Kujira, a Layer1 blockchain built on Cosmos, has announced that its latest product, BOW, is now live on the mainnet. 
BOW is an AMM version of FIN, Kujira’s on-chain order book DEX, that intends to allow liquidity providers to earn yield while also increasing trade volume on FIN and therefore increasing the advantages of KUJI staking.
We are incredibly proud to announce the MainNet launch of BOW All the details you need are in this Medium post https://t.co/VTyJHJaQB6https://t.co/9Qb5NSweiP(Single-sided deposits coming soon)1/5 pic.twitter.com/wVStDFVdbv
— Kujira (@TeamKujira) December 2, 2022
BOW uses an internal algorithm to automatically place a set of orders on a FIN pair based on its own internal token balances. It uses the same XYK algorithm that AMMs like Uniswap use to place their orders. As market buys and sells come in, these orders are hit.
When orders are filled, the contract’s internal price calculation moves up and down as the mid-market rate on the pair moves, causing the order placement logic to re-submit orders at the new mid-market rate.
The combination of the internal pricing algorithm with the internal order placement logic means BOW is an entirely self-sufficient and 100% on-chain market maker for the FIN order book.
It offers liquidity providers a chance to earn yield by adding to the depth of a given trading pair. In turn, this liquidity is put to work providing an optimal environment for traders by narrowing the price spread and ensuring order books are deep enough to handle volume.
Users can receive additional rewards by staking LP tokens.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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