Kava’s DeFi Lending Platform is Now Live Featuring BNB and USDX Rewards.

The Kava’s DeFi Lending Platform is now live featuring BNB collateral, USDX loans, and minting rewards. With this successful launch, Kava opened the doors of DeFi to the BNB community and soon it will do the same for the greater crypto space.

With the development of the core modules needed for Kava’s DeFi lending platform out of the way, we can now start focusing on quickly expanding support to new collateral types and integrating USDX, Kava’s crypto-backed stablecoin, into new wallets, exchanges, and applications.

A Nod to Our Contributors

It has been a tremendous lift from our core developers and community contributors to get to this point given the scope and complexity of what we are doing. They all deserve a huge applause, as this upgrade features many world-first implementations such as the cross-chain functionality between Kava and Binance Chain, implementing Chainlink Oracles on the Cosmos-SDK, and all the core code for Kava’s lending functionality.

The launch of the lending functionality enables the first minting of the USDX stablecoin and features the full implementation of in-protocol incentives for USDX minters. In the months to come the Kava community will see the hard work come to fruition as the Kava Growth Fund incentives for BNB holders accelerate adoption and the first integrations of USDX start taking place.

Formal Audit & Code Review

All code deployed to Kava’s mainnet goes through several phases of review.

1. Internal Testing and Analysis — Kava’s internal team developed, reviewed, tested, and analyzed the code base for vulnerabilities. Most critical issues are uncovered in this phase.
2. Peer Review Testing and Analysis — Kava’s community of advisors, validators, and 3rd party auditors are invited to review the code base. A special thanks to Jack Zampolin, Sunny Aggarwal, Federico Kunze, and Alexander Bezubchuk from the tendermint team for their hands-on help here.
3. 3rd Party Audits — CertiK and BHarvest were enlisted to conduct formal audits on the code base.
4. Governance Review and Adoption — Kava’s validator/holder base can review the code before the final upgrade occurs.
5. Official Upgrade — Kava’s validators upgrade the software adding the new features.

Please note that despite rigorous testing and review, any newly deployed software always has a chance for unforeseen issues. The community should closely monitor the system in the weeks to come and be ready to action should an issue arise.

Full Features of Upgrade:

Active Modules

1. Auction — a module that handles the creation, bidding and payout of different auction types that are needed for Kava’s lending platform to function. These include surplus auctions, debt auctions, and surplus reserve auctions.
2. BEP3 — The module implements the BEP3 protocol for secure cross-chain asset transfers between Kava and other BEP3 compatible chains, such as Binance Chain. Transactions are witnessed and relayed between the two blockchains by Binance’s BEP3 deputy process. The deputy maintains an address on both chains and is responsible for delivering tokens upon the successful completion of an Atomic Swap. Learn more about the BEP3 deputy process here.
3. CDP — Stores and manages collateralized debt positions. A CDP enables the creation of a stable asset pegged to an external price (usually US Dollar) by collateralization with another asset. Collateral is locked in a CDP and new stable assets can be minted up to some fraction of the value of the collateral. To unlock the collateral, the debt must be repaid by returning some stable asset to the CDP at which point it will be burned and the collateral unlocked. Pegged assets remain fully collateralized by the value locked in CDPs. In the event of price changes, this collateral can be seized and sold off in auctions by the system to reclaim and reduce the supply of stable assets.
4. Committee — a governance module that allows groups of accounts to vote on and enact proposals without a full chain governance vote. Certain proposal types can then be decided on quickly in emergency situations, or low risk parameter updates can be delegated to a smaller group of individuals. Committees have members and permissions. Committees are ‘elected’ via traditional gov proposals — ie. all coin-holders vote on the creation, deletion, and updating of committees.
5. Incentive — a module that allows for governance controlled user incentives for users who create stable assets by opening a collateralized debt position (CDP). Governance proposes an array of collateral rewards, with each item representing a collateral type that will be eligible for rewards. Each collateral reward specifies the number of coins awarded per period, the length of rewards periods, and the length of claim periods. Governance can alter the collateral rewards using parameter change proposals as well as adding or removing collateral types. All changes to parameters would take place in the next period.
6. Kavadist — Module that allows for governance controlled minting of coins into a module account. Coins are minted during inflationary periods, which each period have a governance specified APR and duration. This module does not provide functionality for spending or distributing the minted coins.
7. Pricefeed — Module that handles the posting of prices for various markets by a group of whitelisted oracles. At the end of each block, the median price of all oracle posted prices is determined for each market and stored.
8. Validator-vesting — a Cosmos SDK sub-module that defines a new type of vesting account, ValidatorVestingAccount. This account implements the Cosmos SDK VestingAccount interface and extends it to add conditions to the vesting balance. In this implementation, in order to receive the vesting balance, the validator vesting account specifies a validator that must sign a given SigningThreshold of blocks during each vesting period in order for coins to successfully vest.

New Tools

1. Auction bot — Client software for running an auction bot on the kava blockchain. Learn more here.
2. Chainlink Price Oracle — Client software for running an oracle on the kava blockchain. Learn more here.

Full documentation can be found here: https://docs.kava.io/

Want to Get Involved?

1. Help USDX liquidity grow! Become a USDX minter, earn rewards. Learn more here.
2. Participate in liquidation auctions and keep Kava stable. Here’s how: here.

Want to get in contact?

For all partnership, press, and other inquiries please email hello@kava.io.

About Kava:
Kava is a multi-asset DeFi platform that offers stablecoins, loans, and other financial services for users of major cryptocurrency assets including BTC, XRP, BNB and ATOM to name a few. The Kava platform has two types of tokens, the KAVA token and the USDX stablecoin where the KAVA token is the native token of the Kava blockchain integral in the security, governance, and mechanical functions of the platform. Users can collateralize their crypto assets in exchange for Kava’s stablecoin, USDX. USDX is the highest earning USD denominated account available for modern investors, offering superior yields without additional risk, compared to traditional alternatives like checking and savings accounts that only deliver miniscule returns.

Stay in touch!

• Follow us on Twitter: https://twitter.com/kava_labs
• Join the conversation on Telegram: https://t.me/kavalabs
• Checkout our code: https://github.com/kava-labs

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.

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