How We’re Protecting Against Downside Of KSM Staked For Our Parachain

How We’re Protecting Against Downside Of KSM Staked For Our Parachain

By Equilibrium | Equilibrium | 25 Aug 2021


The Genshiro community is staking KSM in support of our effort to win a Kusama parachain slot. But just like any other cryptocurrency, KSM is prone to volatility and potential negative price action. We’re going to explain our plan for protecting the community against any KSM downside risk while KSM are staked during all the period of parachain lease (48 weeks).

The primary thing to know is that we have allocated a maximum of 10% of the total GENS supply as a hedge for our community. In the case that KSM price should decline, we will distribute it to crowdloan participants, covering up to 50% of the downside.

We will fix the price of KSM at the beginning of the campaign, and the GENS distribution will kick in if KSM price turns out to be below that point at the end of the parachain lease. The actual amount of tokens to be distributed will be defined through a proportion between their actual allocation and the price drop compared to the initial price, divided by the whole range that we are insuring.

GENS has upside potential, so we are extremely confident in participants being protected against downside risk during the crowdloan.

Our crowdloan campaign on Kusama is starting off very soon with an early bird bonus of 25%. Keep an eye on our announcements and stay with us as we build the future of finance!


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Equilibrium
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The first decentralized interoperable money market that combines pooled lending with synthetic asset generation and trading. Get access to cross-chain liquidity.


Equilibrium
Equilibrium

The first decentralized interoperable money market that combines pooled lending with synthetic asset generation and trading. Get access to cross-chain liquidity.

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