Borrow USDX on Kava with Ledger
Step-by-step guide on how to borrow USDX on Kava web app using assets in your Ledger wallet.
We’ve got some exciting news — the Kava web app now supports borrowing USDX securely using your Ledger Nano X and S devices.
Not only can USDX be spent at 60 million+ merchants worldwide through Swipe, USDX borrowers are entitled to rich returns. You’ll earn a 4.5% APY on the USDX savings rate and a 42.84% APY from the rewards distributed to BNB holders (as of August 24th, 2020). You can check out the current rates at kava.io/overview.
Step 1. Connect Your Cosmos Ledger App
Your Kava address for borrowing USDX is currently contained in the Cosmos Ledger App.
a.) Navigate to http://app.kava.io
b.) Press the [Ledger] button in Connect Wallet prompt to begin connecting your Ledger
c.) Navigate to the Cosmos App in your Ledger device and open it.
You can install Cosmos Ledger App from the official Ledger Live app.
Note: you are using the Cosmos Ledger app and not the Kava Ledger App (this will be released in the future).
Step 2. Fund Kava Address with BNB from Binance Chain
Your Kava address, in the Cosmos Ledger app, can hold multiple coins. Next we’ll transfer BNB from Binance chain to your Kava address.
Once your Cosmos Ledger app is connected:
a.) Press [Load BNB]
Next, we have to switch to our Binance Ledger app (to send coins from Binance Chain).
b.) Press [Connect Binance App]
c.) In your Ledger Device, exit your Cosmos Ledger App and open your Binance Ledger App.
You can install Binance Ledger App from the official Ledger Live app.
Once your Binance Ledger app is connected:
d.) In the Fund Account prompt, enter the amount of BNB (binance-chain) you wish to transfer to Kava. Press the [Fund] button to begin transferring your BNB.
Note: The Kava address is populated from the Kava address (Cosmos Ledger App) you previously connected to.
e.) In your Binance Ledger App review the transaction and sign.
Your BNB is automatically transferred to your Kava address.
Step 3. Borrow USDX
Great. Now with BNB in your Kava address, you are ready to borrow USDX!
a.) Press [“Borrow USDX”] button in the center of the main screen.
b.) In your Ledger device, quit your Binance Ledger app, navigate to and open your Cosmos Ledger App.
c.) In the Borrow USDX prompt, enter the amount of BNB to lock and the amount of USDX you wish to borrow. Press [Borrow] to begin the transaction.
d.) On your Ledger device (Cosmos Ledger App), confirm the transaction and sign.
e.) Press [“Done”] once the transaction is confirmed
Congrats! You have successfully borrowed USDX and are automatically eligible for BNB rewards.
Note: Liquidations occur when the current market price of your locked asset falls below the liquidation price of your borrow balance. Your borrow balance becomes safer as your liquidation price decreases relative to the current market price. Check your borrow balance often on the Kava web app. To make your borrowing more safe, you can either lock more BNB or repay USDX.
7. Managing your Borrow Balance
The Kava web app is the control center for your borrow balance. It shows your locked balance, borrowed balance, current market price of your locked assets, and your borrow balance liquidation price.
Managing your borrow balance via Kava web app
The following operations will tend to decrease or increase your borrow balance risk accordingly:
Decrease risk (green): [Lock] more assets or [Repay] more USDX
Increase risk (red): [Withdraw] more assets or [Borrow] more USDX.
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Disclaimer: This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making investment decisions.
