Kusama, a figurative “wild cousin” to Polkadot, is auctioning parachains for emergent DeFi projects to get their start. Let’s take a look at what the platform offers, as well as which incoming projects are the most promising.
Kusama is a noteworthy development for the DeFi world because it introduces truly unprecedented interoperability and scalability. It’s built using Substrate with nearly the same codebase as Polkadot, the industry-leading multi-chain infrastructure. It offers a number of advantages over other networks, like open governance that lets a community vote and control the network, as well as advanced technology that employs the newest features before they land on Polkadot.
It furthermore offers a level of composability that goes far beyond other networks. Developers will appreciate this high level of flexibility offered by Substrate technology, enabling the creation of sophisticated decentralized platforms.
Kusama developers warn the public to expect chaos, but recent news like Tether’s launch of a Kusama-Based USDT token is highly encouraging. It seems likely that this industry-leading ecosystem will quickly emerge from any such chaos — this would of course be impossible without a number of innovative projects competing to win Kusama’s first parachain auction.
Kusama’s network has sufficiently matured to become a meaningful DeFi haven. It initially launched as a test network for Polkadot, but in the end, Kusama actually obtained real value. As of this writing, its market cap exceeded $1.64 billion dollars, approximately one-tenth of Polkadot’s. This places Kusama 54th in terms of market cap — network value is critically important for establishing a successful DeFi ecosystem, as it impacts liquidity and overall user interest.
Only a small number of projects will actually win a slot on Kusama, but those that do will likely establish themselves as key DeFi market players for a long time to come. It’s highly likely that participants building on this network first will gain the highest value.
In a healthy bull market when cryptocurrencies are trading strongly, the DeFi sector easily exceeds $100 billion. As this technology holds the potential to reshape the $1 quadrillion derivatives market, there’s reasonable speculation that it may end up climbing to such a high valuation. DeFi principles have the opportunity to reshape the future of banking around the world, and be valued accordingly.
Here are three high-caliber DeFi projects that are coming to Kusama.
Karura by Acala (https://acala.network/karura)
Altair by Centrifuge (https://centrifuge.io/altair/)
Genshiro by Equilibrium (https://genshiro.equilibrium.io/en)
Taking its name from a creature with a human torso and birdlike head in Japanese mythology, Karura will access Kusama’s plug-and-play security while enjoying high-capacity processing speeds, micro-gas fees, and interoperability between multiple networks,…
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