QUARTZ LAUNCHES ON KARURA SWAP with Mining Rewards in QTZ, KAR and aUSD

Bootstrap mode begins on 13th April with 2,000,000 QTZ, 3000 aUSD and 1500 KAR in incentives

Karura Swap, an AMM-style decentralised exchange on Kusama, has joined forces with Unique Network to introduce its latest trading combo QTZ/aUSD and QTZ/KAR! The pairs will go live in Bootstrap mode on 13th April, 2022 at 22:00 hours UTC with trustless trading scheduled to go live following 168 hours of one- or two-sided bootstrap provisioning on Karura.

To mark this special occasion, Unique Network has allocated liquidity mining rewards totaling 2,000,000 QTZ. Acala has allocated 3,000 aUSD and 1,500 KAR for incentives. The two reward pools will be available to QTZ/aUSD and QTZ/KAR liquidity providers over the span of the next three months. The reward pool also provides a 50% bonus for a Loyalty Program available to Karura Swap users who keep their rewards in the pool until the program’s close.

See below for context and details!

What is Karura and aUSD?

Karura is the DeFi hub for the Kusama ecosystem and boasts several financial primitives including a trustless staking derivative, a decentralised exchange to provide liquidity and power financial innovations, and the aUSD stablecoin.

aUSD is a decentralised, multi-collateralized stablecoin backed by cross-chain assets, serving as the native stablecoin for the Kusama and Polkadot ecosystem. aUSD is designed to maintain a peg relative to the US Dollar, allowing users to transact, trade, and facilitate services using aUSD while shielding users from price volatility customary to the crypto asset economy.

Why list Quartz on Karura?

Unique Network applications can create their own cryptocurrencies as Substrate tokens or as an ERC-20 compatible fungible token. The first ambitious goal for Unique Network is to enable paying Quartz network fees in application currency to help their users avoid the necessity to deal with both QTZ and application tokens, and finally to enable application developers to sponsor user transactions to completely shield the end users from dealing with cryptocurrencies and creating the perfect frictionless user experience.

To maintain the sustainability and longevity of the Quartz community and tokenomics, we need to exchange application tokens back for Quartz. To complete the circle, a seamless exchange between application tokens and QTZ is needed. For this, we need to list QTZ on the Karura swap as the first step.

(See Quartz tech paper to read more on the subject of Transaction Sponsoring and Advanced Economic Models.)

Liquidity Bootstrap | Why is it Needed and When Does it Start?

A listing can begin with or without a Bootstrap period. In most cases, the Bootstrap period is beneficial, as trading is frozen for a period of time. Favourable conditions encouraged during the Bootstrap period include certain liquidity requirements are met to ensure reasonable slippage, allow for a consolidated reasonable exchange ratio, and avoid adversarial operations such as front-running. During the Bootstrap period, anyone who wants to become a liquidity provider (LP) can provide liquidity for one side, e.g., Quartz or both sides (Quartz and aUSD/KAR) of the trading pair. The Bootstrap period ends once time and liquidity requirements are achieved. Upon completion, an opening exchange ratio can then be settled.

The LP tokens are allocated to each liquidity provider. LP Shares (= LP Tokens / Total LP Tokens) is a pro-rata representation of LP's contribution to the overall liquidity of a given pool. LP shares can then be redeemed for underlying assets (Quartz and aUSD) at any time.

QTZ / aUSD Bootstrap Conditions

Below are the conditions for Bootstrap and liquidity conditions for QTZ and aUSD combo:

• Enable Bootstrap for QTZ/aUSD pool at block #1759770
• Bootstrap Start Time: April 13, 2022 10:00 PM (UTC)
• 168 hours of bootstrapping period ends at block #1787398
• Minimum liquidity target is 500,000 QTZ OR 50,000 aUSD
• Minimum contribution requirement is 10 QTZ OR 1 aUSD

No trading is allowed during Bootstrap, and trading can only be enabled once the following criteria are met:

• Not before the ending block has passed AND
• Either the pool has 500,000 QTZ OR 50,000 aUSD in liquidity
• Both QTZ & aUSD has >0 liquidity

Below are the conditions for Bootstrap and liquidity conditions for QTZ and KAR combo:

QTZ / Karura Bootstrap Conditions

• Enable Bootstrap for QTZ/KAR pool at block #1759770
• Bootstrap Start Time: April 13, 2022 10:00 PM (UTC
• 168 hours of bootstrapping period ends at block #1787398
• Minimum liquidity target is 500,000 QTZ OR 25,000 KAR
• Minimum contribution requirement is 10 QTZ OR 0.1 KAR

No trading is allowed during Bootstrap, and trading can only be enabled once the following criteria are met:

• Not before the ending block has passed AND
• Either the pool has 500,000 QTZ OR 25,000 KAR in liquidity
• Both QTZ & KAR have >0 liquidity

Once the Bootstrap Kicks off, you can contribute liquidity for any of these pairs at the same time:

QTZ, or aUSD, or QTZ & aUSD

QTZ, or KAR, or QTZ & KAR

The actual exchange rate of QTZ/aUSD and QTZ/KAR can only be known once the Bootstrap is completed. Conditions are as follows:

• At the time of your contribution, you are allocated a number of LP tokens, and indicative LP shares of the pool, which are subject to change as more liquidity is added.
• You should only participate if you want to become a liquidity provider for the pool. Please be aware of various risks associated with being a liquidity provider .

Any Questions, please drop a message in the Unique Network Telegram Group. Our moderators are there to help you!

Earn Rewards with QTZ, aUSD, and KAR Liquidity Mining

For liquidity providers who provision QTZ, aUSD, KAR, or both assets to a pool either during Bootstrap mode or once trading is enabled, Quartz and the Acala Foundation have created the following reward pools:

QTZ/aUSD Rewards Pool

To Qualify: Provide liquidity to the pool and stake their LP tokens Rewards Period: 3 months Rewards: 3,000 aUSD and 1,000,000 QTZ

QTZ/KAR Rewards Pool

To Qualify: Provide liquidity to the pool and stake their LP tokens Rewards Period: 3 months Rewards: 1,500 KAR and 1,000,000 QTZ

About Acala Acala is a decentralized finance network powering the aUSD ecosystem. The core product, Acala USD (aUSD), is a decentralized, multi-collateral, crypto-backed stablecoin serving as the native stablecoin of the Polkadot ecosystem. Acala’s Ethereum-compatible blockchain has built-in DeFi protocols for application developers to leverage, including a trustless staking derivative (liquid DOT — LDOT), a decentralized exchange, and the EVM+, a hybrid EVM offering fully Ethereum-compatible development environment plus full compatibility with Substrate.

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About Unique Network & Quartz

Unique Network is the NFT parachain of the Polkadot ecosystem; it brings shared state security from the proof-of-stake relay chain and allows you to experience the power of granular authorization levels and flexible economic models. Unique also enables you to implement a fully tokenized ecosystem with open-source and white label tools. As a blockchain, Unique Network allows building completely new generation NFT dApps on top of it or migrating the existingNFT solutions on the market to achieve more scalability, new functionality, and interoperability.

Quartz, Unique Network’s parachain for Kusama, is a new user-friendly platform for users and developers to test extreme innovation in NFTs and build for the next generation. Built on Substrate, Quartz gives you the most versatile options for discovery and democratization of the NFT ecosystem and marketplaces (with very low barriers for entry). Advanced features like Flexible Economic Models, Scheduled Transactions, Re-fungibility, and Nested NFTs will all be available via Quartz, allowing users to own UX/UI for fans and customers.