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Composable Finance, an innovative blockchain protocol, is running ahead of schedule in its development of an interoperable ecosystem for decentralized finance (DeFi), which can be broadly defined as the use of blockchain to power financial tools. To keep up with their pace of development, the company is raising funds from user contributions through a crowdloan, with the goal of procuring a popular tool called a parachain in the upcoming weeks.
Composable has been making great strides towards obtaining and building its parachain, Picasso, which will be on Kusama, the canary network of the Polkadot blockchain. Parachains are project-specific blockchains that enable communication and data transfers to happen seamlessly across blockchains in the Polkadot ecosystem. The Picasso parachain thus serves as a key component to the interoperable future that Composable envisions. Specifically, Composable is working to build its parachain Picasso with all of the building blocks (called pallets) necessary to introduce a complete DeFi ecosystem to Polkadot.
As recently announced, Composable will be moving up their Kusama parachain bid date, demonstrating the company’s incredible progress towards its goal of delivering an interoperable infrastructure to DeFi.
About the announcement, CEO Cosmin Grigore said, “We initially wanted to bid for a slot in a few weeks – but there’s no point in waiting so long. 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. This will allow Picasso to be a hub for the composable and flexible creation of any decentralized applications that developers can dream up, and we look forward to seeing how the community helps us architect its future. I want to work deeply together with our community on this process, so feel free to reach out to me on Twitter @gcosmintech with feedback and ideas.”
Presently, parachains are purchased via auction. Composable will bid starting with the auction on September 1 and will continue to bid in the four subsequent auctions. Parachains are bought with the native token of their network, meaning a Kusama parachain is purchased with Kusama (KSM) tokens. To have enough KSM for the fast-approaching bid date, Composable announced their upcoming Picasso network crowdloan.
This crowdloan will be capped at 100,000 KSM, which the company believes will position them well for parachain procurement. The period for this crowdloan will total 48 weeks and be broken down into eight equal lease periods lasting six weeks apiece. Contributors to the crowdloan will be rewarded for staking (locking up) their tokens for these lease periods:
In preparation for the launch of the Picasso parachain on Kusama, Composable has shared that they will be releasing the Picasso Network token (PICA). This token will serve as the native token to the parachain and live solely on Picasso while providing important functionalities such as voting on the implementation of new pallets to the platform.
As Composable consistently aims to reward people who support them, two million PICA (or 20% of the total token supply) have been set aside for distribution to those who stake in the crowdloan. If the parachain bid is successful at auction, the staked KSM will be routed through yield farms (investment strategies in DeFi that provide a yield on deposits), providing an additional base annual percent yield (APY) to those who participate.
To add further incentives to support the crowdloan, Composable has created a referral program to generate referral codes. If a person contributes 100 KSM or more to the crowdloan through one of these codes, the person who referred them will receive a 20% bonus on their PICA token rewards.
These rapid developments from Composable are promising for the much-desired and much-needed interoperable future of DeFi. The company’s announcement of their crowdloan is even more exciting, as it means this future is closer than previously thought.
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