What Is Acala_What is Karura_An Introduction to the DeFi Hubs of Polkadot and Kusama.srt

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Hey everybody, this is Dan Reecer. I'm VP
of Growth at Acala and Karura 

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and today I'm going to be giving you an
overview of DeFi, 

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Polkadot and Kusama, and then most
importantly an overview of Acala  

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and
Karura. 

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First I'm going to start with some
basics around what DeFi is, 

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why this movement has kind of started
and what problems it solves. 

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Then we'll move into some necessary
context of Polkadot and Kusama, 

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before we move into Acala and Karura. 

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Crypto and DeFi of course started around
2008-2009, 

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and really what decentralized
finance is trying to solve 

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is this problem of access to the
financial system. So 

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millions of people around the world,
depending on what country they live in, 

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have much different access to the
financial system to earn 

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better outcomes on their finances
than others in kind of more people 

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who are just a bit luckier.
There's also some issues around 

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governments: different governments around
the world have 

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more or less control over the financial
system of their countries 

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and people who live in places where
the government does have more control 

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over the economy
and has created problems like inflation, 

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DeFi creates a way for people to have
access to a new financial system 

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for better opportunities on their money.
So this new system is more open, it 

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requires
less restrictions so you can access it 

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sometimes without
an identification, without a bank account, 

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without a credit score.
So a much more open financial system 

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that we're all kind of building together
now. 

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The main categories of DeFi are really a
reflection of a lot of the 

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primary categories of the
traditional finance world that have made 

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their way
into DeFi. So you've got money markets, 

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which is kind of like peer-to-peer
borrowing and lending, 

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derivatives payments, decentralized
exchanges. 

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Another category here is stable
coins which is very 

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important for the DeFi ecosystem, because
of course you've got 

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volatile assets like Bitcoin and
Ethereum that can vary 

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and then you've got stable coins, which
allow people to hold something that 

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actually kind of retains the
Stable PEG at a certain value. 

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This was pretty shocking to me when I
made this slide. 

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Going back just one year ago, in
April 2020, 

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the amount of total value locked in DeFi
was around 800 million 

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and fast forward to today this has done
about an 82 or 83x 

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on just the previous year in total value
locked in DeFi 

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protocols. DeFi
in summer 2020, at least Northern 

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hemisphere summer,
was what kind of set off this trend. 

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There was a lot of
new teams, new liquidity flowing into 

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DeFi that really set off this trend that
we we still see continuing today. 

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Money markets compound is one of the
the best and kind of 

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pioneering teams in the Ethereum DeFi
space. This is an example of 

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of one of the the key use cases of DeFi
now, where 

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you see here on the left you've got a
supply market and then on the right you 

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have borrowers. 

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On the left, if i have Dai as my stable
coin, I could go in and provide 

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liquidity to that market and earn 6.8
percent, 

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at least on this day. Same on the right.
If i needed to go out and say I thought 

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Bitcoin was going to go up or I had
a need for a stable coin, I could go and 

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borrow
Dai with something as collateral, 

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as long as I'm willing to pay that
interest rate on that stable coin. 

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So this is where it becomes kind of this
peer-to-peer lending 

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pool, hosted by a compound. 

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Stable coins is another important aspect
of DeFi where you've got 

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four primary types of stable coins.
You've got 

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prominent names like USDC, which is
kind of a coinbase 

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token which is fiat collateralized so
you've got actual US Dollars in a bank 

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backing every USDC token that is issued
into the market. 

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And then the third one here you can see
crypto collateralized. So these are 

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kind of algorithmic crypto back
stable coins. 

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MakerDAO DAI is the most prominent
example of this, 

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and Acala and Karura are both building
our own stablecoin. So we've got the 

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Acala dollar aUSD, as you can see here on
the slide, 

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and then kUSD for our sister
network 

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Karura, which is the Korea Dollar.
One example here value is a team 

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building out of Colombia.
They're actually building with Substrate 

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technology, same as
Acala's building with, and they have 

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proven a really cool example of a stable
coin being used in the real world. So, 

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they've got a lot of people in Colombia
who need to send money home to their 

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family and friends in Venezuela
and they've sent over 8 million 

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dollars home using the value application,
using stable coins. 

