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About Karura
- Karura is a decentralized finance (DeFi) hub and stablecoin platform built on Kusama (KSM) and integrated into Polkadot (DOT).
- Founded by the Acala Network, which has won four Web3 Foundation grants and founded the Substrate Developer Academy.
- Backed by multiple funds, including Coinbase Ventures, Pantera Capital, Polychain Capital, and Hypersphere.
Key Features
- Multi-collateralized stablecoin backed by cross-chain assets (kUSD)
- Trustless staking derivative (liquid KSM)
- Automated market maker
About Karura Network
Karura (KAR): A Comprehensive Overview
Karura is a comprehensive, decentralized finance (DeFi) hub and stablecoin platform, meticulously crafted on Kusama (KSM) and seamlessly integrated into Polkadot (DOT). Born from the visionary minds at Acala Network, a trailblazing entity that has garnered four prestigious Web3 Foundation grants and founded the esteemed Substrate Developer Academy.
Delve deeper into the intricacies of Karura by exploring our comprehensive project overview.
Notably, both Karura and Acala have secured backing from a multitude of esteemed funds, including Coinbase Ventures, Pantera Capital, Polychain Capital, and Hypersphere. Operating in tandem, Karura and Acala are parallel entities. Specifically, Karura is replicating DeFi on Kusama, mirroring Acala’s efforts in offering DeFi on Polkadot. The network is constructed with a codebase nearly identical to Acala’s, thereby providing scalable, convenient, and rapid DeFi cross-chain ecosystems for both Kusama and Polkadot.
Parachain Karura is a cutting-edge platform that empowers users to craft sophisticated, cost-effective, and intricate financial applications, thereby streamlining time-consuming processes and significantly enhancing trading efficiency.
The platform itself furnishes a multifaceted, multi-collateralized stablecoin, kUSD, backed by a diverse array of cross-chain assets. Additionally, it offers a trustless staking derivative, liquid KSM, and an automated market maker (AMM) decentralized exchange (DEX), thereby unlocking liquidity and fostering a fertile ground for financial innovation.
Karura is the decentralized financial nexus of Kusama, a scalable, multi-chain network fostering radical innovation and early-stage Polkadot deployments. As the sister network to Acala, Karura hosts a plethora of cutting-edge protocols, including multichain liquid staking tokens (such as liquid KSM – LKSM), an automated market maker (AMM) decentralized exchange, and a highly customizable, EVM-compatible app platform built upon Substrate. Secured by Kusama, Karura serves as the liquidity gateway for Kusama parachains, Acala, and L1/L2 blockchains, facilitating seamless interactions and transactions.
The Visionary Founders Behind Karura
Karura was founded by the visionary trio behind the Acala Network: Ruitao Su, Bette Chen, and Bryan Chen, a team of innovators who have successfully merged their expertise to bring this groundbreaking project to life.
Ruitao Su, a visionary entrepreneur and award-winning software engineer, is the co-founder of Acala and currently helms Laminar Protocol as its CEO. His illustrious career has seen him hold the position of CTO at Centrality, in addition to being a sought-after investor and advisor to numerous tech companies and startups.
Bette Chen is a visionary co-founder of Acala Network and a seasoned COO at Laminar, boasting a unique blend of technical and business acumen. As a seasoned product manager and entrepreneur, Chen leverages her academic background in software engineering and business administration (MBA) to drive innovation. With a decade of experience in managing products within the software and high-tech industries, Chen has established herself as a stalwart in her field.
Bryan Chen, a distinguished co-founder of Acala Network, also assumes the roles of co-founder and Chief Technology Officer at Laminar. Notably, Chen is a significant contributor to the Substrate codebase and has been appointed as a Polkadot Ambassador.
Karura (KAR): A Beacon of Uniqueness in the Cryptocurrency Realm
Through an exclusive partnership, the Acala team’s cutting-edge developments and technological advancements will be seamlessly integrated into Karura, ensuring that its users are always at the forefront of DeFi innovation, ahead of other Polkadot platforms.
Karura introduces a stablecoin, Karura Dollar (kUSD), which is pegged 1:1 to the value of the U.S. dollar, thereby eliminating the need to transfer KSM tokens to Binance, as users can seamlessly swap KSM for a stablecoin or other assets, such as Bitcoin, with confidence.
Karura also offers a liquidity protocol for KSM tokens, providing an alternative for those who prefer not to participate in auctions yet still wish to earn staking rewards. However, users must wait a seven-day period to unfreeze their tokens. By leveraging the liquidity protocol, users can swap KSM for LKSM, a token that incorporates the annual percentage yield and, most notably, renders the staking process liquid.
Karura boasts a versatile wallet that accommodates a diverse range of coins. Furthermore, the platform seamlessly integrates non-fungible tokens (NFTs), incorporates bridges (renBTC, polkaBTC), and offers borrowing capabilities, all while leveraging various oracles.
One of the primary benefits Karura provides is the capability to execute hundreds of DeFi strategies seamlessly within the platform. Users can leverage cross-chain tokens, such as BTC or ETH, to initiate a self-service loan in kUSD. Additionally, they can generate fees by providing liquidity to the Karura DEX. Moreover, users will receive rewards and benefits by maintaining liquidity while staking, courtesy of an unlocked and liquid KSM staking derivative.
In summary, the Karura DeFi Hub on Kusama presents a comprehensive suite of features, including liquid KSM (LKSM) staking, a decentralized exchange, an algorithmic stablecoin, and a fixed supply of KAR tokens.
Karura (KAR) Coin Circulation: A Quantitative Breakdown
Karura is a bespoke blockchain platform, meticulously designed to cater to the burgeoning DeFi ecosystem. It is fueled by KAR, a utility token boasting a capped supply of 100,000,000, with its value underpinned by a reserved allocation of ACA tokens.
The total supply is allocated as follows: 60.87% is designated for the community, 10% for the founding team, 10.08% for the backers, and 18.33% for the early backers. The community allocation is further subdivided into the following categories: 34% for the auction reward and liquidity program, 10.25% for the reward reserve, 5% for ecosystem development, and 11.62% for the treasury and reserve.
Successful bidders in the parachain auction will be incentivized with KAR tokens, with 30% of the allocation becoming immediately available and transferable upon receipt, while the remaining 70% will be incrementally released over a 48-week period.
The KAR token underpins a diverse range of six distinct applications: facilitating transaction fees, incentivizing node operators, governing the network, dynamically adjusting algorithmic risk, deploying pallets, and deploying smart contracts.
The Security Architecture of the Karura Network: A Robust Framework
Karura eschews smart contracts, instead leveraging the robust security afforded by the Ethereum Virtual Machine (EVM). Furthermore, by deploying on Kusama, Karura benefits from seamless access to Kusama’s modular, plug-and-play security framework.
Where to Acquire Karura (KAR): A Comprehensive Guide
As of June 2021, the KAR token remains inaccessible for trading on all cryptocurrency exchanges. Nevertheless, users can explore Karura’s decentralized applications (DApps) on the Mandala testnet, experiencing the platform’s capabilities firsthand.
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Associated Resources:
Delve into the innovative realms of Kusama and Polkadot, two pioneering projects revolutionizing the decentralized landscape.
Delve into the intricacies of the Karura ecosystem.
Discover Acala: Unveiling the Power of Polkadot Parachains with CMC Alexandria.
Delve into the realm of Decentralized Finance.