approved almost immediately after the first ended.
However, Kusama’s price has not had such a good week. KSM plunged further today and is now down 30% from yesterday and 60% from a week ago. Polkadot (DOT) is now 22% down today and 48% compared to last week.