DeFi on the Kusama ecosystem is getting a big boost with the successful implementation of a cross-chain bridge between the Karura and Calamari Networks. With the announcement, it’s now possible to transfer Kusama-based assets across the two parachains with full privacy and anonymity.
Calamari is an important project that’s aiming to bring privacy to Kusama and Web3 through the use of a technology called zKSNARKS, which is able to obscure both wallet addresses and transaction amounts when tokens are sent between two different users. It’s a welcome addition to the Karura ecosystem. Karura is the home of Acala’s popular aUSD stablecoin, a multi-collateralized crypto asset that’s pegged 1:1 with the U.S. dollar, that sees itself as the hub of DeFi on Kusama.
The bridge between Calamari and Karura means assets such as aUSD can now be transferred across Kusama parachains with complete anonymity for DeFi users. That should help to ensure they don’t become targets for hackers when transferring high value crypto assets between different wallets and chains.
Manta Network, which created Calamari as a canary network on Kusama ahead of its own big to win a parachain on Polkadot, said that by creating a new HRMP channel and cross-consensus communication mechanism, it’s enabling both privacy and interoperability between the two networks.
Manta’s co-founder and COO Kenny Li said doing so is a big milestone, both for Manta and also the wider Kusama ecosystem. He stressed that privacy will be “paramount to the future development of Web3”.
“Now crypto assets including Acala’s stablecoin ($aUSD) and ($KAR) can move privately and freely across ecosystems, Li added.
Many other tokens will benefit from the cross-chain bridge, including Calamari’s native KMA cryptocurrency, which can now access the full range of DeFi services on Karura. DeFi users will now be able to stake, lend and borrow KMA via Karura’s platform, among other use cases.
The partnership doesn’t end here either, as Manta said the Calamari team will work with Karura to bridge and integrate other Kusama parachain assets between the two networks. Eventually, the two projects aim to integrate privacy and anonymity into Karura’s full suite of DeFi offerings.
Meanwhile, Manta and Acala continue to work together on fostering the wider Kusama and Polkadot ecosystems. In March, the projects teamed up with seven others to launch a $250 million aUSD fund that will be used to incubate promising stablecoin-focused decentralized finance applications.