- Trading is now live on Karura Swap.
- Karura Swap is the first decentralized exchange on the Kusama and Polkadot ecosystem.
Acala Network announces the launch of Karura Swap, the first-ever decentralized exchange on the Kusama and Polkadot ecosystem. More so, they revealed the first trustless trading pair which is KSM/KAR with over $3.4 million in Total Value Locked.
Karura is the DeFi hub of Kusama – Acala Network. Whereas, Acala is the all-in-one DeFi hub of Polkadot. Of note, it is an Ethereum-compatible platform for financial applications to use smart contracts.
According to their official announcement, its current Total Value Locked is thanks to Karura Swap’s ‘Bootstrap’ mechanism. Wherein, one novel feature of Karura Swap is the ability to launch a trading pair in Bootstrap mode. This is a brief warm-up period that encourages a pool to achieve adequate liquidity while working, to prevent frontrunning and market manipulation.
Clearly, this is the first time KSM has been traded trustlessly on a decentralized exchange. On Karura, any given trading pair can be launched in the optional Bootstrap mode. It invites users to secure a share of the pool and provide liquidity via one token, or with both tokens in the trading pair.
Furthermore, the announcement explained that transaction fees on Karura can now be paid in KSM thanks to the Bring Your Own Gas feature and the liquidity of the KSM/KAR pair.
Thus, users may now put their KSM to work and swap trustlessly. With that said, they can now prepare for the fast-approaching kUSD stablecoin loans, LKSM liquid staking, and liquidity missing programs. A Twitter user even shared that it just took him 5 seconds to send KSM to Karura.
— Cryⓟtor 🅰️⚪️🕊 ₑₓₚₑcₜ cₕₐₒₛ (@Cryptor_io) July 14, 2021
Last month, it can be recalled that Karura won the first parachain slot on Kusama with over 500,001 KSM contributed to its community-backed crowd loan. With the 48-week network lease secured, the team also shared its strategic launch roadmap.