Karura is a "sister chain" of Acala Network, Polkadot decentralized financial hub. Now it introduces an innovative approach to the DeFi token offering, Parachain Lease Offering or PLO.
Kusama (KSM) meets DeFi
Named after a fire-breathing bird from Japanese mythology, Karura is a full-stake hub for decentralized financial applications (DeFis) based on Kusama blockchain. It will include stablecoin (kUSD), liquidity instruments for KSM (L-KSM), DEX environment, lending/borrowing tools and more.
Karura onboards parachain for Kusama, i.e., it integrates separate blockchains into an interoperability framework. More than 100 parachain slots will be available in the future. In order to book a slot on this blockchain, a company is required to participate in an auction using locked Kusama (KSM) tokens.
The inaugural Parachain Lease Offering (PLO) will be organized for Karura and its native KAR tokens themselves.
To accomplish this milestone, the team is seeking for support from KSM holders. Should they lock enough KSM, the release of the pioneering parachain on Kusama will be approved.
PLO: a new model for decentralized economics
To reward those Kusama (KSM) tokenholders who bond their assets, Karura distributes KAR tokens within the framework of its Paradrop event. If Karura onboarding takes place, KAR tokens will be sent to supporters in accordance with a vesting schedule.
KSM will remain locked on Kusama, being inaccessible to the Kusama and Karura teams. When the Parachain leasing period is over, all KSM tokens will return to their initial owners. Meanwhile, released KAR tokens will not be taken away.
PLO implies flexible bonding periods for KSM, i.e., 6,12, or 24 months. Due to the decentralized nature of Paradrop, the accurate amount of KAR allocated for rewards is unpredictable.
The Karura team adds that the project will receive its dedicated website very soon alongside with an airdrop schedule and details.