Karua, the DeFi network of Acala protocol, has launched the first decentralized exchange on Polkadot and Kusama ecosystem called Karuara Swap. According to a blog post published on Friday, the DEX went live with more than $3.4 million in locked assets (TVL) and 1,000 unique liquidity contributors. It also opened trading for Kusama and Karura’s respective native tokens KSM and KAR. Karura Launches DEX Platform on Polkadot and Kusama Per the details provided by Karura, the newly launched DEX platform will employ a “Bootstrap” mechanism, which encourages a pool to achieve sufficient liquidity without some of the perils of market manipulation. Karura Swap tends to disable trading for assets temporarily until an adequate liquidity target is met. “With Bootstrap, Karura aims to empower trustless trading at fair market rate to reflect the tenets of equitable and open finance for all,” the announcement stated. The Bootstrap feature was also a part of the launch process, helping the KSM/KAR pair to reach its liquidity goal while allowing the market to decide on an exchange rate for the assets. Under the mechanism’s predetermined limitation, no KSM or KAR trading was allowed during the bootstrap period. In the future, Karura will provide users with more trading pairs that could also leverage the bootstrap option. Liquidity providers can opt to add either one or both tokens to the pool during the bootstrap phase. Subsequently, they will be allocated a specific number of LP shares of the pool, which are adjusted as liquidity increases. Karura, a token trading application, was the winner of the first auction slot on Polkadot’s test network Kusama in June. The win helped Karura secure a 48-week lease to build multiple services on Polkadot’s “canary.” Karura’s Future Roadmap and Other Products As of now, Karura intends to move ahead with other milestones listed in its roadmap, which will eventually bring more DeFi protocols from the network online. It is also working to introduce kUSD stablecoins, LKSM liquid staking, and liquidity mining programs for its users. All these initiatives will help Karura evolve into a “healthy and scalable network” within the 48-week duration of its lease.
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