KR1, a blockchain and crypto-asset investment company, has now announced it has participated in the HydraDX (HDX) crowdloan and Polkadot (DOT) parachain auction. KR1 contributed a total of 350,000.00 DOT to the HydraDX crowdloan campaign, which successfully secured a parachain slot in the ongoing round of Polkadot parachain auctions.
HydraDX.io is a cross-chain liquidity protocol designed to enable frictionless liquidity for crypto assets across various chains. In contrast to most decentralized exchanges in production today, which rely on separate pools for separate assets, HydraDX’s solution enables deposits of ‘all’ assets into one shared liquidity pool, the ‘Omnipool’, unlocking unparalleled efficiencies.
The contributed DOT will be time-locked on the Polkadot blockchain for 96 weeks and will be returned to KR1 following the completion of the respective HydraDX parachain lease. Following the successful HydraDX parachain auction bid, KR1 is going to receive a to-be-determined amount of HydraDX tokens over a time period of 96 weeks in return for supporting the HydraDX crowdloan campaign.
This method of token distribution involves no direct investment of capital, instead, it is an indirect investment with the opportunity costs being the inaccessibility of the locked DOT funds as well as foregoing any staking yields on the contributed DOT for the time period.
In addition, KR1 will receive a total of 45,000,000 HDX tokens (and a yet-to-be-determined amount of Basilisk (BSX) tokens) in line with KR1’s previous backing of HydraDX’s seed funding round that was announced on December 22nd, 2020, and a much smaller, yet-to-be-determined amount of HDX tokens in line with the company’s contribution to Basilisk’s Kusama crowdloan campaign and parachain auction that was announced on September 22nd, 2021.
HDX is the native token of HydraDX. It will be used for governance, staking, and more.
“HydraDX winning a Polkadot parachain slot is the next big step for the project and a huge endorsement by the community of the protocol’s objective to bring all liquidity together in an ‘ocean of liquidity.’ We see HydraDX as the endgame of liquidity in a cross-chain world and we have a high conviction rate in the team’s ability to achieve this goal.”
– Keld van Schreven, Managing Director & Co-Founder of KR1