89 Interactions, 2 Today
Karura Swap has begun trading for the Kusama/Karura — KSM/KAR — pair, making it one of the first DEXs to launch on Polkadot and Kusama.
Karura, the Kusama implementation of the Acala protocol, has launched Karura Swap, a decentralised exchange (DEX) platform.
According to the announcement issued on Friday, the DEX platform is now live, with KSM/KAR being the first trading pair on the exchange.
According to the announcement, Karura Swap has gone live with an initial total value of more than $3.4 million and over 1,000 unique liquidity providers (LP).
The team revealed that the DEX launch highlighted the benefits of its “Bootstrap feature,” which provides a liquidity sandbox for trading pairs with the walled environment, preventing front-running and market manipulation during a trading pair’s initial launch.
“With Bootstrap, Karura aims to empower trustless trading at fair market rate to reflect the tenets of equitable and open finance for all,” the blog post added.
Indeed, the first KSM/KAR pair went through the bootstrap phase and only went live after meeting the mandated liquidity goal. Karura Swap becomes the first decentralised exchange on Polkadot and Kusama, as well as the first avenue for trustless trading of Kusama tokens on a DEX, with the launch of the DEX.
Other trading pairs that will be launched on Karura Swap will be able to use the Bootstrap feature as well. LPs can choose to supply one or both tokens in the pool during the process, while trading is halted until the set liquidity target is met.
Karura is envisioned as a decentralised finance hub on Kusama, with other features such as kUSD stablecoin loans, staking, and liquidity mining programmes in the works, according to the team. These new protocols are part of the plan to expand the network within the 48-week network lease secured by winning a parachain auction slot.
Karura became the first Kusama parachain slot auction winner on June 22, as previously reported by Cointelegraph, with over 501,000 KSM staked in the crowd-loan process. These slot auctions determine which parachains will be added to the Kusama relay chain, which serves as Polkadot’s companion network.