Getting to Know Kujira Network (KUJI), a Gathering Space for Whales

D9An...ps6F

9 Jan 2024

129

Kujira Network was formed to help investors become experts and move towards becoming influential figures in the crypto world.

The project has caught the attention of many crypto and blockchain analysts and observers, but what exactly makes it interesting?

Getting to know Kujira Network

Kujira is a single-layer blockchain that runs on top of Cosmos. The word Kujira is taken from the Japanese word for whale with the aim of helping crypto investors especially in the DeFi sector to turn into whales.

The narrative is the main basis of Kujira where the team behind Kujira has created decentralised applications or DApps that encourage democracy in the DeFi world.

The trick is to create a decentralised app ecosystem that makes it easier for users to generate profits without being significantly affected by market manipulation and direction.

Kujira's Growth Strategy

To achieve these goals, Kujira uses a strategy that is focused on four main components:

Cost Effective Solutions: Setting costs that users can afford.
Comfortable Look and Experience: Ensuring user comfort
Interoperability: Enhance co-operation with multiple blockchains.
Equal Opportunity for Capital Investors: Ensure retail investors get the same opportunities as whales, without being affected by market conditions.

Please note that Kujira has a main use token called KUJI, where one of its uses is for staking as a validator.

Later on, all revenues earned from network operations and most of the profits will be distributed to KUJI stakers.

In addition, Kujira will have several other features in the network and application such as,

Reducing Dependence on Bots: Utilising on-chain settings to minimise bot interference and lower transaction fees, with any excess fees being returned to users.
Easier Smart Contract Creation: Provided through token creation feature for developers.
Governance Features in Smart Contract Issuance: Ensures the need for investor and community buy-in for smart contract launches.

Kujira Ecosystem

In its network ecosystem, Kujira has several projects that have been built with their respective uses to accommodate the needs of crypto investors in each sector.

1. BLUE

The first is BLUE which is useful as the main information place for all user needs or often called a "dashboard". Some of its uses are:

KUJI stakes or swaps
View KUJI-related data
Mint USK, the stablecoin of the Kujira Network
Participate in voting on governance features.
Use bridges to move assets to the Kujira Network from other blockchains.

2. FIN

Second is FIN, a decentralised bursar or DEX with an order book feature, making all transactions visible to users.

This application gets help from another application in the Kujira Network ecosystem called BOW, which will act as a market maker to create liquidity to keep transactions flowing. Some of the main features of FIN are:

Supports ETH, BNB, ATOM, DOT, KUJI, and UST transactions.
Claims no risk of impermanent loss.
Low transaction fees.

3. BOW

Third is BOW, an app that has a similar algorithm to automatic market makers (AMMs), which operates on FIN. Some of the features of the app are:

Provides complete and stable information for the orderbook.
Provides a fair and stable profit allocation to liquidity creators.

4. GHOST

Next up is GHOST a secured lending application, which operates on the Kujira Network. Some of the features in this app are :

A secure ecosystem for high risk preference investors.
Prioritising governance features to increase the number of assets available.
Using the ORCA app as a place to liquidate collateral assets, and offering the assets at a discount of up to 30% to other investors through auctions.

5. ORCA

ORCA, an early product of Kujira, was the first marketplace in the crypto market to act as a liquidation venue for collateral assets. Some of the features in the app are:

Provides a place to get ex-collateralised assets at a discount of up to 30% through auctions.
Access to all assets available in the Cosmos ecosystem.
Experienced asset liquidation services, one of which is for the DeFi project with $20 Billion locked in.

6. POD

Next up is POD which is a platform to manage tokens for staking to any platform in the Cosmos ecosystem. Some of its advantages are:

The feature of connecting any wallet for easy staking.
Token staking management for fund transfer and rebalancing.

7. USK

Kujira also has its own stablecoin called USK which combines the over-collateralisation features of crypto-based stablecoins and the stabilisation of US Dollar-based stablecoins.

The collateral used to safeguard USK is the US Dollar (USD) which is worth a minimum of 166% or almost twice as much as what is circulating in the market.

Currently USK can be used as collateral for crypto transactions such as ATOM, DOT, wBNB, wETH, gPAXG, and LUNA, on some platforms such as GHOST and BLUE.

8. FINDER

Lastly, FINDER is an application to track data on the Kujira network like a blockchain explorer or scanner. Some of its features are:

Transaction search.
Transaction history review.
Wallet marking.
Token ID confirmation for tokens in the Kujira ecosystem.

There are other applications in the Kujira ecosystem that can be seen here.

KUJI Token

Kujira has its own token called KUJI which serves several purposes in the Kujira ecosystem. The four main uses are:

For staking in the Kujira ecosystem for rewards.
Voting on the approval or rejection of network and ecosystem updates.
Network transaction fees.
Trading transactions for investment and speculation.

KUJI is used by 75 validators on the network who ensure the decentralisation of the network is maintained.

The system used is called POD, which is a system to maintain an even distribution of validators on the network. Details on the system can be found here.

Token Economics and KUJI Allocation:

Total Inventory: 122.4 Million KUJI
Number in Circulation: 114 Million KUJI

KUJI Allocation:

Public & Private Sale: 40.1%
Liquidity: 4.9%
Advisory: 6%
Team: 22%
Operational: 9%
Marketing: 7%
Airdrop: 0.4%
Reserve Fund: 6.5%
Rewards: 7%

Unfortunately, there are concerns that 28% of this allocation is controlled by the team and advisors. However, Kujira assures that this is all done for the good of the network and not for market manipulation.

Another concern is the potential for a sharp correction in the six months after all KUJI is available for sale as the lock-up period will be over so investors should take this information into consideration if they want to buy KUJI.

Conclusion

Although it still has disadvantages, Kujia Network has many advantages that can help investors to get more profit in the crypto world, especially DeFi.

This project claims to be sustainable in the long term so it claims to have high potential in the future. Please note that this potential is still full of uncertainty, but looking at the network infrastructure, the Kuji Network is one of the projects that needs to be monitored in the long term.