Bitrue Project Highlights Series #6 — Karura KAR
Today we are happy to announce yet another listing that you should definitely pay attention to if you are looking for your next 100X cryptocurrency.The token that is soon to list this week has the ticker KAR, it is a native utility token of the DeFi blockchain Karura. Ever wonder why the name is so familiar? Karura has made quite a name for itself in the past few months. Chances are, when you visited the web page of Polkadot’s DeFi hub Acala, you might have come across Karura as well. The team behind Karura is also the team working on Acala, a Polkadot parachain that many of you must have heard of. In fact, Acala is the winner of the first ever Polkadot parachain slot auction held in 2021. To those of you already familiar with the Polkadot ecosystem, you might also have heard of Kusama, Polkadot’s canary network, that is often referred to as Polkadot’s wilder cousin. Just as Kusama is a sibling to Polkadot,while Acala is built on Polkadot, Karura is built on Kusama, and is Acala’s sister project.
Just like Acala, Karura is designed to be an all in one DeFi platform that offers features such as lending and borrowing, yield aggregation, and an AMM DEX with minimum gas fees. Karura is a scalable, EVM-compatible network that is created to meet the needs of a growing DeFi ecosystem. Although at the moment Acala is the more famous one of the pair, Karura offers users and developers alike a spicier experience, with new features constantly being added to it, as opposed to the slower evolving cousin Acala. This is because of Karura’s more flexible nature, with the governance voting period being only 7 days using Kusama, while it might take up to 28 days for Acala which is built on Polkadot.
There are many features that you can try out when using Karura, one of them being liquid staking. Liquid staking is a practice unique to DeFi and was first invented by Lido Finance, which allows users to stake their token without sacrificing liquidity. In a nutshell, when users deposit their KSM tokens to the Karura liquidity pool to earn interest, the platform will award these users with a synthetic version of their tokens called the lKSM tokens. The amount of lKSM tokens distributed to the users will be proportional to the amount of KSM they staked. The lKSM tokens can be used to trade, swap, and stake without needing to unstake the original tokens. This allows users to enjoy double the rewards of traditional staking. In addition to that, the platform also offers their own native multi-collateralized stablecoin called the Karura Dollar or kUSD, users can borrow or loan out the kUSD to earn some additional income. You can do all of this while only paying for their “micro” gas fees that can be settled in any token including KAR, KSM, lKSM, BTC or ETH. Aside from the original features that come along with the platform, we must not forget that Karura is also a blockchain on its own, meaning that developers can utilize Karura to create DeFi applications.
The KAR token itself has many more purposes other than only serving as a governance token. KAR will be used as a reward token to incentivize node operators to validate transactions. KAR will also be used for the risk adjusting mechanism by reducing or increasing the interest rates and collateral ratios. Lastly, staking KAR tokens is required to deploy Substrate pallets on the Karura blockchain.
The team behind both Acala and Karura are made up of established individuals including Ruitao Su, Bette Chen and Bryan Chen. Su has over 10 years of experience working on an award winning software development studio, Bette Chen is a serial entrepreneur with involvements in the blockchain industry dating back to 2018. The company page has over eleven thousand followers on LinkedIn, which is a fairly big amount for a relatively new blockchain startup.
The Acala foundation is backed by 27 venture capitalists, notable names include Polychain Capital, Coinbase Ventures, Arrington XRP Capital, and Pantera Capital. The foundation has raised a total of US$69.7 million for the development of both Karura and Acala.
Although at first glance Karura might just be another one of those projects aiming to be the next DeFi hub of web3, what makes Karura stand out from the rest of the pack is its seamless application, and near perfect performance for a DeFi platform launched on a canary network. The low gas fees and multi-chain interoperability are what makes Karura even more attractive. As developers at the Acala Foundation continue to develop more features and launch more exciting partnerships that we have not seen yet, KAR is a small cap cryptocurrency that has yet to show us its full potential. With the listing of KAR coming up this week, you could now buy KAR at a significantly cheap price at Bitrue. By making hidden gems cryptocurrencies be available to trade on our platform, we hope that our Bitruers could fully embrace the experience of being in the early majority of crypto adopters, all the while making massive returns.
The Bitrue Team