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Uniswap is another primary example of a 

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major DeFi protocol
on Ethereum, 

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which is a what's called an automated
market maker 

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decentralized exchange. So this is a
simple swap from one token to another 

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and the way that's made possible is
because on the back end there's people 

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providing liquidity to every pair on
Uniswap. 

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In return for providing liquidity to
that pair, 

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they actually earn LP tokens and earn
rewards on these liquidity provider 

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tokens. So now that we have some
background in 

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in DeFi and in that whole ecosystem,
prominent examples of Ethereum DeFi, let's 

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move on to
Polkadot and why Polkadot was created. 

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So the person who invented the Ethereum
virtual machine 

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and the person who created the Solidity
programming language itself, 

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he, being Gavin Wood, realized
very early on that Ethereum was not 

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going to scale, it wasn't going to work
and 

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fast forward to now 2021 he was right:
look at the gas fees on Ethereum. 

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Ethereum can't scale. Everyone's waiting
on Ethereum 2.0, 

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which is going to take years to deliver.
So in the meantime Gavin, 

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Robert Habermeier and Peter Czaban
co-founded Polkadot. 

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They also built Kusama, the kind of
wild cousin network to 

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Polkadot, which I'll get into next. Gavin
created polkadot because there was this 

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need to 

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create a multi-chain ecosystem versus
these individual 

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isolated blockchains like Bitcoin and
like Ethereum. 

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There was also a need to add
customization to blockchain building. 

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Platforms like Ethereum are this let's
call it a layer-one blockchain but 

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they're trying to do everything with
just one chain. It wasn't customized nor 

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optimized for any specific purpose.
With Substrate, which is the framework 

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that Gavin created for building on Polkadot
and Kusama, 

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with Substrate we can actually custombuild
blockchains and 

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and alter the blockchain at the core
level 

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for a specific use. So in Acala and Karura
case we have 

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optimized the core of our blockchain
platform, 

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which is a layer one equivalent to
Ethereum, we've optimized that 

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for DeFi specifically. When we
launch 

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on Acala and on Polkadot, we'll be plugging
into this 

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existing network of other blockchains
that we can communicate 

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value and data with and also, potentially
even more importantly, the security of 

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Polkadot. So, Polkadot is now
a 40 plus billion dollar network, so all 

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of that value
is held within these validator nodes 

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and all those validators are able to
help 

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validate transactions for
accuracy and also secure 

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all the parachains that connect to the
Polkadot relaychain, as you can see in 

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this
diagram here. Polkadot will also, 

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not only connect blockchains within
Polkadot, but it will also bridge to 

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existing networks like Ethereum
and like Bitcoin. And then, as I mentioned, 

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we've got Kusama as well. Kusama is the
exact same code base, 

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the same architecture as Polkadot with
this 

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relaychain in the middle and then all
these parachains are 

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these customized blockchains built
on top of Kusama's Layer 0 

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meta-protocol,
as we call it. Polkadot and Kusama will 

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exist
together and this pink dot in the middle 

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is meant to show you that these two
networks will be bridged as soon as both 

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are live. So
anything built on Kusama will be able to 

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communicate with any
parachain or application on Polkadot. 

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Kusama is slightly different than Polkadot
in that 

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one, it's faster and not in terms of
transaction speed, but in terms of 

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how quickly you can get things done and
approved through governance. So 

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developers love Kusama because you can
actually push code changes much quicker. 

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It takes seven days to upgrade Kusama
versus 

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28 days to get approvals through
governance on Polkadot. 

