Kujira fumbled after using their treasury in yield products. They took a massive hit on the price and people thought their days were over until JPThor (founder of THORChain) stepped in.
So what is happening now?
Kujira has announced a partnership with THORChain. This collaboration will integrate THORChain's native cross-chain swap capabilities into Kujira’s DeFi suite, leveraging THORChain's deep liquidity and enabling access to native assets like $BTC and $ETH. This move is set to enhance Kujira's growth by tapping into THORChain’s established ecosystem, which has seen substantial activity recently, with hundreds of millions in TVL and billions in trading volume.
The partnership also brings an underwritten token raise, aimed at clearing a deficit on Kujira’s balance sheet due to past risk management issues. This raise, supported by THORChain’s founder with a $3 million backstop, will ensure affected vault depositors can withdraw their funds post-sale. The sale will be conducted through two auctions to repay debts in $USDC and $USK.
In addition to financial restructuring, they introduce key operational changes. Kujira's leadership will see a shift with the departure of Dove, who has been instrumental in the project's success. In their place, trusted community members, Amit and PragmaticMonkey, will join the core team, with PragmaticMonkey taking charge of treasury management and dApp operations. These changes are part of a broader commitment to enhance transparency and accountability in Kujira’s operations.
This partnership is strategic between Kujira and THORChain, with both teams focused on delivering world-class DeFi products and creating value for users. The community will have the opportunity to ratify the details of this partnership through an upcoming vote, after which the token raise will go live. The Kujira team are optimistic about the future, highlighting the shared vision and synergy between the two ecosystems.
Note: both Kujira and THORChain are Cosmos / Tendermint protocols.
Read more: https://winkhub.app/posts/kujira-recovery-plan-thorchain-partnership
I stayed away from $KUJI because I always saw it as similar to Terra - very much a looped liquidity system. You buy KUJI, stake it, mint stablecoins, buy more KUJI, and so on. I doubt this will change much, but I believe they will get a boost in liquidity through Thorchain.
Deffo worth putting on your radar. Show Less
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