The much-anticipated Polkadot parachain slot auction is finally on the horizon. With Proposal 39 now passed, Polkadot is set to launch its first auction on November 11, 2025 — an event already being hailed as a landmark moment for the ecosystem. Given the intense competition seen during Kusama’s two rounds of parachain auctions, expectations for Polkadot’s inaugural auction are sky-high.
Kusama’s second auction cycle concluded on October 13, when Kintsugi, the canary network of Interlay, secured the final slot by locking nearly 200,000 KSM. With 12 active parachains now live on Kusama — including Statemine, which received a free slot via governance — the先行网 has proven to be a robust testing ground for Polkadot’s core innovations: shared security, cross-chain interoperability, and on-chain governance.
The successful projects from Kusama’s first auction wave — Karura, Moonriver, Shiden, Khala Network, and Bifrost — have now been operational for several months. How have they performed? What milestones have they achieved? And what do their progress trajectories suggest for Polkadot’s upcoming auction participants?
Below, we dive deep into each project’s technical advancements, ecosystem growth, and key performance metrics since securing their slots.
Karura: Powering DeFi on Kusama
Karura, Acala’s canary network, was the first project to win a Kusama parachain slot, locking in 501,137 KSM for a lease period from September 3, 2021, to May 19, 2022. As a DeFi hub, Karura offers liquid staking (LKSM), a multi-collateral stablecoin (kUSD), and a decentralized exchange (Karura DEX).
👉 Discover how Karura is shaping the future of cross-chain DeFi.
Since going live, Karura has made significant strides:
- Technical Upgrades: Implemented XCM for cross-chain messaging, upgraded runtime to fix kUSD interest rate issues, launched Liquid Staking Lite, and introduced multi-token incentives.
- Product Milestones: Launched Karura Swap (Kusama’s first DEX), enabled KSM as collateral for kUSD, and became an official payment method for Web3 Foundation grants.
- Ecosystem Expansion: Completed the first XCM “universal message” transfer, integrated Bifrost assets, partnered with Blockdaemon, and enabled PHA/kUSD liquidity mining.
As of October 18, Karura’s total value locked (TVL) exceeded $300 million, with:
- $120 million in DeFi
- $44.28 million in DEX liquidity
- $44.9 million in stablecoin TVL
The network boasts nearly 73,000 accounts, over 1.25 million kUSD in circulation, and around 150,000 KSM bridged to Karura — worth over $53 million.
Moonriver: Ethereum Compatibility Meets Polkadot Innovation
Moonriver, Moonbeam’s companion network on Kusama, secured its slot with 205,935 KSM (lease: September 4, 2021 – May 20, 2022). Designed as an Ethereum-compatible smart contract platform on Substrate, Moonriver enables developers to deploy dApps with minimal friction.
Polkaproject.com ranks Moonriver as the 18th most active project in the Polkadot ecosystem over the past 30 days.
Key achievements include:
- Full deployment of EVM compatibility and native transfer functionality
- Release of five client versions and four operational updates
- Launch of a liquidity acceleration program, allocating 1 million MOVR (10% of initial supply) to boost ecosystem activity
Moonriver has also forged over 20 partnerships, including with Lido, AnySwap, Figment, and DappLooker — spanning NFTs, DAOs, DEXs, and cross-chain bridges.
As of October 18:
- Over 135,000 wallet addresses
- More than 3.07 million on-chain transactions
- Around 1,800 ERC-20 assets created on-chain
- TVL exceeding $98 million (ranked #32 on DeFi Llama)
The network maintains 48 active collator nodes, with 9 pending, and each active node supported by around 100 nominators — a strong indicator of decentralization and network health.
Shiden: Multi-Chain dApp Hub for Kusama
Shiden Network, the canary network of Astar, won its slot with 138,457 KSM (lease: September 5, 2021 – May 21, 2022). Positioned as a multi-chain dApp layer for Kusama, Shiden supports EVM, WebAssembly (WASM), and Layer2 solutions — making it ideal for DeFi, NFTs, and gaming dApps.
