KR1, a blockchain and crypto-asset investment firm, has now announced that it has participated in the HydraDX (HDX) crowdloan and Polkadot (DOT) parachain auctions. KR1 contributed a total of 350,000.00 DOT to the HydraDX crowdlending campaign, which successfully secured a parachain spot in the ongoing Polkadot parachain auction series.
HydraDX.io is a cross-chain liquidity protocol designed to enable frictionless liquidity for crypto assets across different chains. Unlike most decentralized exchanges in production today, which rely on separate pools for separate assets, HydraDX’s solution allows “all” assets to be deposited into a shared pool of liquidity, the “Omnipool”, which makes it possible to obtain unprecedented efficiencies.
The contributed DOT will be time-locked on the Polkadot blockchain for 96 weeks and will be returned to KR1 after the respective HydraDX parachain lease is completed. Following the success of the HydraDX parachain auction, KR1 will receive a TBD amount of HydraDX tokens over a 96-week period in exchange for supporting the HydraDX crowdlending campaign.
This method of token distribution does not involve any direct capital investment, rather it is an indirect investment whose opportunity costs are the inaccessibility of locked DOT funds as well as the forfeiture of any staking returns on the DOT contributed for the period.
Additionally, 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 support of HydraDX’s seed funding round which was announced on the 22nd December 2020, and a much smaller, yet to be determined, amount of HDX tokens in accordance with the company’s contribution to Basilisk’s Kusama crowdlending campaign and parachain auction announced on September 22, 2021.
HDX is the native token of HydraDX. It will be used for governance, staking, etc.
“HydraDX winning a Polkadot parachain slot is the next big step for the project and a huge community endorsement of the protocol’s goal of gathering all liquidity into an ‘ocean of liquidity’. We view HydraDX as the endgame 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 and co-founder of KR1