Cosmos ecosystem new public chain Kujira: redefining multi-chain decentralized trading platform

Original Title: 《First Impressions: Kujira Blue and FIN》

Original Author: Opa

Original Compilation: TechFlow intern

Recently, Kujira launched Layer1 in the Cosmos ecosystem and burst out of the gate with their first dApp: Blue. Subsequently, the Kujira team introduced FIN, a multi-chain order book trading platform.

Here, I will share my first impressions of these dApps and discuss why they are so important to the ecosystem.

Bridging Multi-Chain Assets

The Kujira team has built an efficient dApp to onboard assets from 17 blockchains across the Cosmos. When you click on IBC/Bridge from Blue's main menu, you can easily bring your local IBC assets from other chains. Fully integrated with the Keplr wallet, a connection request approval window will automatically pop up when you select a chain you haven't interacted with before.

For example, when you choose to transfer SCRT from the Secret Network to Kujira, it will display the amount of liquid tokens you have on that chain, you select the amount, initiate the IBC transfer, approve a small transaction fee in SCRT tokens in Keplr, and bring them over. Then, you can see these tokens in your Keplr Kujira wallet or when you click on the wallet menu option in the blue menu.

Kujira is developing within Cosmos and sourcing native IBC assets from the entire ecosystem for its dApps; moreover, the team has set its sights on inter-chain assets beyond Cosmos. Another option to access the network is to bridge digital assets from five other ecosystems (Ethereum, Avalanche, Polygon, Fantom, Moonbeam) using the Axelar bridge, including axl, synthetic assets, and native tokens.

This is also very useful; I have tested the cross-chain bridge with USDC from Ethereum. But note that the relayer fees charged by Axelar are significantly higher than those of IBC (over $20), and the speed is not as fast.

Focus on Yield

The Kujira team takes pride in the uniqueness of its business model; in other words, staking on Blue is a different experience. While the current APY may not be very high, it could potentially reach +100% in the future. The reason is that the staking rewards for KUJI are not based on inflation but on revenue. When the dApp earns revenue, KUJI stakers receive a portion of that revenue, and not just KUJI tokens! As an investor in KUJI, you will receive rewards in all top tokens that generate revenue on-chain. Seven of these are already activated, and this list will grow as more assets are added.

The Kujira network is protected by an excellent team of 75 validators, including community-focused teams such as:

• Smart Stake
• Danku_Zone with DAIC
• Oni
• PFC
• Crypto Crew
• Lavender Five Nodes
• Imperator

Finally, Blue also includes governance voting, swapping, the ability to migrate KUJI from Terra, and a dashboard.

Spot and Limit Trading

After successfully launching the bridging and staking dApps, Kujira quickly rolled out FIN—a decentralized order book trading platform. Apex assets are increasing at a rapid pace, and I have been actively testing the limit order and market trading features. The initial results are promising, orders are executed as planned, the user interface is easy to use, and the order tracking is impressive.

Every newly added asset goes through a liquidity bootstrapping phase, during which only limit orders can be set. After this initial phase ends, market orders are opened. The trading platform provides trading charts and views of buy orders, sell orders, and recent trades. As of writing this article, the following tokens are in full trading mode: KUJI, USDC, wETH, ATOM, JUNO, OSMO, and EVMOS. SCRT is currently in the liquidity bootstrapping phase.

Trading fees (0.075% for makers and 0.15% for takers) are paid to KUJI makers. Network fees are also charged, and they are very low (only a few cents). By default, fees are paid in KUJI; however, you can change this to pay fees in USDC.

Your limit orders are visible under the open orders tab. Once your limit order is executed, you can see them in the completed tab. From a tracking and recording perspective, I really like this feature. Finally, Kujira also has its own blockchain explorer (Finder), where you can see all your liquid and staked assets, as well as all transactions, just by entering your wallet address.

Impact on the Ecosystem

dApps on the Kujira blockchain can collaborate seamlessly and are very powerful. By choosing to integrate assets from Cosmos from the very beginning, Kujira positions itself as a multi-chain decentralized trading platform for the entire ecosystem. They are combining protocols, dApps, and blockchains to add value to Cosmos. As the weeks progress, I expect Kujira to bring more top assets into FIN. The team is also proving that there are different ways to generate yield. As investors in KUJI, we earn a small portion of all these top assets.

Just the Beginning

Blue and FIN lay the foundation for Kujira, and are introducing one of the most critical protocols: Orca. When the lending market launches in Cosmos, Kujira will be able to attract a fervent user community.

In the near future, thanks to Blue's IBC functionality, assets that successfully execute liquidations will flow effortlessly within the ecosystem. With FIN's spot and limit order features, newly acquired assets from Orca's bidding can be quickly exchanged for stablecoins or other Cosmos assets. The blockchain will charge fees at every step, creating a profitable flywheel, as Kujira was built from the ground up as a revenue-generating enterprise. Most importantly, the fees collected from the blockchain's dApps directly benefit KUJI stakers!

By using the order book trading platform, there is no need to accumulate large amounts of liquidity, nor to deal with the hassles of maintaining an AMM. Kujira also introduces a new value model for stakeholders in the chain, based on generating revenue rather than inflation. Additionally, they can bring the community that has been stranded on the Terra chain into the Kujira chain.

First impressions are often lasting! When I first discovered Kujira and wrote about the innovative technology being developed, I was immediately captivated. Now, eight months later, the Kujira team has evolved and rebooted in Cosmos, which is truly an engineering feat. They are realizing their initial mission of bringing their original supporters along and building a new, stronger community. Mark my words, Kujira is just getting started!