Karura: Launches Decentralized Exchange On Polkadot And Kusama

Karura is the Kusama implementation of the Acala protocol. It has recently launched its first-ever decentralized exchange (DEX) platform known as the Karura Swap. On Friday, there was an announcement from the firm saying that its DEX platform is now live and ready for people to use. Also, KSM/KAR is the first trading pair on the exchange platform. According to the information given in the announcement, Karura Swap has been launched and it has an initial lock-up value of more than $3.4 million. It also had more than 1,000 unique liquidity providers (LP). In the announcement, the Karura team also talked about the benefits of its “Bootstrap feature” in the Decentralized Exchange platform. This feature offers a liquidity sandbox for all the trading pairs with a closed platform. This prevents sudden market tempering and front running during the initial launch of trading pairs.

The blog post further added, “With Bootstrap, Karura aims to empower trustless trading at fair market rate to reflect the tenets of equitable and open finance for all.” As a matter of fact, the very first KSM/KAR pair passed the bootstrap phase. It went live on the platform only once the mandated liquidity goal was satisfied. With the launch of this decentralized exchange (DEX) platform, Karura Swap has become the first-ever decentralized exchange on Polkadot and Kusama. It is also the first trustless trading method of Kusama tokens on a DEX. On the Karura Swap DEX, even other trading pairs can make use of this unique bootstrap feature. During this process, the LP can provide one or two tokens to the pool. The transaction will remain suspended until the liquidity target is reached.

More About Karura

Since Karura is designed as a decentralized financial center for Kusam, the team stated that other features such as KUSD stablecoin loans, equity plans, and liquidity mining are still under development. These additional agreements are a part of the 48-week network leased plan. They are secured by winning a position in a parachain auction. Moreover, in June it was announced that Karura is the first winner of a 48-week lease to build on Kusama. It is Polkadot’s pre-production environment and it is also known as its “canary” network.

It has submitted more than 501,000 KSM bids during the collective loan process. Later, these slots for auction will be the main factor to determine which parachains will be added by the team to the Kusama relay chain. It is Polkadot’s partner network. Moreover, there are several other networks apart from Polkadot such as Cosmos and Solana. They are also offering the developers a method so that they can positively avoid higher costs and increased congestion on Ethereum. They have already been there since the explosion in the DeFi market. 

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