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Kusama is also what I like to call an
innovation network, 

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also sometimes called a canary network,
but this is where 

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innovation will happen. You can test
things on testnet 

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and then bring them to Kusama,
which is a real world environment 

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with real value, and on Kusama is where
you really start to see how things work 

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out in the wild. Just like Polkadot,
Kusama is a proof-of-stake  

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network
so 

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the validators are running proof of
stake and then you can also stake KSM to 

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earn
staking rewards as you hold KSM. 

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As I mentioned, where Polkadot and
Kusama will be bridged, 

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we've used this strategy also in the way
that we launched our network. So 

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we're building Acala, which is
the DeFi hub of Polkadot. 

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We are also building Karura, which is the
DeFi hub of Kusama. 

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A lot of times people ask what will
the future be for Karura once Akala 

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launches, the answer is that both Acala
and Karura will be running in parallel 

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together.
Acala will make Karura better and Karura 

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will make Acala better,
just like the relationship between 

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Polkadot and Kusama will
continue to operate in parallel together. 

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Acala and Karura were both founded by
these four people on the slide. 

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You've got Ruitao, our CEO, Bette
our COO. I work with them quite a 

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bit they're both more on the business
side 

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but both are also very technical
engineering minds, 

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product people with great experience
not only in the blockchain world but 

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also in traditional product development.
Then you've got Fuyao on the upper right. 

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So Fuyao is
leading and managing 

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everything in China, based in
Shanghai. He's also the Founder and CEO 

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of Polkawallet 

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and met up with the with Ruitao, Bette and
Bryan 

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I think about a couple years ago at a
hackathon and the four of them created 

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the networks Acala and Karura together.
And then last but not least you've got 

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Bryan Chen. Bryan is one of the best
substrate developers in the world. 

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He's our CTO and that leads all of our
development. 

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Bryan also founded and leads the
Substrate Developer Academy 

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and continues to build and give
back to the Substrate Community as he 

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grows 

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the number of developers who are
building with the Substrate framework. 

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Acala is backed by several top firms so
Pantera, 

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coinbase Ventures, DCG,
Polychain Capital, just to name a few, 

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Hypersphere from
our friend Jack and several others on 

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the slide here and then
many others as well. 

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So let's get into Acala and Karura.
Acala is 

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two things: it's a platform for
building 

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applications on top of, as well as our
own set of applications that we've built 

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on our blockchain.
This is kind of a new category 

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development that I haven't seen done
before, 

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where our team is actually launching the
blockchain itself a Layer 1 blockchain 

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like Ethereum, 

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while also launching applications on top
of that chain. 

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Our decentralized exchange you could
think of as similar to Uniswap, 

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our borrowing market for the Acala Dollar
and Karura dollar, you could think of as 

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similar to Maker
and then we've got liquid staking as 

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well. This is essentially like a Layer 1
blockchain, 

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like Ethereum launching from day one
with Maker and Uniswap on top, 

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plus liquid staking. Very excited to
get this out in 

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in live. This diagram helps illustrate
what i just mentioned. 

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The Acala DEX, the liquid staking
product and the aUSD stablecoin are 

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built into the Layer 1 blockchain
itself and then on top of our blockchain 

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we've built front-end applications
that leverage 

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these DeFi primitives, as we call them,
that are built into the blockchain. 

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When Acala launches,
you'll not only be able to build 

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applications on Acala, but you'll be
able to use 

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all the applications that we've built
ourselves. Then of course at the 

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bottom here you've got Polkadot, which
is the 

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the multi-chain network kind
of securing 

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Acala and providing cross-chain
capability. 

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These are the three products that I have just
mentioned and then the fourth one I'll 

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just mention it very quickly.
The Decentralized Sovereign Wealth Fund 

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or our treasury
will be built up over time in order 

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to help create
self-sustainability for Acala and for 

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Karura.
In Acala's case, we hope to build up this 

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Decentralized Sovereign Wealth Fund
enough so that in the future, 

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when we need to bid on a slot in a
parachain auction, 

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we can actually bid with our own
Sovereign Wealth Fund instead of 

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needing to raise KSM or DOT through
a crowdloan. 

