What is USK?

Kujira USK will be a native Cosmos overcollateralized stablecoin soft-pegged to the US dollar, initially backed by ATOM. Users stake collateral to mint USK while users would burn USK to redeem their collateral. Further, if the value of a user’s collateral were to fall too low, it would be liquidated.

USK is created or ‘minted’ by locking crypto assets such as $ATOM as collateral on smart contracts. USK is minted (after subtracting a 0.5% minting fee that is distributed across KUJI stakers) and borrowed at a 5% APR (with all interest accruing to the borrower’s CDP over time), then the borrower may swap the USK for other crypto assets such as ATOM or KUJI.