Decentralized finance (DeFi) network Kujira and several major ecosystem projects have agreed to merge into a single entity called the “Rujira Alliance” to build a new application layer for the cross-chain liquidity protocol THORChain.
The new application layer will not simply be “another small project,” but a new DeFi “behemoth” that could one day compete with Solana, THORChain founder John-Paul Thorbjornsen (known as “JP THOR”) argued in a September 10 X post.
source: John-Paul Torbjornsen
Thorbjornsen told Cointelegraph that the new project will feature “integrated finance” and that he will become the project lead in the near future, allowing the Kujira team to focus solely on building the Rujira app layer.
“RUJIRA will enable THORChain to become a leading DeFi chain by debuting a secure, well-governed, and well-run DeFi app layer.”
He said the new app layer will include products for each major DeFi vertical, including orderbooks, perks, token launchpads, non-fungible tokens (NFTs), lending, and money markets, and that it is “already fully connected to eight chains.”
Thorbjornsen said that THORChain “solves” the maximum extractable value (MEV) problem by “splitting revenue between consensus and liquidity,” meaning there is no MEV on THORChain, which he argued is a “much better” user experience.
Kujira has formed a federation by merging with three “core ecosystem” partners (Fusion, Unstake, Wink), and the new app layer will be powered by a new token called RUJI.
The merger will not affect the functionality of Kujira’s existing KUJI tokens or the project’s underlying blockchain network. The merger with RUJI will be entirely voluntary.
source: In it
KUJI August Controversy
Kujira was embroiled in controversy on August 2nd when the founding team revealed that it had faced a series of liquidity issues due to “exploits, social engineering attacks, and fallout within the ecosystem.”
At the time, the native KUJI token crashed 70% in 24 hours. It is now trading at $0.38, down 13% on the day. According to CoinGecko data, KUJI is down over 91% from its all-time high of $5.56 on December 13 last year.
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THORChain’s native token, RUNE (RUNE), has jumped up to 8% since the announcement of the new app layer, jumping from $3.60 to $3.89.
THORChains’ RUNE token soars after announcement. Source: CoinGecko
THORChain is a Layer 1 blockchain and decentralized exchange (DEX) that focuses on facilitating asset swaps between typically siloed Layer 1 blockchains. It was launched in June 2022 and is built on Cosmos-SDK and Tendermint.
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