Thread by @wekaaxyz

1/ The launch of Kujira’s native stablecoin $USK and the subsequent relaunch of ORCA is on the horizon.

What’s Kujira, ORCA, and why should you care? 🉐🐋

Thread 🧵

2/ Kujira originally launched ORCA on Terra back in 2021.

ORCA is a liquidations marketplace, initially built to provide higher capital efficiency to Anchor liquidations.

$UST was supposed to be part of the solution – but we all know how that went.

3/ With the collapse of Terra and $UST, Kujira had to find a new home.

In the span of 6 weeks, the team created the Kujira blockchain with the Cosmos SDK.⚛️

4/ So what makes ORCA and $USK cool?

Let’s start with explaining how $USK works:

$USK is an over-collateralized stablecoin soft-pegged to the USD.

It will initially be backed by $ATOM – with $KUJI to shortly follow suit.

5/ Lessons learned from Terra and inspiration taken from MakerDAO, Kujira is focused on creating a truly decentralized stablecoin.

For those not familiar, this means $USK will be minted by staking collateral, and burned by redeeming collateral.

6/ To avoid the censorship dilemma, $USK won’t be backed by stablecoins. This comes with a tradeoff:

The price of $USK will fluctuate.

In turn unlocking a decentralized and censorship-resistant unit of account for the Kujira ecosystem.

7/ So, where does ORCA come in?

ORCA has already established itself as a capital efficient liquidation model - reaching over 50,000 users and $150m TVL at its peak with Anchor.

On ORCA, you’ll be able to earn yield and get discounts on the assets you want to accumulate.

8/ Liquidations of collateralized debt positions on $USK will be orchestrated by ORCA in a seamless manner.

The collateral will be put up for auction on ORCA to be bid on at a lucrative discount.

9/ This is combined with a fee accrual system to generate a full circle with rewards for $KUJI stakers.

Liquidations, withdrawals, and interests all accumulate fees that are distributed to stakers.

10/ All in all, creating $USK increases the capital efficiency and value accrual of $KUJI, $ATOM and the Cosmos ecosystem as a whole.

11/ Additionally, with the potential of Cosmos’ interoperability, ORCA and $USK will be able to operate on a much wider scale.

Once $USK launches, the path is paved for projects to build and benefit from Kujira’s initiative.

12/ Some extra food for thought:

FIN (Kujira's orderbook DEX) is set to launch margin trading in the near future.

Bullish catalysts left and right for $KUJI and $ATOM 👀

Thanks for reading! If you found this thread informational, be sure to like or retweet the original tweet.❤️

Also check out the project Twitter @TeamKujira and Discord discord.gg/teamkujira