Right now we can say with certainty that Ethereum is the most widely used blockchain in the world. All the best dApps, as can be seen on sites such as DeFiPulse, run on Ethereum as it has so far been the easiest to use, the most complete and the most popular blockchain. But things are about to change! Now that cryptocurrencies are becoming mainstream, Ethereum often has scalability issues which leads to crazy fees for a simple transaction. Just think about the fact that last month we paid as much as $200-300 for a single swap of ERC20 tokens on Uniswap (the most widely used dApp on Ethereum). In the last days, things seem to have improved, but Ethereum still has too many limitations to have a blockchain monopoly. For these reasons, many secondary blockchains are trying to make their way into this market, offering almost everything that Ethereum offers but with one particular modification: the ability to scale successfully and operate globally with acceptable fees. Among these blockchains are Polkadot and Kusama, two projects on the rise that have recently seen the birth of native DeFi platforms, namely: Acala and Karura! Today we will talk about the latter!
Karura: DeFi on Kusama
Kusama can be considered Polkadot’s sister blockchain, as it was developed by the same people using the same code. However, Kusama is supposed to be faster for the end-user, thus making scaling easier. To attract DeFi users though, Kusama needs a DeFi All-in-One platform like Karura. The latter has been in the works for several months and ended its fundraising just yesterday, 10 June 2021. Karura managed to secure a whopping 200,000 KSM tokens from over 9300 participants (8500 via their website and another 800 addresses from the Kraken exchange), or over $100 million at today’s prices. But what did the participants in this CrowdLoan receive? For every KSM token, participants will receive at least 12 KAR tokens (Karura’s proprietary token) which will be unlocked in 48 weeks (less than 1 year). Those who joined first will also get special bonuses that will allow them to take home more tokens (10% for early birds and 5% for referrals, as explained in this tweet). In short, a successful fundraiser for a super project that has been awaited for several months!
Karura, as can be seen in the preview image at the beginning of our article, is an All-in-One DeFi platform on Kusama that aims to become a competitor to Ethereum and its dApps (Compound, Aave, Curve, Uniswap, MakerDao), offering Swap, Borrow, Lend, Earn and much more with almost non-existent gas fees. Founded by the Acala Foundation, Karura is also EVM-compatible and will use Kusama’s stablecoin in its ecosystem, kUSD. Swap fees can be paid in any token, not only with the proprietary token as happens on the Ethereum blockchain. All these innovations should help make scaling feasible and reach millions of users worldwide.
Kar – the Karura token
Like every serious crypto project, Karura also has its own token: KAR. This token will be released next year to CrowdLoan contributors and will have several uses in the Kusama ecosystem. It can be used to pay micro fees, to become part of Karura’s governance, to deploy smart contracts, to earn money through nodes and much more. In short, a utility token in all respects. The maximum supply will be 100 million units, all unlocked during the token generation event. The token economy is deflationary, so there will often be burns which will reduce the maximum supply of KAR. The distribution is as follows:
- 60.87% for the community that participated in the CrowdLoan
- 18,33% for early backers
- 10,08% for the backers
- 10% for the development team.
In short, a more than fair distribution which makes the token really interesting.