What is Karura (KAR)?
The Acala Foundation created Karura in September 2019 to be a decentralized financial center (DeFi) hub and stablecoin platform for the Kusama network. Karura is intended to operate in Kusama as a parachain.
If you don't know, parachains are custom blockchains that power the main blockchain and the heart of the Kusama network, called the Relay Chain.
The relay chain is responsible for Kusama's shared security, consensus and transaction agreements. By being integrated into the relay chain, the parachains benefit from the basic features of the relay chain.
The team chose to launch Karura (KAR) in Kusama to provide DeFi products to their community and is also launching the platform Acala, a similar hub for Polkadot, at the end of 2021.
The Acala Foundation created Karura in September 2019 to be a decentralized financial center (DeFi) and stagnation platform for the Kusama network. Karura is intended to operate in Kusama as a parachain.
Karura Network Project
Karura was designed to operate as a DeFi hub in Kusama, with the intention of allowing developers to create financial apps for their users.
Karura is expected to host several different roles on its platform:
- Crypto Collateralized Stablecoins — Users can staking KSM to earn Karura Dollars (kUSD), which maintains a stable value of 1:1 with the US dollar.
- Decentralized Exchange — An automated market maker exchange (AMM) that works similarly to Uniswap, Balancer or Curve.
- Liquid Stacking — Users can staking KSM on Karura and receive LKSM tokens using encryption staking on other trades or investment opportunities.
EVM Compatible Blockchain — Allows decentralized Ethereum applications (dApps) to run on Karura.
Kanura KAR Price
Launch and Issue of Karura KAR
Currently, it is estimated that only 100 projects can be built on the Kusama network and leverage the security of its relay chain by accessing what Kusama calls a parachain slot.
This number is flexible and is subject to change by governance vote from time to time.
Access to Kusama parachain slots is provided to projects for fixed periods of 6 to 48 weeks, with each project having to pass an auction to gain access to one of the 100 slots. In any auction, teams can bid on up to 8 slots within 6 weeks.
During a parachain auction, Kusama holders can link their KSM in support of the project they believe should receive a parachain slot.
At the end of a certain period of time, the project with the most KSM committed to their campaign usually gains access to a parachain slot, allowing them to operate as a parachain on the Kusama network for a period of 6 to 48 weeks.
Karura's team will crowdsource support for your parachain auction bid by accepting community contributions. If Karura wins an auction, supporters must receive Karura KAR tokens.
Importantly, if Karura fails to win a parachain spot, the KSM committed to your offer by community participants can be returned at the end of Karura's auction campaign.
If Karura wins an auction, the linked KSM will be returned to participants when Karura's access to the parachain space expires.
Karura Monetary Policy KAR
KAR is expected to be air-launched to those who linked KSM to the project during the parachain auction in what they are calling a “paradrop.”
The general supply and distribution of KAR tokens, as well as the details of the paradrop, cannot be known with certainty and are subject to change.
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