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When Ruitao, Bette, Fuyao and Bryan
were deciding 

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where to build Acala, there were several
options: there was Ethereum 2, there was 

213
00:14:33,600 --> 00:14:36,080
Cosmos.
There were several different choices 

214
00:14:36,080 --> 00:14:40,080
that they evaluated, but of course
they decided to choose Polkadot. But why 

215
00:14:40,080 --> 00:14:42,320
did they choose Polkadot? It's because
of these 

216
00:14:42,320 --> 00:14:46,960
kind of six core things: the crosschain
ability and interoperability, 

217
00:14:47,520 --> 00:14:50,960
the ability to use Substrate to
customize the chain specifically for 

218
00:14:50,960 --> 00:14:54,480
DeFi,
the ability to handle extremely high 

219
00:14:54,480 --> 00:14:57,360
transaction rates or transaction volume
through Polkadot, 

220
00:14:59,120 --> 00:15:03,600
the ability to govern the network on
chain, so 

221
00:15:03,600 --> 00:15:08,000
getting the whole community of ACA
holders to help take part in governance, 

222
00:15:08,000 --> 00:15:12,720
versus with Ethereum just one person or
a group of Founders 

223
00:15:12,720 --> 00:15:17,200
get to decide the future of the network.
The plug-and-play security is a huge 

224
00:15:17,200 --> 00:15:20,400
aspect where we don't have to actually
go out and recruit our own set of 

225
00:15:20,400 --> 00:15:24,560
validators to secure our network.
That's why we want to earn a slot on 

226
00:15:24,560 --> 00:15:27,840
Polkadot and plug into this existing
network of security. 

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00:15:29,120 --> 00:15:32,160
Last in the bottom right is the
ability to upgrade 

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00:15:32,160 --> 00:15:37,760
without forking.Over time we'll be
able to upgrade the blockchain itself 

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00:15:37,760 --> 00:15:40,400
without needing to fork the community
like we've seen with 

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00:15:40,960 --> 00:15:44,160
maybe ETH and ETH Classic and other
communities over time. 

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00:15:46,880 --> 00:15:51,200
Here's a few of our products, just some
screenshots of them. 

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00:15:51,200 --> 00:15:55,280
On YouTube you can see some product
demos of our products and also 

233
00:15:55,840 --> 00:16:00,320
on our applications website
apps.acala.network you can actually go in and 

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00:16:00,320 --> 00:16:05,440
use them live on testnet.
This is what our aUSD product looks 

235
00:16:05,440 --> 00:16:09,520
like where people can actually come in
and collateralize, for example, Bitcoin 

236
00:16:09,520 --> 00:16:13,120
and take out a loan
of aUSD with their Bitcoin as collateral 

237
00:16:13,120 --> 00:16:18,560
without ever having to sell
their Bitcoin. Liquid DOT staking is the 

238
00:16:18,560 --> 00:16:22,720
process of staking DOT
to earn interest on your DOT, but, while 

239
00:16:22,720 --> 00:16:26,160
your DOT
is staked in earning staking rewards, 

240
00:16:26,720 --> 00:16:29,760
you also receive what's called LDOT or
liquid DOT 

241
00:16:30,720 --> 00:16:34,000
and this is kind of like a receipt for
your DOT that is 

242
00:16:34,720 --> 00:16:38,080
staked and the LDOT that you hold will
actually increase 

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00:16:39,040 --> 00:16:42,560
in value, the number will increase,
because it's going to be reflecting 

244
00:16:43,120 --> 00:16:46,160
the returns that your underlying stake
DOT are earning. 

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00:16:47,280 --> 00:16:51,520
With that LDOT you can actually, just
like the name says, it becomes liquid, so 

246
00:16:51,520 --> 00:16:54,640
you can
come and use your LDTO and use that 

247
00:16:54,640 --> 00:16:58,400
within
all of our DeFi platforms, like the last 

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00:16:58,400 --> 00:17:04,240
slide that i just showed you with aUSD.
I could stake DOT, take out LDOT 

249
00:17:04,240 --> 00:17:07,280
and then with the LDOT I could
collateralize that and take out a loan 

250
00:17:07,280 --> 00:17:10,720
for aUSD and use that
for whatever purpose I wanted. 

