Karura Swap has opened trading for the Kusama/Karura-KSM/KAR pair as the platform becomes one of the first DEXs to launch on Polkadot and Kusama. Karura, the Kusama implementation of the Acala protocol, has launched its decentralized exchange platform (DEX), Karura Swap.
As per Friday’s announcement, the DEX platform is now live, with KSM/KAR being the first trading pair on the exchange. According to the details of the announcement, Karura Swap has gone live with an initial total value of north of $3.4 million, with more than 1,000 unique liquidity providers (LP). Cardano ADA has risen.
The team revealed that the DEX launch highlighted the benefits of the “Bootstrap feature” that provides a liquidity sandbox for trading pairs with the walled environment, reportedly preventing front-running and market manipulation during the initial launch of a trading pair. “With Bootstrap, Karura aims to enable trustless trading at a fair market price to reflect the principles of fair and open financing for all,” the blog post added.
The inaugural KSM/KAR pair has indeed gone through the bootstrap phase and only went live after the mandatory liquidity target was met. With the launch of the DEX, Karura Swap will become the first decentralized exchange on Polkadot and Kusama and the first avenue for reliable trading of Kusama tokens on a DEX.
Other trading pairs launched on Karura Swap can also utilize the Bootstrap feature. LPs can choose to deliver one or both of the tokens into the pool during the process, while trading is suspended until the established liquidity target is met. Polkadot has started to rise.
Envisioning Karura as a decentralized financial hub on Kusama, the team said other features such as kUSD stablecoin lending, staking and liquidity mining programs are in the works. These added protocols are part of plans to build the network within the 48-week network lease secured by winning a parachain auction slot.
As previously reported by Cointelegraph, Karura became the first winner of the Kusama parachain slot auction on June 22, with over 501,000 KSM in the crowd-lending process. These slot auctions determine the parachains that will be added to the Kusama relay chain, which serves as a companion network for Polkadot.