5 reasons why you should stake KSM through Ankr StakeFi in the Kusama Slot Auctions

This post was originally published on ankr

Franciska Kovacs

Sep 13 · 3 min read

Kusama parachain auctions are back! Auctions #6–10 will take place during the month of September, giving more projects a chance to win a parachain slot on Kusama and benefit from the network’s unprecedented security and speed.

Conditions remain the same: teams need to bid the highest number of KSM in a candle auction. And the numbers are quite impressive. To win the 5th slot, Khala Network bid 132,280 KSM — over $50M! Not everyone has fifty million dollars worth of KSM in their treasury, so parachains turn to the crypto community. Supporters who help the projects raise the necessary sum, receive generous rewards in their native tokens.

It’s hard to choose from the list of exciting candidates — and even when you know who is your favorite, contributing KSM to support them can present multiple challenges. The lock-up period, multiple websites and complex rules make it difficult for you to manage your rewards if the project wins.

Keeping this in mind, we launched Parachain Bonds — an innovative DeFi instrument that is meant to tackle this issue and make parachain slot auctions as easy and profitable for users as possible. And here’s 5 reasons why you should stake KSM in the Kusama auctions with us:

Reason 1. Whether you want to support one project or multiple, you can contribute KSM to all of them on Ankr StakeFi. If you contributed to a project that won a parachain slot auction, you will be able to claim a Parachain Bond and claim rewards by holding the Parachain bond. As such, you will be able to conveniently manage your Parachain bond reward claims from a single interface instead of going through different websites from every winning project to claim rewards.


Reason 2. Holding a Parachain Bond means having liquidity bonded KSM as well as promised future rewards by the winning project. Your KSM is therefore no longer illiquid and you should be expected to be able to resell it through auction marketplaces like Bounce Finance. A very important fact is that this liquidity is provided by the market, and not by Ankr or any other entity, meaning no single counterparty risk for providing liquidity.

Ultimately, trading Parachain Bonds is similar to trading NFTs. The market defines what is the fair price ultimately. The major difference is that Parachain Bonds do have a fundamental value that can be assessed in a financial point of view with hard facts (e.g. x KSM contributed, maturing in y days, earning z rewards until maturity, etc.).

Reason 3. Parachain Bonds are high yield bonds: they integrate rewards from projects winning Parachain Slot Auctions and offer a superior yield than the upcoming Polkadot Internet Bonds.

Reason 4. Boost your rewards through lending. As Parachain Bonds hold some fundamental value, OnX Finance will collaborate with Ankr to enable Parachain Bonds lending. Borrow KSM, to buy more KSM Parachain Bonds earning significantly more yield than borrowing interest from KSM.

Reason 5. Easy access to winning Parachain projects. If you do not have the patience to bet on the wrong project that will ultimately not win a parachain slot auction, no worries. You can expect soon to simply buy Parachain Bonds on auction marketplaces. It might cost more than KSM price to get one KSM Parachain Bond, but at least you have certainty that you bet on a winning project without bearing the risk of contributing KSM to a losing project and not earning rewards in the meantime. Time spent on contributing KSM in a wrong project means lost opportunity to stake KSM and earn rewards in the meantime.

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