The decentralized finance (DeFi) network Kujira has merged with several of its major ecosystem projects to form a single entity called the 'Rujira Alliance' to develop a new application layer for the cross-chain liquidity protocol THORChain.
Kujira and Partners Merge
The Kujira network has merged with three key ecosystem partners - Fusion, Unstake, and Wink. The new application layer will be powered by a new token called RUJI. The merger will not affect the functionality of Kujira's existing KUJI token or the project's native blockchain network, as merging into RUJI will be entirely voluntary.
New Application Layer
THORChain founder John-Paul Thorbjornsen claimed that the new application layer would feature a product for each major DeFi vertical, including order books, perps, a token launchpad, non-fungible tokens (NFTs), lending, and money markets. The new app layer will solve the problem of maximum extractable value (MEV) by splitting income between consensus and liquidity, resulting in a better user experience.
Market Reaction and KUJI Situation
Following the announcement of the new application layer, THORChain's RUNE token rallied by 8%, from $3.60 to $3.89. On the other hand, the KUJI token faced controversy in August when Kujira faced liquidity issues due to exploits and social attacks, leading to a 70% drop in its value. Currently, KUJI trades at $0.38, down 13% on the day and 91% from its all-time high of $5.56 reached last year.
The merger of Kujira and its partners into the new Rujira alliance and the development of a new application layer for THORChain present significant opportunities for the DeFi ecosystem. The new layer aims to launch a safe and well-managed application, potentially strengthening THORChain's market position.
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