Deep Dive into Kujira: 50% TVL Growth in One Month, a Gem in the Cosmos Ecosystem?
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Deep Dive into Kujira: 50% TVL Growth in One Month, a Gem in the Cosmos Ecosystem?
Kujira is a decentralized Layer 1 ecosystem focused on building sustainable financial technology solutions and tools.
Navigating Web3 tides with focused insightsWritten by: JAKE PAHOR
Compiled by: TechFlow
The Cosmos ecosystem is thriving, and Kujira is leading the charge.
Its TVL has surged 1200% this year, with no signs of slowing down. Below is my November 2023 research report on KUJI.
Overview
Kujira is a decentralized Layer 1 ecosystem focused on building sustainable financial technology solutions and tools.
Their expanding DeFi product suite includes:
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Liquidity engine
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Decentralized exchange (DEX)
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Financial markets
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Liquidations
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Stablecoin
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Orderbook (on-chain)
Use Cases
Kujira has built a suite of dApps and infrastructure, delivering institutional-grade tools to everyone.
Here’s what sets them apart:
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Built on Cosmos SDK
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Fast block times (2.2 seconds)
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Application-specific chain
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Avoids network congestion and blockspace issues
Despite suffering heavy losses following the collapse of Luna in 2022, the team demonstrated exceptional adaptability.
They quickly pivoted, building a fully semi-permissioned blockchain on Cosmos in under six weeks.
The project now hosts a vibrant ecosystem of dApps and tools.
Adoption
Kujira's TVL has seen strong growth in 2023, currently just over $42 million.
In the past month alone, its TVL grew by 50%.
Below is a breakdown of each product:
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Ghost - $18.7 million
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USK - $12.2 million
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FIN - $5.6 million
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Bow - $5.3 million
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Orca - $212,000
Revenue
The protocol's primary revenue stream comes from its dApps. Users pay network and dApp fees using the $KUJI token.
All fees and rewards are then distributed to holders of the $KUJI token. Over the past 90 days, the protocol generated $100,000 in revenue.
Tokenomics
The $KUJI token serves multiple purposes:
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Paying network and dApp fees
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Staking
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Governance
Unlike inflationary assets, $KUJI relies on adoption of its dApps and products to generate fees, ensuring long-term protocol sustainability.
Through a governance vote in January 2022, the total token supply was reduced from 150 million to 122.4 million. All unlocks will be completed by November 2023. Current supply metrics are as follows:
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Circulating supply = 116.9 million
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Max supply = 122.4 million
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Market cap = $186 million
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FDV (Fully Diluted Valuation) = $194 million
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Market Cap / FDV = 0.96
The community pool consists of tokens set aside to fund projects, partnerships, and other initiatives that benefit the community.
Current total holdings amount to $5.7 million (primarily in $KUJI).
Holdings include:
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3.59 million $KUJI
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5.3 thousand $PEPE
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2.7 thousand $MNTA
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131 $ATOM
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1.3 thousand $USK
Treasury
The community pool holds tokens allocated for funding projects, partnerships, and initiatives that benefit the community.
Total current holdings stand at $5.7 million (mostly in $KUJI).
Holdings include:
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3.59 million $KUJI
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5,300 $PEPE
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2,700 $MNTA
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131 $ATOM
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1,300 $USK
These tokens will support various projects and initiatives within the community, benefiting the ecosystem as a whole.
Governance
Members of the Kujira community can submit governance proposals addressing various issues.
Anyone holding $KUJI tokens can participate in voting on these proposals. Currently, 62 million $KUJI tokens are staked (50% of circulating supply).
Team / Investors
Kujira was founded in May 2021 as a decentralized liquidation platform built on Luna Classic.
Founders include:
The $KUJI token launched in November 2021 via TGE (on the StarTerra platform).
Competitors
Kujira’s closest competitors, Frax and Injective, are also developing DeFi suites featuring DEXs, stablecoins, and orderbooks. However, Kujira stands out due to unique features such as liquidations, multi-chain wallet support, and cross-chain staking.
Risks and Audits
The project’s security is credible:
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Code audit completed by SCV
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Built using CosmWASM v1.0
This significantly reduces risks of reentrancy and DoS attacks. However, as with any DeFi project, residual risks such as centralization and liquidity risks remain.
Conclusion
Overall, I am optimistic about $KUJI and the Kujira protocol. There are also several upcoming catalysts:
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Sonar Wallet
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Potential real-world assets (RWA)
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Upcoming perpetual contracts and leveraged trading on FIN
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TVL growth during bear market
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Full token unlock
Note: I am not an ambassador or advisor for Kujira. This article does not constitute financial advice.
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