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00:17:16,080 --> 00:17:21,040
The Acala DEX looks
some looks like this: so there will be 

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00:17:21,840 --> 00:17:24,320
trading pairs that you can trade, so in
this example it's Acala 

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00:17:24,880 --> 00:17:30,720
ACA, an aUSD stablecoin,
and the way this is is enabled is 

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00:17:30,720 --> 00:17:33,600
because on the back end there's a whole
pool of liquidity where people are 

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00:17:33,600 --> 00:17:36,800
earning rewards for providing liquidity
to certain pairs. 

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00:17:38,320 --> 00:17:42,880
In this case if I'm trading on the ACA
and aUSD pair, 

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00:17:42,880 --> 00:17:46,400
I would be using liquidity from people
who are providing liquidity to that pair 

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00:17:46,400 --> 00:17:47,120
on the back end. 

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00:17:49,600 --> 00:17:53,040
I won't go through all these token
utility 

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00:17:53,040 --> 00:17:58,800
use cases for ACA, but at its most basic
level, ACA is the governance token for 

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00:17:58,800 --> 00:17:59,600
Acala 

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00:17:59,600 --> 00:18:03,040
and will be used for processing all the
transaction fees on the network. 

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00:18:05,760 --> 00:18:14,560
Now let's get into Karura.
Karura is a platform just like Acala, 

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00:18:14,560 --> 00:18:17,440
a blockchain platform and a set of
applications 

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00:18:18,880 --> 00:18:24,320
all optimized for innovation
and experimentation on Kusama. This is 

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00:18:24,320 --> 00:18:27,120
going to be a really fun
network to be involved in because 

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00:18:27,120 --> 00:18:29,520
there's going to be a lot of new
products launching here, 

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00:18:29,520 --> 00:18:32,240
trying out new risk parameters, new
features 

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00:18:33,200 --> 00:18:36,720
that will go to Karura and then, if proven,
we'll move on to Acala. 

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00:18:39,920 --> 00:18:41,680
We will be launching this
first 

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00:18:41,680 --> 00:18:45,680
on Kusama and the upcoming parachain
auction is all about 

272
00:18:45,680 --> 00:18:51,680
Karura. Karura will be launching on Kusama
and this Layer 1 blockchain will have 

273
00:18:51,680 --> 00:18:57,120
the same DeFi primitives as Acala does.
In this case the Karura DEX, the liquid 

274
00:18:57,120 --> 00:19:01,600
staking for KSM,
instead of for DOT on Acala, and then the 

275
00:19:01,600 --> 00:19:07,200
Karura dollar kUSD as the stable coin.
The Karura apps that 

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00:19:07,200 --> 00:19:10,000
we've already built on top of our
blockchain will leverage 

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00:19:10,000 --> 00:19:13,120
all those products that have built been
built into the blockchain itself. 

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00:19:16,480 --> 00:19:19,040
Here's a look at the UI at the
application layer. 

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00:19:19,840 --> 00:19:22,240
On the last slide what I showed you up
here, 

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00:19:23,280 --> 00:19:32,800
these apps look like this:
this would be like creating a loan on 

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00:19:32,800 --> 00:19:38,160
the left you could go and do a swap,
do your liquid staking. This will all 

282
00:19:38,160 --> 00:19:40,800
be ready
the day we launch on Kusama. 

283
00:19:43,520 --> 00:19:47,760
Just to reiterate, Kusama and
Polkadot will be bridged and 

284
00:19:47,760 --> 00:19:49,680
and Karura and Acala will continue to 

285
00:19:49,680 --> 00:19:52,000
operate together even after Acala
launches. 

