- Kusama’s all-in-one DeFi hub Karura has voted to allow minting of the kUSD.
- Karura is also offering Bootstrap modes for launching new trading pairs.
- The network will also be introducing the liquidity provider rewards program.
Kusama’s all-in-one DeFi hub Karura has just passed a vote to enable a network upgrade allowing minting of the Karura Dollar (kUSD). This will also enable the KSM/kUSD pair on Karura Swap as well as the liquidity provider KAR rewards program.
Founded by the Acala Foundation, the DeFi hub is on schedule for launching many important updates. The Karura Dollar is being launched at a time when price-stable currencies to streamline mass adoption of DeFi are in high demand. kUSD is a decentralized, multi-collateralized stablecoin that is backed by cross-chain assets. The currency is pegged to the U.S dollar and is set to become the de facto stablecoin for Karura and Kusama.
With it, users can create a vault in kUSD by locking valuable cross-chain crypto assets and use KSM as collateral as well. Head over to the Karura Apps to begin minting: https://apps.karura.network/portfolio
Along with this, Karura Swap is offering unique new features to engage users. For instance, it offers the ability to launch a trading pair in “Bootstrap” mode, which is a brief warm-up period that encourages a pool to achieve enough liquidity. This way, it empowers trustless trading at a fair market rate.
In fact, the bootstrap for the first stablecoin pair, KSM/kUSD, is now live. Using it, LPs will contribute liquidity to achieve liquidity goals as well as allow time to the market to determine an accurate exchange rate. Details of this are available here.
One of the most important new additions made to the network is the upgrade that includes the liquidity provider rewards program. This will ensure that better liquidity leading to a better trading experience and more trading fee rewards for LPs is offered to users. In turn, this will result in better liquidity within the Karura network in terms of better stability support for the Karura Dollar (kUSD), more stablecoin minting, and more surplus share for kUSD LPs.
Before this, Karura enabled several other features such as the KSM/KAR pair on Karura Swap and liquidity providing (LP) for the KSM/KAR pair. Users can now also use Karura Apps to transfer KSM cross-chain from Kursama to Karura to use within Karura’s DeFi hub.
As per their last reported stats for the network, the network has locked in a total value of $7.123M with just 1 pair being enabled prior to today’s kUSD launch. Other than this, their daily active users have reached up to 532.
Taking into account all these exciting new updates, interested users need to keep an eye out for what’s coming next in Karura’s launch.
Some upcoming milestones are listed below:
- Liquidity provider rewards via LP token staking will be enabled for KSM/kUSD after the pair’s Bootstrap period ends.
- Karura is also bringing Liquid KSM to market very soon. LKSM Lite, the initial beta version of LKSM, is being developed and launching soon.
- Karura is also finalizing its first BTC and ETH bridges. These will bring highly liquid wrapped assets to Karura to be used as collateral and in trading pairs.