Kujira has re-emerged from the ashes of Terra and successfully launched its new blockchain. After the network crash where Kujira was born, many loyal users, like me, feared for this promising protocol’s future. Thanks to an extraordinary team, the project was one of the first among those migrated from Terra to restart, managing to launch the new chain in just six weeks. In this article, I will try to introduce you to the new Kujira and its tools, which are rapidly making their way into the Cosmos ecosystem.
It has been over four months since I first wrote about Kujira Protocol, a project created to foster and protect small investors from so-called whales and bear market periods. Everyone deserves to succeed in decentralized finance, and it’s with the intent of leveling the playing field that the team has released, first on Terra and now on Kujira blockchain, a suite of tools that support the average crypto-user.
Migration to the new chain was quick and painless: since the Kujira and Terra networks are both implemented with the Cosmos SDK technology and Tendermint consensus, long-time users only needed to go to the Kujira Blue app and, through the Migrate section, connect their Terra Station contextually to the Keplr wallet and make the claim.
Within seconds, the $KUJIs due will be deposited on our Keplr’s Kujira address. That said, let’s review the tools and features of the reborn Kujira.
BLUE
The pillars on which the protocol rests are three: Blue, Fin, and Orca. Blue is what we might call Kujira’s main tool. We have already mentioned that through this dApp users were able to receive their $KUJIs based on the snapshot taken on Terra, but there is much more: from here we will be able to vote on governance proposals, stake KUJIs, make transfers via IBC or by taking advantage of the internal bridge, make exchanges and monitor our wallet.
Staking has an extremely low APR, we travel around 0.5 percent, this is to keep inflation at 0, and rewards come from transaction fees paid by users to interact with Kujira dApps. Note that by staking KUJIs, in addition to the KUJIs themselves, we will also be able to earn USDC, EVMOS, ATOM, JUNO, wETH, LUNA, OSMO, and SCRT (the list could get longer). An almost unique feature in the Cosmos universe.
Through our wallet, we will have the opportunity to experience another innovative feature of Kujira, namely the ability to send tokens to multiple addresses at once and possibly even set a vesting period for the withdrawal of those tokens. Think of the possible applications, for example, for companies that need to pay salaries to employees or for projects that want to promote giveaways or airdrops.
In addition, thanks to the support of Axelar, a network dedicated to cross-chain applications, the internal bridge enables the transfer of axlUSDC (the network’s USDCs also used by Kujira) and other tokens to and from Ethereum, Fantom, Moonbeam, Polygon, and Avalanche. The bridge function to date is vital to the operation of the other two pillars of the protocol.
ORCA
Orca is the dApp dedicated to liquidations, through which users can purchase assets at discounted prices. In crypto protocols that allow borrowing in exchange for collateral, a market develops that allows the most efficient bots and the wealthiest investors to purchase the unredeemed collateral at extremely low prices.
Kujira was created precisely to counter these practices, which are in complete contrast to the spirit of decentralization, and to do so it created ORCA, an application that allows users to set purchase orders for given collateral and the discount rate (Premium) at which they would like to purchase it.
This mechanism also avoids possible cascading liquidations by whales, who often sell liquidated assets soon after acquiring them resulting in a collapse in price. In addition, because of the tens of thousands of users who have access to the system, assets will likely not be liquidated at excessively high discount rates.
For this system to work, as was the case with Anchor Protocol on Terra, the protocol will have to draw from networks that offer loan services against collaterals. The first liquidation market to contract with Kujira after Anchor is Karura Network, Kusama’s Hub DeFi, parachain of Polkadot.
To buy DOT at discounted prices you will need aUSD, the over-collateralized stablecoin of the Polkadot ecosystem. All fees generated by the platform will be redistributed to KUJI stakers. ORCA should be up and running any day now, so get ready.
FIN
FIN is finally Kujira’s decentralized, permissionless DEX. The main feature is that it has an orderbook i.e., like the major CEXs around, it allows both limit orders (i.e., at the desired price) and market orders (i.e., at the current market price) to be placed. In the future, margin orders will also be enabled, allowing leverage of up to 10x.
If you are unfamiliar with placing buy and sell limit orders, I refer you to this timely guide put together by the team. To make purchases, as I mentioned earlier, we will need axlUSDCs, which you can bridging on Blue from the different networks (you can find the steps in detail in the linked guide).
Commissions on FIN are significantly lower than on most exchanges, and stand at 0.075% for maker fees (when the order is not immediately filled and thus remains in the orderbook in the form of liquidity), and 0.15% for taker fees (when the order is immediately filled due to another order already in the orderbook). Also as far as FIN is concerned, the fees paid for trades are all systematically paid to KUJI’s stakers.
Future developments
It is undeniable that functions such as sending tokens to multiple addresses, the possibility of earning different assets belonging to the ecosystem from staking, the absence of inflation in token issuance, the provision of a DEX orderbook, with Margin function, and the possibility of buying assets at discounted prices make Kujira a unique protocol.
Having it on Cosmos, now more than yesterday is in my humble opinion a great value-add, and the achievement of one million in trading volume in the first seven days since the launch of FIN is proof of that.
Thanks to the already announced integration of Kado and Local Money, it will soon be possible to trade on FIN by directly depositing our fiat currencies on Kujira, bypassing the complexity (at least for some) of the bridge. We can also expect a major expansion of ORCA, which will start with Polkadot but will soon expand to new networks hosting lending protocols. We are also looking forward to the launch of Kujira’s native wallet, which will surely aim to facilitate operations on the protocol.
The rebirth of Kujira on its own blockchain has just begun, and the team seems to be intent on taking the project very far. Future collaborations with other IBC projects to bring new assets to the network will certainly not be missed (will we see Nomic’s nBTC on FIN sooner or later?). All cosmonauts deserve to become a whale, and Kujira has the right tools to make it happen.
Previous article on Kujira:
https://www.loop.markets/kujira-protocol-review-the-best-anti-whale-product-suite/
Sources:
https://medium.com/team-kujira
I originally posted this article here.
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