Kujira, a decentralized finance (DeFi) network, has announced the formation of the Rujira Alliance in collaboration with three important ecosystem partners: Fusion (FUZN), Unstake (NTSK), and Wink.
Kujira, a decentralized finance (DeFi) network, has announced the formation of the Rujira Alliance in collaboration with three important ecosystem partners: Fusion (FUZN), Unstake (NTSK), and Wink. This new cooperation intends to create a novel application layer for the cross-chain liquidity protocol THORChain, which will be powered by a new native coin called RUJI.
The alliance will see Kujira and its partners working together to enhance THORChain's capabilities. The newly formed entity will focus on building a advanced app layer on THORChain, which is set to revolutionize the DeFi space with a full suite of products, including order books, perpetual contracts, a token launchpad, NFTs, loans, and money markets. This new infrastructure is designed to work seamlessly with the eight current chains.
John-Paul Thorbjornsen, the founder of THORChain, expressed great enthusiasm about Rujira's potential. In a recent statement, he asserted that the alliance had the capability to compete with major platforms like Solana, owing to its strong security, decentralization, liquidity, governance, and lack of miner extractable value (MEV). Thorbjornsen highlighted that Rujira was bringing back the innovation spirit of Terra's 2020 app-chain ecosystem.
The development comes as Kujira has faced significant challenges, including concerns over liquidity and security vulnerabilities. In August, the Kujira team announced a KUJI token sale to address these challenges, with Thorbjornsen pledging $2-3 million to support the transition to the new Rujira app layer. Despite the difficulties, the alliance's formation is seen as a strategic move to stabilize and propel Kujira and its partners into a new phase of growth.
Following the announcement, KUJI, Kujira's native token, experienced a drastic decline of 70% in less than 24 hours. At the time of writing, KUJI is trading at $0.37, down over 93% from its all-time high of $5.56. Meanwhile, THORChain's RUNE token has shown positive movement, rising by 7% in the past 24 hours to trade at around $4.03.
As the Rujira Alliance prepares for its launch, the DeFi community is keeping a close watch on how this impactful merger will shape the future of decentralized finance and cross-chain liquidity solutions.
