Chains Actors - Who they are?
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In this wiki page, I will analyse some big players acting as chain provider for Kusama and Polkadot Eco System.
Founded by Gavin Wood, Robert Habermeier, Peter Czaban (history as tech lead at Web3 foundation).
Loved by devs, because governance cycle is 7 days in place of 28 days on Polkadot.
It is a PoS network.
It positions as the Defi hub of Kusama.
What is Karura in a nutshell ->
Acala (Defi Hub of Polkadot) and Karura (Defi Hub of Kusama) are sister networks. ->
Karura is a chained customized for Defi domain.
Karura has been founded by Ruitao Su, Bette Chen, Bryan Chen, Fuyao Jiang (New Zeeland based)
Solution
It is a layer 1 blockchain, but they have also build a stack of application on top of it.
At layer 0, you have Kusama that is providing Cross-Chain Communication and Security
At layer 1, you have the Karura Node (using Substrate and each special module is a pallet: Dex Pallet, kUSD, Oracle, Governance, Treasury, Acala VM (for Eth Support). Particulary for Gaz fee paying, you can pay as consumer with what token you have in your wallet (Eth, Bitcoin, kUSD)
Karura application (DAPP) running above and using those building blocks, like:
Swapp using the dex (AMM Style decentralized exchange, like uniswap)
Take loon with kUSD (becoming a liquidity provider)
borrow with Stable coin
KSM Staking (LKSM = liquidity KSM staking derivatives)
Decentralized sovereign wealth fund
So with the app, user will be able as example to:
Collaterize KSM, BTC, Eth, to generate kUSD stable coin (for loon products)
Pay gaz in any token
KAR is the transaction fee token and the governance token ot eh Karura Chain. It is a utility token. If a user pay gaz fee in BTC, then it goes to the Dex Pallet that will swapp the BTC in KAR, then Gaz fees will be paid in KAR.