What is Karura (KAR)?
Karura is a decentralized finance (DeFi) hub of the Kusama chain – a scalable network of specialized blockchains built using nearly the same codebase as Polkadot. Karura allows users to access DeFi products at low gas fees payable in any token. The protocol is EVM-compatible, meaning users can seamlessly access Ethereum-based projects.
Karura’s salient feature is its micro gas fees. The protocol settles transactions at a fraction of the fees charged by other networks, adding value to users who adopt its DeFi services. This low fee is enabled by Kusama's weight-based fee mechanism, which charges in slight increments for increased transaction complexity.
Karura features a decentralized staking platform called Karura Liquid Staking, a stablecoin backed by assets across various chains, and an AMM-based decentralized exchange (DEX). These apps leverage Kusama’s technology to offer token swaps, borrowing, lending, staking, and many more services with micro gas fees.
Karura integrates the EVM to secure its protocol. In addition, its underlying Kusama chain provides a plug-and-play security mechanism. So, users can rest assured that their assets are stored securely on the DeFi hub.
The protocol also has a native token – KAR, which is a multifunctional token that powers operations on Karura. Take a look at the Karura price chart above to view the real-time KAR price.
Besides, you can pay the very-low fees using a token of your choice. All these functions are geared to empower Karura users to improve their trading efficiency. The protocol provides access to affordable, convenient, and secure financial services.
In addition to its native KAR token, Karura issues a multi-collateralized stablecoin known as kUSD. The cross-chain asset backing ensures that kUSD retains its USD-pegged value despite volatile market conditions.
Use Cases of KAR
KAR is Karura’s utility token with five core functions:
- Transaction fees. Karura users can settle the infinitesimal gas fees using KAR tokens. Also, KAR is applied to smart contract execution.
- Node incentivization. Nodes that secure the protocol by monitoring and relaying messages to Kusama get KAR crypto as a reward.
- Governance. KAR holders can vote on proposals to elect members and advance the network’s development.
- Algorithmic Risk Adjustment. KAR is applied to automatically adjust risk parameters in DeFi service, like interest rates and collateral ratio. The collateral ratio is the proportion of the tokens loaned to tokens held by a user.
- Pallet Deployment. Teams can stake KAR to deploy new Substrate pallets on the Karura blockchain.
Apart from all that, the KAR token is a digital asset that can be added to your crypto portfolio. You can track the KAR price on its live price chart above.
Who Founded Karura?
Karura is a project by Acala Network, developed by the Substrate Development Academy. Its parent network, Acala, is the recipient of multiple grants from the Web3 Foundation. The protocol’s founders are Bette Chen, Ruitao Su, Bryan Chen, and the pseudonymous 0xThreeBody.
Karura is backed by top funds comprising Coinbase Ventures, Pantera Capital, Hypersphere, CoinFund, Zee Prime Capital, and a dozen more. Just like Acala offers DeFi for Polkadot, Karura is the DeFi hub for Kusama. Karura developers built the dedicated DeFi platform to power liquidity, economic activity, and stablecoin utility on Kusama. Kusama's infrastructures ensures scalable, secure, and fast cross-chain DeFi services on Karura.
Tokenomics of KAR
KAR has a fixed and deflationary token supply. All 100 million tokens were issued at launch on the Kusama chain. The tokens are distributed as follows: 10% to the team, 29% to backers, 34% to auction and liquidity programs, 10.25% to reward reserve, 11.75% to the treasury, and 5% to ecosystem development.
You can view the KAR price and its price trends for any period since its launch on the aforementioned Karura price chart.