286
00:19:52,560 --> 00:19:56,880
After Acala launches, we will be
operating two networks in parallel 

287
00:19:56,880 --> 00:19:59,280
and those will continue to operate
together. 

288
00:20:02,000 --> 00:20:06,000
The distribution of the KAR supply looks
like this: 

289
00:20:06,000 --> 00:20:10,160
so we reduced the amount of tokens going
to the founding team and and shifted 

290
00:20:10,160 --> 00:20:13,520
that to the community.
We've also got some backers and early 

291
00:20:13,520 --> 00:20:16,640
backers from
when we first started the project and 

292
00:20:16,640 --> 00:20:18,400
then, when you break down the community
side, 

293
00:20:19,440 --> 00:20:21,920
we have auction rewards for the
parachain auction 

294
00:20:22,560 --> 00:20:24,720
and liquidity program, which I'll walk
through next, 

295
00:20:25,920 --> 00:20:29,280
some ecosystem development and some
rewards that are 

296
00:20:29,280 --> 00:20:31,680
being kind of reserved, as well as
treasury 

297
00:20:32,320 --> 00:20:38,800
allocation to keep in the Karura treasury for
the development of the network. Same 

298
00:20:38,800 --> 00:20:43,520
token utility for Karura as Acala. This
will be used for transaction fees and 

299
00:20:43,520 --> 00:20:47,440
governance of the network as well as
several other different use cases like 

300
00:20:47,440 --> 00:20:50,400
deploying smart contracts and other
use cases. 

301
00:20:53,680 --> 00:20:59,440
How do we launch on Kusama?
We need to win an auction against 

302
00:21:00,400 --> 00:21:04,160
other pairchain teams in order to
launch in this 

303
00:21:04,160 --> 00:21:08,000
slot here on Kusama. That process
looks like this. 

304
00:21:10,880 --> 00:21:15,200
What you can see here, where this
trophy, is this is the the biggest event, 

305
00:21:15,200 --> 00:21:16,240
from here 

306
00:21:16,240 --> 00:21:19,520
to here. This is the parachain auction,
where we 

307
00:21:19,520 --> 00:21:22,400
and other teams are bidding against each
other in an auction 

308
00:21:23,360 --> 00:21:29,200
to try to win this first slot on Kusama.
The goal for the Karura team is absolutely 

309
00:21:29,200 --> 00:21:31,840
to win
the auction number one. 

310
00:21:31,840 --> 00:21:34,080
We want to be the first team to launch on
Kusama. 

311
00:21:34,880 --> 00:21:38,000
Before the auction starts, there will
also be this thing called a crowdloan 

312
00:21:38,000 --> 00:21:40,800
that opens.
A crowdloan is actually how the 

313
00:21:40,800 --> 00:21:43,840
community can contribute KSM as you see
here 

314
00:21:44,640 --> 00:21:48,080
to our crowdloan, so that we can use all
the KSM 

315
00:21:49,360 --> 00:21:51,360
that we have in our crowdloan as our
bid 

316
00:21:52,480 --> 00:21:55,840
in the auction. When we win the
auction, 

317
00:21:55,840 --> 00:22:00,800
Karura will then launch on Kusama and
when that happens all the KSM that was 

318
00:22:00,800 --> 00:22:04,720
contributed back here
to the crowdloan will be locked in the 

319
00:22:04,720 --> 00:22:08,720
Kusama
relaychain. It will not be touched, it 

320
00:22:08,720 --> 00:22:13,040
can't be touched by the team at all.
And then at the same time the native 

321
00:22:13,040 --> 00:22:18,240
token of Karura will be issued
to all the contributors at a 12 to 1 

322
00:22:18,240 --> 00:22:22,720
minimum
ratio. KAR gets distributed to everyone 

323
00:22:22,720 --> 00:22:26,000
who contributed KSM and then Karura would
launch, 

324
00:22:26,000 --> 00:22:29,120
all the DeFi applications would be live
and we would be 

325
00:22:29,120 --> 00:22:33,200
kind of in business. At the end
of the 48-week slot, 

326
00:22:34,080 --> 00:22:38,080
all the KSM that was contributed by
anyone who 

327
00:22:38,080 --> 00:22:40,880
participated in the crowdloan would then be
returned to them. 

