USK - Stablecoin Summit Protocol Highlight
Greetings Kujira & Shade community,
In this highlight series, Shade Protocol will cover our partner projects for the upcoming Cosmos stablecoin summit in December - giving viewers the opportunity to learn about these protocols in advance.
The following is a list of protocols and speakers featured via the Cosmos Stablecoin Summit:
- FRAX
- Nuon
- Comdex
- Agoric
- Shade Protocol
- Duality
- Kujira
- Axelar
- Jack Zampolin
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Kujira
Kujira is a semi-permissioned sovereign CosmosLayer 1 platform for community selected projects that create true value. As a tight-knit hub of innovative, revenue-generating products with great UX, Kujira aspires to revolutionize DeFi and transform payment infrastructure. Sustainable high-quality offerings allow retail investors to go beyond exchanges, staking, and ICOs, and access opportunities once reserved for the whales and elites. [credit]
One of the flagship products of Kujira is USK - an over-collateralized Cosmos stablecoin soft-pegged to USD initially backed by ATOM, DOT & wETH. In addition to USK, the Kujira ecosystem as a variety of supporting dApps that help enhance the utility and optionality of USK:
- BLUE (dashboard for staking & bonding)
- BOW (liquidity hub)
- FIN (on-chain orderbook)
- ORCA (liquidation platform)
USK
Kujira has designed USK to maintain its price stability through a combination of overcollateralization and trading incentives. The stablecoin is set “soft-pegged” to the U.S. dollar, allowing the exchange rate to deviate within a range versus a hard peg to $1. Similar to DAI, USK is overcollateralized by crypto assets, meaning that the stablecoin issuer’s treasury holds more digital assets in value than the market capitalization of the stablecoin.
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USK tokens can be minted (created) only by locking up crypto such as ATOM as collateral and borrowing USK against them for a 5% interest and a 0.5% minting fee. The fees that USK accrues will be distributed among KUJI token stakers.
With many stablecoins being released in the Cosmos, here are the reason the Kujira team is optimistic about the potential success of USK:
- Kujira pioneered a top-grade liquidation queue for Anchor Protocol
- As a native Cosmos stable, $USK gives $ATOM another use case driving value accrual
- Rust is an expressive codebase for $USK and easily allows for more technical complexity as compared to JavaScript or Solidity - improving the potential utility of USK compared to something like DAI.
- $USK, key infrastructure, is sovereign, uncensorable, and revenue generating
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Conclusion
Shade Protocol is an ambitious array of application-layer products focused on a simple end user experience that involves the incorporation of privacy by default. These interconnected privacy-preserving DeFi products built on Secret Network will change DeFi as we know it — empowering the next generation of value creation and exchange. Shade Protocol is launching Silk: a privacy-preserving collateralized, reflexive stablecoin built on Secret Network.
Without privacy, DeFi is incomplete. Traditional financial markets offer a degree of privacy for users, and as a result offer up greater protections in some capacity than existing DeFi markets. Shade Protocol will be the world’s first truly cohesive decentralized and privacy-preserving financial applications — ushering in a golden era for Web3. Shade Protocol will always push for privacy by default, privacy as an expectation, and privacy as the key to unlocking the full value of a decentralized future.
But we can’t do this without community. We need you to join our community and help make Silk and Shade Protocol a reality.
December 20th, 7:00 pm. UTC - Shade Protocol livestream on YouTube.
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