Recent developments:
- Upgraded runtime and launched Shibuya testnet
- Transitioned mainnet from PoA to PoS
- Enabled token transfers and cross-chain functionality via XCMP (in collaboration with Kylin Network)
Future plans include:
- Transition to NPoS consensus
- Launch of Ethereum bridge
- Introduction of DApp Staking, allowing developers to earn rewards by deploying smart contracts
Astar has also launched a $30 million Shiden Ecosystem Growth Fund to accelerate development. Strategic partnerships with PolkaEx and Covalent further strengthen its ecosystem.
Khala Network: Privacy-Powered Cloud Computing
Khala Network, Phala Network’s canary chain, secured 132,280 KSM for its slot (lease: September 5, 2021 – May 21, 2022). As a decentralized cloud computing platform, Khala leverages Trusted Execution Environments (TEEs) to deliver privacy-preserving computation for regulated applications.
The network has progressed through four development phases — Triassic, Jurassic, Cretaceous, and now the Holocene era. Key milestones include:
- Removal of Sudo key and launch of council elections
- Activation of Secure Worker Mining (SWM) and token staking
- Launch of a one-way Ethereum-to-Khala PHA bridge
- Full support for cross-chain transfers
Looking ahead:
- Fast-track rollout of the Khala-Ethereum two-way bridge for ERC20 PHA ↔ K-PHA conversion
- Integration of XCMP in PhaSe wallet for cross-chain interoperability
As of October 18:
- 15,052 active SWM workers
- Total staked value in StakePool exceeding 6.795 billion PHA
Bifrost: Unlocking Liquidity for Staked Assets
Bifrost won its slot with 136,817 KSM (lease: September 5, 2021 – May 21, 2022), positioning itself as a leading DeFi infrastructure protocol in the Polkadot ecosystem. Its core innovation is vToken — a liquid derivative for staked assets and parachain slot bonds.
Ranked 4th in development activity on Polkaproject.com over the past month, Bifrost has delivered:
- Launch of vsKSM and vsBond mining
- Governance module activation
- Support for KSM as gas payment
- Removal of Sudo privileges
- Bidirectional asset bridging with Kusama
- Deployment of Swap module and kUSD transfer functionality
Bifrost’s Slot Auction Liquidity Protocol (SALP) has gained wide adoption — already registered by Calamari, Basilisk, Altair, Kintsugi, and Parallel Heiko.
Ecosystem integrations include:
- Cross-chain xToken flow with Acala
- DEX capabilities via Zenlink deployment
- Interoperability with Statemine
Subscan.io reports:
- Over 55,000 holder accounts
- More than 94,000 transactions
👉 Explore how Bifrost is revolutionizing staking liquidity.
Frequently Asked Questions (FAQ)
Q: What is the purpose of a parachain slot auction?
A: Parachain slot auctions allow projects to lease a slot on Polkadot or Kusama to gain access to shared security, cross-chain interoperability, and network resources. Winners are determined by community-backed token contributions.
Q: How does Kusama differ from Polkadot?
A: Kusama is Polkadot’s canary network — a high-risk, fast-moving environment where teams test features before deploying on Polkadot. It serves as a proving ground for governance, auctions, and upgrades.
Q: What are vTokens and why are they important?
A: vTokens (like vsKSM) represent staked assets that remain liquid. They enable users to earn staking rewards while still using their assets in DeFi protocols — solving the capital inefficiency problem in traditional staking.
Q: How does XCM enable cross-chain communication?
A: XCM (Cross-Consensus Message Format) is Polkadot’s standardized messaging system that allows parachains to send instructions and assets across chains securely and trustlessly.
Q: What role do collators play in Moonriver?
A: Collators maintain Moonriver’s state by collecting transactions and producing blocks for the Polkadot validators. A healthy number of collators ensures decentralization and network resilience.
Q: Why is liquid staking important for blockchain ecosystems?
A: Liquid staking unlocks capital trapped in staking by issuing tradable tokens. This enhances capital efficiency and drives deeper DeFi integration — a key driver of growth in networks like Karura and Bifrost.