KUJI Token Price Decline

The native token of the Cosmos-based Kujira blockchain, KUJI, experienced a 40% price decline today, dropping from $0.97 to $0.57. This was due to liquidations from the Kujira Foundation’s operations wallet.

The foundation engaged in leveraged liquidity provision, utilizing millions of dollars they failed to manage effectively on their own DeFi platform. They claimed these operational funds aimed to enhance liquidity and foster activity on their decentralized exchange (DEX).

Liquidations transpired as the loans taken by the team using its own KUJI token reserves became undercollateralized amid volatile market conditions. This led to automated sell-offs, causing the prices of the collateralized asset to plummet. According to Pulsar Finance, the team still carries a debt position of $2 million.

The team stated, “As a team, we thought the best use of a portion of the ops funds would be to leverage and deploy across the ecosystem to bootstrap liquidity and activity.” They indicated that various attacks had targeted their positions and noted, “Sadly, this coincided with certain attacks.”

Taking responsibility for the situation, the team expressed regret over the price effects, acknowledging that while temporary, it is painful for their community, stating, “We are sorry.”

About Kujira

Kujira is a blockchain within the Cosmos ecosystem that functions as a decentralized finance hub featuring:
– A decentralized exchange (DEX)
– A lending platform
– A decentralized stablecoin called USK

The network also provides a system for liquidating undercollateralized user positions, currently boasting a total value locked (TVL) of over $42 million.