DeFi protocol Karura Network is the first to gain space to build its own parachain on Kusama, Polkadot's testnet.
On Twitter, Kusama developers announced the winner of the first parachain slot auction on the testnet. Karura Network, the protocol DeFi which raised over $130 million from the community in a crowd loan, is the first protocol to win a builder slot within the Kusama network.
Karura Network is a decentralized finance (DeFi) protocol designed by the Acala Foundation, which aims to become “the all-in-one DeFi hub” of Kusama and Polkadot. On their Twitter account, the developers of this protocol reported which are already connected to the first Kusama parachain space where they are already successfully producing their first blocks.
Karura Network’s addition to Kusama was supported by over 15.000 stakeholders, who locked their KSM tokens in favor of the protocol.
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Kusama's all-in-one DeFi hub
The auction for space on Kusama closed on block 8.023.773 of the network and the lease won by Karura Network will be valid until May 13, 2022. In this way, the decentralized protocol will have almost an entire year available to “reimagine and reinvent” the possibilities and opportunities that the DeFi ecosystem offers to its thousands of active users around the world.
Karura Network is built as a network blockchain highly scalable and efficient capable of offering a set of decentralized financial applications such as: a stablecoin with multiple collaterals backed by cross-chain assets, called kUSD; a decentralized exchange protocol (DEX) and automated market maker (AMM) that enables micro gas fee transactions using almost any token, and much more. All within the growing Kusama and Polkadot ecosystem.
In addition, Karura Network is working to implement full support for EVM; work that is already bearing fruit on the testnet of this network and that when implemented on mainnet will allow the creation of highly scalable and interoperable DeFi applications with different networks with very low commission rates.
Kusama, a space for financial innovation
The protocol developers stated that building on Kusama will allow them to push the boundaries of what is possible, as this is a multi-chain network for radical innovation in digital ecosystems and, in particular, DeFi.
At Kusama, the Acala Foundation team hopes to develop a bold, innovative new class of financial applications that reimagine today’s financial products and services.
“Karura will deliver decentralized financial products and stable assets to the entire Kusama network ecosystem.”
Kusama, which functions as a pre-production environment for Polkadot, and allows developers to create applications much faster than on the main network, is one of the many solutions offered in the crypto industry to overcome the scalability and performance problems that arise in Ethereum Currently. This network, which is the second most important blockchain in the industry by capitalization, and a pioneer in the development of Dapps y smart contracts, has limited scalability, which has caused network congestion due to its high level of use and demand, increasing the costs of interacting on it. At the time of this publication, a simple transaction on Ethereum has an average cost of $10.
Start of the second auction at Kusama
According to schedule shared by Gavin Good, co-founder of Polkadot, days ago, the second auction of space for Kusama parachains began this Tuesday and will be held for a period of 7 days. Thus, on June 29, the network will announce its second winner.
In total, Kusama is auctioning off 5 parachain slots in this first round. The developers have announced that they will take a break after the 5 auctions are over to evaluate the performance and throughput of the network and its parachains. After a while, they will announce another round of auctions to add more and new parachains to the Polkadot testnet.
Continue reading: Kusama Council approves auctions for new blockchains on Polkadot testnet
