TVL soared by 1200%, and one article read about Cosmos's popular project Kujira

2023-12-12 09:43:24

Original title: “Hottest project on Cosmos?”

Original article by Jake Pahor

Original compilation: Luccy, BlockBeats

Editor’s note:

*Recently, the Cosmos ecosystem has been moving frequently, and today, the Cosmos Hub community, the official governance forum, launched a proposal for “Deploying Smart Contracts with Permissioned Models”, aiming to use the smart contract platform CosmWasm for governance. In addition, both TIA and INJ prices rose, with TIA briefly topping $11.5 at the time of writing, up 14.9% in 24 hours, a record high. INJ briefly broke through $25, up 20.02% in 24 hours. *

Last month, crypto researcher Jake Pahor conducted research on Kujira, the L1 platform of the Cosmos ecosystem, and listed Kujira’s bullish catalysts, which BlockBeats compiled as follows:

The Cosmos ecosystem is thriving, and Kujira is leading the way.

TVL has soared by 1, 200% this year and shows no signs of slowing down.

This is my November 2023 research report on KUJI.

Overview

Kujira is a decentralized Layer 1 ecosystem focused on building sustainable fintech solutions and tools. Its suite of DeFi products continues to expand and include:

Liquidity engine *Dex
Money market *Liquidation
Stablecoins
On-chain order book

Use Cases

Kujira has created an ecosystem of dApps and infrastructure to bring institutional-grade tools to everyone. Here’s what sets them apart:

Built using the Cosmos SDK
Fast block generation time (2.2 s)
Specific application chains
Avoid network congestion and block space issues

Despite being canceled after the collapse of the 2022 Luna Classic, the team has shown remarkable adaptability. They quickly reversed course and built a fully semi-permissioned blockchain on Cosmos in less than 6 weeks.

The project now has a thriving ecosystem of dapps and tools.

Adoption

Kujira TVL saw strong growth in 2023 and is currently trading at just over $42 million.

In the last month alone, TVL has grown by 50%. Here are the details of each product:

Ghost: $18.7 million
USK: $12.2 million
FIN: $5.6 million
Bow: $5.3 million
Orca: $212,000

Income

The protocol’s main source of revenue comes from its dApps. Users use KUJI tokens to pay for network and dApp fees, and all fees and rewards are then distributed to KUJI stakers.

In the last 90 days, the agreement has generated $100,000 in revenue.

Tokenomics

The native token, KUJI, has a variety of uses:

Pay for network and dApp fees *Pledge *Governance

Unlike inflationary assets, KUJI relies on the adoption of its dApps and products to generate fees, ensuring the sustainability of the protocol.

Through a governance vote in January '22, the total token supply was reduced from 150 million to 122.4 million, and all vesting will be completed in November 23. Current Supply Statistics:

Circulating supply = 116.9 m
Max Supply = 122.4 m
Market Cap = $186 million
FDV = $194 million
Market Cap /FDV = 0.96

Ministry of Finance

A community pool is a collection of tokens used to fund projects, partnerships, and other initiatives that benefit the community. The total holdings currently stand at $5.7 million, mostly KUJI, and the holdings include:

$3.59 million KUJI
$530,000 PEPE
$2700 MNTA
$131 ATOM
USD 1, 300 USK

Governance

Members of the Kujira community have the ability to submit governance proposals that address a variety of topics.

Anyone who holds KUJI can participate in voting on these proposals.

Currently, $62 million in KUJI tokens have been staked (50% of the circulating supply).

Team & Investors

Kujira was founded in May 2021 and was originally built as a decentralized clearing platform on Luna classic. The founders include:

@cryptoslang 1
@deadrightdove
@codehans 1

KUJI was launched in November 2021 through a token generation campaign (StarTerra platform).

Competitors

Kujira’s closest competitors, Frax and Injective, are also developing a suite of DeFi products consisting of DEXs, stablecoins, and order books.

However, Kujira stands out for its unique features, including liquidation, multi-chain wallet support, and cross-chain staking.

Risk & Audit

The project has the following safety features:

Code review done by SCV
Built with CosmWASM v1.0

This significantly reduces the risk of re-entrancy and DoS attacks. However, as with any DeFi project, there are always residual risks such as centralization and liquidity.

Generalization

Overall, I’m bullish on the KUJI and Kujira protocols. There are a number of bullish catalysts on the horizon:

Sonar wallet
The potential of RWA
FIN Upcoming perpetual bonds and margin trading
TVL growth during bear market
All tokens are unlocked

Total weighted score = 7.78

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