Karura

Karura is the all-in-one DeFi hub of Kusama.

Founded by the Acala Foundation, Karura is a scalable, EVM-compatible network optimized for DeFi. The platform offers a suite of financial applications including: a trustless staking derivative (liquid KSM), a multi-collateralized stablecoin backed by cross-chain assets (aUSD), and an AMM DEX – all with micro gas fees that can be paid in any token.

Why build on Kusama?

Kusama is Polkadot’s faster, wilder cousin – a multi-chain network for radical innovation.

Kusama and Polkadot are independent, standalone networks built in nearly the exact same way, but Kusama has faster governance parameters and higher risk tolerance.

By launching on Kusama, Karura can push the limits of what’s possible, giving the Acala Foundation team a place to launch bold new financial innovations. Karura will access Kusama’s plug-and-play security while enjoying high-capacity processing speeds, micro-gas fees, and interoperability between multiple networks, all ultimately bridged to Polkadot.

Karura will deliver decentralized financial products and stable assets to Kusama’s entire ecosystem of networks.

Transaction Fees

Powers the micro gas fees and smart contract execution.

Node Incentivisation

Incentivizes network nodes to monitor and relay messages to Kusama.

Governance

Empowers the community to vote, elect council members, and drive the development of Karura.

Algorithmic Risk Adjustment

Auto-adjusts risk parameters such as interest rates or collateral ratio.

Pallet Deployment

Allows teams to deploy new Substrate pallets on the Karura blockchain by staking KAR.

kUSD Stablecoin

The kUSD stablecoin is a decentralized, trustless, collateral-backed cryptocurrency whose value is strong-pegged to the US Dollar. By maintaining a strong-peg to the US Dollar, users are shielded from the price volatility that is common with many cryptocurrencies.

Minting kUSD

Karura Apps offers access to decentralized, non-custodial, and permissionless borrowing through Vaults on the Karura network. Users can mint (generate) the kUSD stablecoin by locking assets as collateral in a Vault. It's important that users be mindful of the risks associated with Vault usage before opening one.

Karura’s sister network, Acala, the DeFi Hub of Polkadot.

Acala and Karura will operate in parallel and serve the users of the Polkadot and Kusama communities. Once Kusama is bridged to Polkadot, Karura and Acala will also be fully interoperable.