Decentralized finance (DeFi) network Kujira and three major ecosystem projects have announced plans to merge into a single entity called the “Rujira Alliance.” The alliance aims to build a new application layer for the cross-chain liquidity protocol THORChain.
The alliance will see Kujira merge with three of its “key ecosystem” partners: Fusion (FUZN), Unstake (NTSK), and Wink (WINK). The four teams will work together to develop the new app layer on THORChain, which will be powered by a new token called RUJI.
THORChain Founder Claims That Rujira Could Rival Solana
I'm super excited to have the opportunity to build alongside @TeamKujira ecosystem and ship a flagship COSM-WASM chain with massive liquidity.
– well funded
– well organised
– well supported
– single brand and identity
– cohesive ecosystemWhat is on offer here is not "another…
— JP.THOR | ACEL (@jpthor) September 9, 2024
The merge will not affect the functionality of Kujira’s existing KUJI token or the project’s native blockchain network. The Kujira and THOR teams have stressed that merging into RUJI will be voluntary.
John-Paul Thorbjornsen aka ‘JP THOR’, is the founder of THORChain and has been speaking on the alliance. In a post on his X account, JP said that Rujira can rival Solana.
“What is on offer here is not “another little project” – it is an L1 DeFi behemoth that can rival Solana – simply because it has worked out: security, decentralization, liquidity, governance, and no MEV. Bringing back Terra 2020 app-chain vibes LFG!!!” Thorbjornsen said.
In an interview with Cointelegraph, JP said that the new project would feature a “combined treasury” and that he would be the project lead for the foreseeable future, allowing the Kujira team to focus solely on building out the Rujira app layer.
He went on to say that the new app layer will feature a product for each major DeFi vertical, including order books, perps, a token launchpad, non-fungible tokens (NFTs), lending, and money markets, which is “fully plumbed to eight chains already.”
Brand new fully onchain orderbook DEX is launching
$200m+ in starting seed liquidity, including $42m+ $BTC
Complete full featured DeFi ecosystem right out of the gate
Native crypto deposits, revenue paid out to stakers
Token only $100m market cap
IYKYK 😉$RUJI pic.twitter.com/4kmI5CbgTt
— PostTenebras (@PostTenebras2) September 9, 2024
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The RUJIRA Alliance Has Been Born Out Of Necessity After The Kujira Team Mishandled Its Treasury
This new alliance is necessary for the Kujira network. It was announced last month (August 1) that its founding team was facing a series of liquidity issues stemming from “exploits, socially engineered attacks, and fallouts within the ecosystem.”
The team started a KUJI sale to pay for the bad debt, with the token available at a discounted price. JP participated in the sale and bought between $2-3 million worth of KUJI on a pre-agreed condition that Kujira would migrate to THORChains new applayer.
GM all. We’d like to address the current events.
As a team we thought the best use of a portion of ops funds would be to leverage and deploy across the ecosystem in order to bootstrap liquidity and activity. We genuinely felt like this was the correct course of action at the… pic.twitter.com/qBw9w6y94b
— Rujira (@RujiraNetwork) August 1, 2024
At the time of the August 2 announcement, the KUJI token tanked around 70% in less than 24 hours. It is currently trading for $0.38, down 13.4% in the past 24 hours. KUJI has fallen over 93% from its all-time high of $5.56 on December 13, 2023.
On the other hand, following the announcement, THORChain’s native RUNE token has been up 7% in the last 24 hours. It is currently trading at around $3.92. All token data is from Coingecko.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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