Capx Liquid becomes the First Dapp to Launch on the Karura Parachain
We are excited to announce the launch of Capx onto Karura; Acala’s experimental network on Kusama. Capx Liquid — a liquid vesting & token lifecycle management tool shall be the very first dApp to launch on Karura, thereby providing the infrastructure for the projects to be able to test their products for the secondary markets on Kusama before launching on Acala, the DeFi hub of Polkadot.
What is Karura?
Founded by the Acala Foundation, Karura is a scalable, EVM-compatible network optimized for DeFi, and built on Kusama. It’s an all-in-one DeFi platform that offers a suite of financial apps including: a trustless staking derivative (liquid KSM), a multi-collateralized stablecoin backed by cross-chain assets (kUSD), and an AMM DEX — the KaruraSwap — all with micro gas fees that can be paid in any token.
Not only that, but Karura provides an ethical and sustainable token distribution model as well as the on-chain Karura Treasury, both of which support its community and longevity. And because Karura leverages its novel Acala EVM+, which enables Ethereum compatibility with unlimited Substrate* functionality, the network is primed to support the deployment of leading DeFi projects who aim to expand their services beyond Ethereum.
WVTs, Capx Ecosystem & the Secondary Markets
Wrapped Vesting Tokens (WVTs)
Wrapped Vesting Tokens i.e. WVTs are wrapped liquid derivates of unvested tokens. As projects vest their tokens using Capx Liquid, they will not only be able to allocate these unvested tokens to their investors but at the same time issue WVTs against these unvested tokens as well. These WVTs are generated in 1:1 ratio to the locked unvested tokens, and act as depository receipts against the original unvested tokens. Thus anyone holding a WVT of a project’s token is the designated owner of the project’s unvested token and can therefore swap the same for the original token at the end of the vesting cycle.
Capx Ecosystem comprises of products such as — Capx Liquid, Capx Exchange, and financial instruments like Wrapped Vesting Tokens (WVTs) & Community Bonds (CBDs) powering the secondary markets.
- Capx Liquid A liquid vesting and token lifecycle management tool that the Founders and Teams can use to vest their tokens as well as issue WVTs against them.
- Capx Exchange An Omnichain Liquidity Aggregator facilitating the most optimised trades at the best price across all chains in secondary as well as primary markets.
The Secondary Markets
As Acala is building the DeFi hub of Polkadot by providing the infrastructure for dApps and parachains to tap into Polkadot’s DeFi ecosystem, we at Capx aim to provide the dApps on Acala the access to the secondary markets in Polkadot with the help of our Capx Ecosystem, thus enabling them to better manage their token vesting, liquid vesting, investor unlocks, wrapped incentivisation for community and overall token lifecycle.
With the launch of our dApp Capx Liquid on Karura, to be followed by Capx Exchange, the projects in the Kusama ecosystem will be able to leverage the Capx Ecosystem, while the projects on Polkadot will be able to leverage the Capx Ecosystem on Acala.
Leveraging the Power of aUSD
aUSD is the native over-collateralized and decentralized stablecoin of the Polkadot and Kusama ecosystems, users can trustlessly and natively bridge over aUSD to any of the parachains to be used as a solid and decentralized form of money.
As Acala becomes the gateway for Capx to tap into the Polkadot DeFi Ecosystem, the introduction of WVTs and CBDs (Community Bonds) and the integration of aUSD as the base pair on Capx Exchange — would open opportunities for all stakeholders of the ecosystem, thereby increasing the use cases of aUSD multifold.
As Founders and Teams use Capx Liquid to issue WVTs of their token to investors and team members, aUSD would become one of the default stablecoins used on Capx Exchange to place buy/sell orders of these WVTs in the secondary markets. To know more on how Capx can add value to your project check out — Capx For Teams
Liquidity in secondary markets enables Founders to formulate robust tokenomics model due to the foresight ‘liquid vesting’ brings to the table.
As angel investors & VCs holding WVTs of their portfolio projects look to partially liquidate their portfolio with the objective to -
- Either hedge their positions by doing a swap with another fund, or
- Simply re-invest into a promising opportunity on Polkadot
We would see an inflow of on-chain liquidity in the secondary markets of Polkadot & Kusama. The increasing sell orders of WVTs on Capx Exchange would not only help projects to increase their floor price, but also enable investors to put their unvested tokens to use, therefore adding to the adoption of aUSD. To know more on how Capx can help manage your portfolio better check out — Capx For Investors
With Capx Exchange investors not only benefit from the secondary market liquidity but enjoy added layer of anonymity and privacy with tier-enabled ZK exchange features.
As a Community member and a retail investor, with Capx Exchange you would get access to institutional dealflow similar to that of angel investors and VCs, as well as get to execute the most optimised trades across chains with our Omnichain liquidity aggregator model.
This would lead to the Polkadot community using aUSD for token swaps across a range of assets, tapping into the asset’s liquidity from multiple chains, therefore exponentially growing the aUSD holders.
Not only this, with Community Bonds (CBDs); a convertible bond that can be used by Founders to raise capital directly from the community, being adopted and used by Launchpads & Projects on Polkadot — would open doors for the community to become an early-stage investor into the projects. These CBDs of projects will be bought in aUSD.
Become a part of our community to stay updated on the launch of products being built on Capx, such as Sigma Drop & Tasks, and Community Bond of different projects — Join our Discord
About Karura & Acala
Acala is a decentralized finance network powering the aUSD ecosystem. The core product, Acala USD (aUSD), is a decentralized, multi-collateral, crypto-backed stablecoin serving as the native stablecoin of the Polkadot ecosystem. Acala’s Ethereum-compatible blockchain has built-in DeFi protocols for application developers to leverage, including a trustless staking derivative (liquid DOT — LDOT), a decentralized exchange, and the EVM+, a hybrid EVM offering fully Ethereum-compatible development environment plus full compatibility with Substrate. Karura is Acala’s sister parachain to serve the Kusama ecosystem and shares the same codebase as Acala.
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To keep yourself updated on Capx
Watch out for Twitter Spaces, special online launch events, onboarding of new projects onto the Capx Ecosystem and much more. Stay tuned to our official Twitter channel and become part of our communities to keep yourself updated on the latest developments.
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