328
00:22:43,040 --> 00:22:45,920
This is what the Karura crowdloan will
look like. 

329
00:22:45,920 --> 00:22:50,640
We will start with a minimum of 12 KAR
for every 1 KSM. 

330
00:22:51,360 --> 00:22:54,560
This is the reward that everyone who
contributes KSM in the  

331
00:22:54,560 --> 00:22:55,440
crowdloan would
get 

332
00:22:56,000 --> 00:23:01,120
in KAR. So depending on the participation,
the amount of KAR could be much higher 

333
00:23:01,120 --> 00:23:03,440
than 12 but this is just the baseline
that we've set. 

334
00:23:05,840 --> 00:23:07,680
Down here you can see the
30%. 

335
00:23:08,960 --> 00:23:12,400
What this is referring to is that 30%
of the tokens, that are 

336
00:23:12,400 --> 00:23:17,360
distributed to contributors, will be
liquid when the network launches, the 

337
00:23:17,360 --> 00:23:22,400
other 70% will then
will then vest over the remainder of 

338
00:23:22,400 --> 00:23:25,760
the 48 weeks, so gradually
every day. 

339
00:23:30,960 --> 00:23:33,360
Now, in terms of the liquidity mining
program, 

340
00:23:34,160 --> 00:23:37,840
another thing that I'm really
excited to get started, so 19% 

341
00:23:37,840 --> 00:23:41,040
of the first year's circulating supply
of KAR 

342
00:23:41,920 --> 00:23:46,400
will be distributed in the form of
liquidity mining or liquidity provider 

343
00:23:46,400 --> 00:23:47,440
programs. 

344
00:23:47,440 --> 00:23:49,840
This translates to 6% of the
total supply 

345
00:23:50,480 --> 00:23:54,160
and just keep in mind the supply of
Karura is fixed, it will never increase. 

346
00:23:54,720 --> 00:23:58,080
So pretty significant opportunity to be
involved in 

347
00:23:58,080 --> 00:24:04,240
the early liquidity providing program.
Liquidity mining rewards can be 

348
00:24:04,240 --> 00:24:07,200
distributed in 3 primary ways:
through 

349
00:24:07,200 --> 00:24:12,800
providing liquidity in the DEXs, through
minting kUSD stablecoins 

350
00:24:12,800 --> 00:24:18,800
and then for staking KSM
for liquid KSM or LKSM. 

351
00:24:19,760 --> 00:24:24,720
These interest rates or these APY
will that will definitely vary over time. 

352
00:24:24,720 --> 00:24:28,400
There's going to be times when certain
trading pairs or certain 

353
00:24:29,040 --> 00:24:32,320
protocols need more liquidity and in
that case 

354
00:24:32,880 --> 00:24:37,840
the APY would be would rise
for the ones that need more liquidity 

355
00:24:37,840 --> 00:24:45,840
and potentially decline for the ones who
are sufficiently liquid at the time. 

356
00:24:47,200 --> 00:24:50,000
This is an example of of one person
and 

357
00:24:51,040 --> 00:24:54,080
having the ability to earn these
liquidity mining 

358
00:24:54,080 --> 00:24:57,840
rewards through these three main
mechanisms, minting stable coins 

359
00:24:58,560 --> 00:25:03,200
for a specific APY at that time,
providing liquidity to the DEXs, 

360
00:25:03,200 --> 00:25:05,680
and then minting LKSM. 

361
00:25:08,560 --> 00:25:12,160
These numbers here are not final
or set and these will 

362
00:25:12,160 --> 00:25:15,760
continually vary and be
adjusted, 

363
00:25:16,560 --> 00:25:20,240
but this is what the decks could
look like. One of the first pairs that 

364
00:25:20,240 --> 00:25:25,360
will go live is
the KAR to KSM pair. There will be 

365
00:25:25,360 --> 00:25:29,600
rewards for that pair
at some APY given the day. 

