$KUJI, $RUNE, and $INJ are three tokens that have much in common. Used for fee payment, staking, and governance of their respective blockchains, they have performed exceptionally well in the past month. Kujira, THORChain, and Injective are three projects related to the Cosmos ecosystem that, with their peculiarities, aim to dominate the cross-chain decentralized finance sector.
Migrated from Terra after the Luna crash, Kujira is by far the most comprehensive project in the DeFi universe. The suite of tools offered by the protocol allows all users, including those with less investment budgets, to participate in liquidations, arbitrage, staking, airdrop, and more. Kujira is an L1 blockchain in the Cosmos ecosystem, developed with the Cosmos SDK framework and Tendermint consensus (Ignite).
In addition to the IBC protocol, which connects it to all other networks in the ecosystem, Kujira is connected to EVM networks through the Axelar and Gravity bridges. Recently, with the integration of the Nomic bridge, native Bitcoin can also be deposited and withdrawn on Kujira.
Some of the main tools offered by the network are:
- Orca: the very first product launched by Kujira. It allows users to participate in liquidations of assets deposited as collateral. With Orca, users can bid on many tokens including KUJI, LUNA, ATOM, wETH, ARB, choosing the premium percentage at which intend to purchase the asset.
- FIN: a decentralized Exchange with orderbook to place buy and sell orders on a multitude of supported pairs.
- BOW: a liquidity protocol that allows users to participate in liquidity pools to facilitate trades on FIN, in exchange for a portion of the fees from the swaps.
- Ghost: a protocol that allows users to borrow tokens against collateral, i.e., lend assets to the protocol in exchange for interest.
- Manta: DAO that aims to create a decentralized financial system accessible even to novice users. It offers tools to provide liquidity and maximize the efficiency of user’s capital.
- Unstake: instant unstaking protocol that allows users to immediately redeem their captive staking positions, thanks to the infrastructure provided by Kujira and its money market, Ghost.
This is just a part of the many instruments available on Kujira. The ecosystem’s stablecoin, USK, is fully decentralized, has a “soft” peg to the dollar, and is collateralized by a basket of crypto assets, which provides less exposure to individual price fluctuations.
Interest in the project is extremely high, and the appreciation of the $KUJI token is a signal of this. November was particularly profitable for holders of $KUJI, which rose more than 100 percent by breaking through the $4.00 wall. A retracement is in the order of things, but Kujira has the fundamentals to go far.
Last note on the token: $KUJI has an inflation rate of 0.00%. All staking income comes from fees paid by users on FIN and other platforms. Participating in staking not only generates $KUJI but also all other exchangeable tokens on FIN and airdrops promoted by new protocols ($MNTA,$NSTK, and $PLNK are recent examples).
THORChain is a cross-chain protocol dedicated to exchanges between native assets of all supported blockchains and passive return of deposits. The network, thanks to the Tendermint consensus, the Cosmos SDK framework, and the GG20 Threshold Signature Scheme operates as a Layer 1 cross-chain, decentralized and independent.
In short, THORChain allows its users to exchange assets belonging to different blockchains (e.g., BTC on the Bitcoin network with ETH on the Ethereum network), earn money on deposits, and use a token belonging to one network in the form of collateral to borrow one belonging to another ecosystem. All this without the need to wrap tokens, but using only native assets.
The network’s native token, $RUNE, has a deterministic value based on the liquidity deposited in the network, plus a speculative component: as the total value of tokens deposited on THORChain increases, the price of $RUNE goes up. Its use cases are:
- Settlement activity: $RUNE ensures that two native assets can be traded directly with each other;
- Security: being a Proof-of-Stake network, nodes must bond a certain amount of $RUNE to operate. All users can participate in the security of the network and deposit assets by staking their $RUNE, in exchange for rewards.
- Aligned incentives: to ensure the security and liquidity of the network, there must be a balance between $RUNE put in stake and $RUNE deposited into liquidity pools.
- Value and utility: the more trades on THORChain, the higher the fees for liquidity providers. By acquiring more liquidity, the pools can offer trades at better prices, which further helps to increase the volumes and value of the $RUNE token.
Users can then put their assets to good use by depositing them in Savers Vaults, i.e., providing them in liquidity paired with $RUNE (an option subject to impermanent loss).
Another noteworthy section is the one dedicated to loans. Indeed, on THORChain it is possible to obtain loans against 0-interest collateral, with no risk of repayment or liquidation, thanks in part to TOR, THORChain’s stablecoin oracle. These loans can only be repaid in full in any asset, as long as the value of the deposit exceeds the debt.
With these fundamentals, THORChain and its $RUNE token have all the makings of a major player in DeFi. Although it is still far from its all-time high, the token’s value exploded in November gaining more than 100 percent and surpassing $5.00.
The Injective protocol aims to create a truly free and inclusive financial system through the fastest blockchain in the landscape (less than a second to produce a block). The dApps within its ecosystem are interoperable, scalable and decentralized. Implemented in the Cosmos ecosystem, with cross-chain bridges traders can also interact with Ethereum and Polkadot networks.
On Injective, developers can quickly create advanced applications through ready-to-use modules. The main dApps in the ecosystem are:
- Helix: a decentralized exchange equipped with an orderbook and focused on exchanges of crypto assets and derivatives. DEX has an intuitive interface, offers interchain exchanges, and does not charge gas fees.
- Mito: a protocol that provides investors with a series of automated trading vaults powered by smart contracts. The goal of Mito.fi is to democratize access for ordinary users to high-finance instruments.
- Black Panther: a portfolio management protocol that maximizes returns on deposited assets through sophisticated strategies and data-driven models.
- Talis: the first native NFT marketplace on Injective. It hosts major PFP and NFT-fi-related projects.
Being a Proof-of-stake chain, in addition to multiple sophisticated decentralized finance tools, users can stake the native $INJ token to contribute to network security, participate in governance voting, and earn tokens.
Just over a month ago, Injective Nexus, the integration on Google Cloud of Injective blockchain data, was unveiled. Now Google Cloud clients can leverage this data for multiple uses, such as creating institutional trading strategies, machine learning, and creating new applications.
Thanks to the success of its DeFi dApps, in the past month the value of the $INJ token has returned above $14, growing more than 900% in the past year. Considering that its all-time high is $25 (April 30, 2021), we can say that $INJ is one of the best-performing tokens in 2023.
| This is not financial advice. Do your own research before investing. |
This post was previously published here.
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