On August 8th, 2022, a decentralized finance (defi) altcoin, Kujira (KUJI) published a blog consisting an announcement of releasing a stablecoin. Kujira was earlier created on the fallen Terra (LUNA) network that made defi protocol to shift over the Cosmos (ATOM). Following the announcement of launching a stablecoin, KUJI altcoin price took a massive jump.
According to the blog post, Kujira developers stated that they went on to create a strong next-gen stablecoin in the form of USK. They cited the instance of Terra’s algorithmic stablecoin UST’ drastic fall to make them create something like this. The development team said that their USK stablecoin is inspired from MakerDAO and its native stablecoin DAI.
Recalling the stablecoin collapse that happened lately, the developers said that they realized after the incident that crypto space now required a whole new mature model that could be sustainable and reliable. Such an asset could have potential to act as infrastructure for the defi sector and related assets. This will also ensure Terra network collapse like instances would not happen again.
As the blog mentioned, USK is a Cosmos based stablecoin with over collateralization along with pegging with the USD. Although initially it will have backing of ATOM native assets of Cosmos, where KUJI will be added later.
The stablecoin project is said to be avoiding any dependency on other bigger players in the centralized stablecoin space, be it Tether (USDT) and USD Coin (USDC). The team noted that a decentralized space and money would be better suited with decentralized stablecoins. This way the risk of censorship could be mitigated.
USK token is not the only offering from Kujira where the project has plans to offer three more defi products. This includes a liquidating capital focusing ORCA, a decentralized exchange named FIN and governance protocol called BLUE. Additionally, they are also working towards developing a native wallet.
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