366
00:25:30,560 --> 00:25:33,200
There could also be other pairs like KSM,
kUSD, 

367
00:25:33,760 --> 00:25:36,640
kUSD BTC, and this will all continue to 

368
00:25:36,640 --> 00:25:39,680
evolve
over time. Also 

369
00:25:40,640 --> 00:25:44,720
with the stablecoin we will see
liquidity mining rewards for people who 

370
00:25:44,720 --> 00:25:48,720
actually go
and take out a loan of KUSD. 

371
00:25:49,680 --> 00:25:53,440
For minting a stablecoin by taking out
a loan you would earn additional 

372
00:25:54,400 --> 00:25:55,840
kUSD on that reward. 

373
00:25:59,120 --> 00:26:04,560
And then last LKSM. So there will be
additional incentives for minting 

374
00:26:05,520 --> 00:26:08,640
LKSM through the action of actually
staking 

375
00:26:08,640 --> 00:26:11,120
KSM and those rewards would be 

376
00:26:11,120 --> 00:26:12,560
distributed in
KAR. 

377
00:26:15,600 --> 00:26:20,320
There's also crosschain assets that
will be making it their way to 

378
00:26:20,320 --> 00:26:25,120
Karura. These are yet to be finalized,
but things like Bitcoin and Ethereum, 

379
00:26:25,920 --> 00:26:29,440
if we needed more Bitcoin liquidity from
say one of the bridges, we could also 

380
00:26:29,440 --> 00:26:31,920
incentivize people to bring Bitcoin over
to 

381
00:26:31,920 --> 00:26:37,840
Karura. That's it.
Thanks for for the patience and 

382
00:26:37,840 --> 00:26:40,000
sitting through this. I hope you learned
something new. 

383
00:26:40,880 --> 00:26:45,600
I know we have a team
watching at the meetup here in China, 

384
00:26:45,600 --> 00:26:49,280
we've also got our team online,
we're always on Discord 

385
00:26:49,280 --> 00:26:52,560
or on Twitter. So feel free to ask us
questions. 

386
00:26:53,120 --> 00:26:56,080
One thing that I would encourage you to
do after today is to go to 

387
00:26:56,080 --> 00:27:00,720
apps.akala.network
Everything that you've seen today is 

388
00:27:00,720 --> 00:27:03,680
live on testnet and ready to launch as
soon as we win 

389
00:27:03,680 --> 00:27:07,840
the auction on Kusama and the
auction on Polkadot. 

390
00:27:08,560 --> 00:27:12,320
So definitely go in and test out these
things. You can get testnet 

391
00:27:12,320 --> 00:27:16,640
tokens through that website
and then try things out. Our goal is to 

392
00:27:16,640 --> 00:27:20,240
win
the first parachain auction on Kusama 

393
00:27:20,240 --> 00:27:23,440
with Karura and our goal is to win the
first parachain auction on 

394
00:27:23,440 --> 00:27:26,960
Polkadot with Acala, so we really
appreciate your 

395
00:27:26,960 --> 00:27:29,600
support in helping achieve this this
goal. 

396
00:27:31,680 --> 00:27:38,000
If you have the desire to follow us on
any of our Social channels, there's 

397
00:27:38,000 --> 00:27:40,880
the linktree for Acala and a linktree
for 

398
00:27:40,880 --> 00:27:45,360
Karura. We've basically put every different
link that we have in the community 

399
00:27:46,240 --> 00:27:50,160
on these websites, so you can
find anywhere to follow us there. 

400
00:27:50,960 --> 00:27:54,880
So that's it. Hopefully you guys have a
good day/good night. 

401
00:27:54,880 --> 00:27:57,920
Thanks for watching and we'll talk soon!
Bye.