$KUJI, the native token of the Kujira Network, is up nearly 3.5x in just the past month.
Some have placed the token in a basket of altcoins including $RNDR, $INJ, and others that recently outperformed and may continue to do so should a new bull market begin.
In this edition, we’ll be briefing you on some background knowledge on $KUJI and the Kujira ecosystem, to help you gain some insight into the project behind the pump.
Stay sharp in the markets ⬇
News:
- SEC Struggles to Recruit Crypto Experts: The agency faces challenges hiring due to conflicts with candidates' crypto holdings.
- Kraken Eyes Layer 2 Expansion: The exchange is in talks with leading blockchain firms to develop its own network.
- Hong Kong Considers Crypto ETFs for Retail: The SFC of Hong Kong is open to allowing retail investors to trade spot crypto ETFs, marking a significant policy shift.
Project Updates:
- Arbitrum's Staking Proposal Passes Vote: Arbitrum's community approves a proposal for ARB token staking with yield funded by the treasury.
- Aave Temporarily Halts Operations: The decentralized finance protocol Aave suspends some activities due to a reported issue but assures no user funds are at risk.
- Ava Labs Reduces Workforce by 12%: The Avalanche blockchain developer aims to refocus resources for growth.
- Rage Trade Launches V2 Aggregator: A new platform for simplified, cross-chain perpetual trading is introduced.
- Notional Finance Rolls Out V3 on Arbitrum: The update introduces variable rates and leveraged yield strategies for DeFi users.
Background on Kujira
Kujira is a decentralized ecosystem for protocols and developers seeking to build applications that offer a sustainable, real yield.
The platform is a a decentralized sovereign layer 1 ecosystem, built with the Cosmos SDK.
The protocol’s vision aims to provide equal opportunities to every DeFi user.
Under this premise, Kujira enables innovative use cases that allow retail investors to go beyond the traditional use cases of blockchain technology, such as asset exchanges, Staking, ICOs…
This is achieved by building tools that provide easy and cost-effective access for market participants, ranging from seasoned professional traders to novice retail investors.
Its value proposition is derived from FinTech solutions and financial instruments that seek to revolutionize the current payment infrastructure.
They hope to do this with innovative and revenue-generating products that provide equal opportunities for all market participants regardless of their investment skillset.
Origin Story
The story of Kujira began in May 2021, after a liquidation cascade on Anchor caused a massive drop in the price of Terra LUNA, from $16 to $4 in just one week.
A minority of sophisticated market participants were able to acquire the liquidated assets at a significant discount.
As a response to the market weaknesses and immaturity of the ecosystem going through this systemic crisis, the Kujira team started building a platform for decentralized liquidations.
$KUJI Tokenomics & Vesting
KUJI is the native token on the Kujira Network.
KUJI is not an inflationary asset.; instead, it relies on the adoption of its dApp and products to generate fees.
This model ensures that KUJI stakers are rewarded from Protocol Revenue instead of from inflationary rewards.
The Total supply was reduced from the original 150M tokens to 122.4M tokens through a governance vote on January 18, 2022, which resulted in the burning of liquidity pool rewards.
KUJI drives its utility from being used as the token to pay network and dApp fees, all of which are distributed to KUJI stakers.
Another utility of KUJI is that by Staking it, KUJI can be used in governance to help shape the future of the network.
$KUJI’s TGE occurred in November 2021, with the following token allocations:
Private Sale -27.975M & 12 months vesting
Public Sale - 21M & 6 months vesting
Liquidity - 6M
Advisors - 7.5M & 12 months vesting
Team - 27M & 24 months vesting
Operational - 11.025M & 24 months vesting
Marketing - 6M & 24 months vesting
Airdrops 500K * Adjusted after burn
Treasury - 6.75M & 24 months vesting
Rewards - 8.648M * Adjusted after burn
On November 9th, the $KUJI release schedule will actually conclude and all tokens will be fully vested.
$USK
USK is an over-collateralized Cosmos stablecoin that is soft-pegged to the value of 1 USD.
USK can be minted by depositing collateral on Kujira
It is recommended that users maintain a low loan-to-value (LTV) ratio in order to avoid the risk of liquidation
In the event of a liquidation, the collateral is put up for auction on ORCA
Users can bind on the collateral assets backing the stable value of USK in order to protect its collateral and get collateral assets at a discount.
Kujira Ecosystem
The Kujira dApps ecosystem consists of the following:
ORCA
ORCA is the first public marketplace to have ever been built to allow users to place bids on liquidated collateral.
This is achieved by a Dutch auction where users can obtain liquidated collateral at up to a 30% discount.
FIN
FIN is Cosmos’ first decentralized and permissionless fair matching Order Book exchange.
The product allows for trading assets on different blockchains as well.
It provides a fully decentralized trading experience that removes the risk of imminent loss and does not require inflationary incentives to subsidize those losses.
Features include improved trade execution, no reliance on inflationary incentives, scalability, low fees, and future on/off ramps.
BOW
BOW is the market-making framework that ensures optimal trading conditions for assets supported on FIN, Kujira’s on-chain orderbook.
The goal is to attract liquidity to the ecosystem by offering deep liquidity for all trading pairs.
BLUE
BLUE is known as the hub of the Kujira protocol.
BLUE is the go-to place for all things related to the Kujira ecosystem, such as KUJI Staking, governance voting, KUJI swapping, Kujira network bridging, rewards claiming, analytic dashboards…
GHOST
GHOST is Kujira’s Money Market.
The tool works in concert with FIN, BOW, ORCA, USK, and BLUE to make leverage an option for all community members.
GHOST sets the groundwork for higher ORCA volumes, FIN Perpetuals (as well as FX trading), FIN margin trading (both long and short), and bootstrapping BOW and FIN liquidity.
PILOT
PILOT serves as a launchpad, enabling tokens to be launched in a far and equitable manner.
Token launches include customizable mechanisms for launchers.
FINDER
FINDER is the blockchain explorer for the Kujira Network.
Like any blockchain explorer, it can be used to find past and present information around transactions, contract IDs, wallets, etc.
Important Links
Become a Premium member to unlock all our research & reports including access to our members-only discord server
Join thousands of sharp crypto investors & traders by becoming a Premium Member & gain an edge in the markets. For just $33.25/month you’ll get:
Premium access to the entire Revelo Intel platform
*NEW* Raise Alpha- Weekly reports on interesting project raises
*NEW* Sector Overviews - 90 day Reports with data and insights on key sectors
Launch Alpha - Weekly report highlighting new projects
The Trace - Real-time onchain alerts for smart money movements
Airdrop Guides - Reports on airdrop opportunities
Members Only Discord server
Analyst Insights reports - actionable trade ideas
Project Snapshots - Monthly protocol-specific performance reports
Project Breakdowns & Timelines - Deep dive 50+ page protocol-specific reports
Notes - Summaries of your favorite podcasts & AMAs