Among the extreme market conditions, Kujira, a crypto project, announced the launch of its stablecoin USK on Cosmos.
Kujira was first building its project on Terra blockchain, but after the collapse of its ecosystem, the project was migrated to layer 1 protocol Cosmos.
The $USK is the over-collateralized Cosmos stablecoin, which is soft-pegged to the USD and initially, it will be backed by $ATOM. However, later on, $USK will also be backed by Kujira’s native token, $KUJI.
In a blog post, the Kujira team revealed that the inspiration to develop USK came from the decentralized lending protocol MakerDAO and its stablecoin DAI.
Before the fall of Terra, Kujira developed ORCA to provide high capital efficiency to Anchor liquidations.
The project team is confident about their robust and reliable model for a stablecoin that will make $USK more sustainable in the DeFi ecosystem.
It was revealed that, in spite of Solidity, their algorithmic stablecoin was created utilising the more robust language Rust.
“As we plan to focus on payments and commerce and launch our own high-quality Kujira wallet, we felt that we would have far more flexibility for future integrations if we were able to launch our own native stablecoin,” the announcement said.
“We rebuilt Kujira from the ashes of Terra Classic’s collapse. We understand just how important it is to handle a stablecoin correctly by pursuing transparency, community involvement, sustainable governance, while focusing on adoption and tangible value.”
Unlike most stablecoins, $USK is not backed by other stables as it strives to be sovereign and uncensorable. The stablecoin will leverage the high liquidity of $ATOM on Cosmos and take it as collateral.
Also, the blog post revealed important parameters such as mint fee, 5% borrow APR, 1% liquidation fee, 0.5% ORCA withdrawal fee, and 60% max $ATOM LTV.
According to the announcement, $USK, and ORCA will be launched on Testnet on August 10 for quality assurance and testing purposes for 2 weeks.