What Is the Kira Network?

The Kira Network is the newest decentralized finance (DeFi) liquidity solution that provides simultaneous access to staking and trading on one platform. Powered by its new Multi-Bonded Proof of Stake consensus mechanism, the Kira Network enables users to stake any sort of digital asset in a secure and decentralized way.

There are numerous DeFi solutions that similarly seek to solve the liquidity issue, so what makes the Kira Network special? In this article, we will dissect the project for a better understanding. Moreover, we will also showcase the features that make it beneficial to adopt the Kira Network for your trading and staking purposes.

How does Kira Network work?

Introduced in 2020, the new DeFi-focused protocol arrived as a solution for providing a fully decentralized ecosystem for liquidity providers. The Kira Network’s goal is to provide a market for innovative new tokens that struggle to maintain liquidity, scale, or stay secure. By solving these problems, Kira offers a one-stop-shop where users can provide liquidity in the form of stablecoins, digital fiat, cryptocurrencies, and non-fungible tokens (NFT).

So how does Kira achieve this? Basically, the protocol utilizes individuals who act as the network’s validators, producing blocks containing transactions just as in any other blockchain network. The network is based on the Tendemint byzantine fault-tolerant consensus system, one of the core contributors to the Cosmos Protocol.  By doing so, Kira makes sure that no centralized entity or the developer steam has any administrative control over the network.

For security, the project utilizes a different consensus system called Multi-Bonded Proof of Stake (MBPoS). By adopting this new kind of model, the protocol ensures that users can stake any kind of digital asset at any amount possible. Compared to other PoS networks, it has no limitations in the number and type of liquidity that users can provide.

A decentralized liquidity ecosystem is provided as Kira offers users to stake cryptocurrencies, stablecoins, NFTs, and even real-world assets. Users stake derivatives for better security, receiving in return the ability to use any deployed dApps outside of the Kira Network.

The project already launched its first dApp on the network called the Interchain Exchange Protocol (IXP). With it, liquidity providers have access to not only dApps inside the Kira Network but outside it as well. Practically, users can utilize the entirety of the DeFi market from just one single point. The IXP dApp utilizes the order book sharding feature, which allows it to offer an unlimited number of token pairs in a completely decentralized way.

The Kira Network also has a unique governance system that helps economic actors strive to and achieve similar goals. These actors act in a sandbox-style system where they can steer the protocol in any direction they want. At the very start, the Kira Network only insists on two basic rules: only whitelisted participants can execute on-chain actions and they can only execute the actions for which they have permission. Besides those primary points, governance participants can turn the project into anything that they want, ensuring a completely decentralized experience. 

What are the benefits of using Kira Network?

Now that we know what the Kira Network is and how it works, it is time to delve further into the benefits of the protocol itself. We have already mentioned some of them, but it is time to showcase them in a manner that presents you with the ways of how you might benefit from adopting the Kira Network.

First things first, the main attribute behind the Kira Network is that it is completely decentralized. In previously popular DeFi projects, we had the chance to see liquidity providers struggle with protocols that are, in some cases, almost completely centralized. There are more than a few cases where developers attracted liquidity only to sell their developer funds or to completely ‘rug pull’ their project. If you actively participate in the DeFi sector, there is no need to specifically mention the projects as you already know them.

On the Kira Network, there is no possibility for that to happen. The groundworks of this protocol are designed so that you, the user, have full control over the protocol. Neither the Kira Core JSC has control over the network nor any other centralized entity. As we have previously explored, the governance model does not provide anyone with administrator privileges. Only whitelisted participants have access to specific functions that safeguard the stability and safety of the Kira Network. Therefore, the governance model provides a fully trustless and decentralized environment where users decide how the protocol works.

As for financial incentives to join the Kira Network, the protocol offers the Kira Token (KEX). It is the native staking asset of the protocol, which acts as a reserve currency from which all foreign tokens derive their value. To participate in the governance model, users require the KEX token to vote and issue proposals. Additionally, the token also acts as a native utility token which users can utilize to pay for network fees.

Essentially, users are motivated to hold KEX tokens as the Kira Network charges the lowest rates for network fees and exchange fees when paid in KEX. Delegators are incentivized to hold KEX as the token provides the most optimal rewards. Additionally, 99% of block rewards are distributed via the native token.

Final Word

The Kira Network is a brand new DeFi ecosystem where liquidity providers can stake all sorts of digital assets and interact with the rest of the market at just one place. In this article, we presented an overview of the project and how it works. As you may see, the main attribute behind the Kira Network is that it offers a completely decentralized ecosystem where users hold all the power.

Interested? Find out more by visiting the official website and discover the amazing things that the Kira Network brings to liquidity providers.