AMA Session with Aaron Choi from KavaSwap (SWP)
Guest: Aaron Choi, VP Global BD of KavaSwap
Host: Iris of MEXC Global
Iris: Today, we’re honored to have Aaron Choi, VP Global BD of KavaSwap, to our community to give us a more intuitive introduction to their unique project.
Aaron, welcome. Would you like to say hello and introduce yourselves?
Aaron: Hi everyone, I’m Aaron, VP of Global BD at Kava. I’ve been at Kava since late 2019, and have been working in the cryptocurrency industry for a few years now. Before Kava, I was working in the exchange business.
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Kava Blockchain Explorer：https://www.mintscan.io/
Questions about the project
Iris: What is Kava Swap? Can you share with us more in detail?
Aaron: Sure I’m sure everyone is excited to hear more!
Kava Swap, the first cross-chain AMM application for the Kava ecosystem, successfully launched on August 30 and is positioned as the world’s first cross-chain liquidity hub connecting DeFi, blockchain and financial services.
The Kava platform currently has hundreds of millions of dollars of assets under management, but one bottleneck before Kava Swap launched, was that users could only obtain Kava-supported assets with non Kava-supported assets via centralized exchanges, and then transfer them across chains to use DeFi services.
Kava wanted to create a one-stop DeFi ecosystem with no barriers to use and the ability to trade, lend, and mine at any time, which is the fundamental reason we went live with Kava Swap.
Kava Swap, because it runs on the Kava chain, can enjoy all the resources accumulated in the Kava ecosystem upfront as well as its on-chain security, and create revenue for users in synergy with Kava Mint and Kava Lend, which are also currently running on Kava.
This effectively solves the seamless transaction of assets on the chain, avoids friction when users transfer assets cross-chain, and helps the asset conversion and velocity of exchange within the ecosystem.
On Kava Swap, users can execute their own transactions, add liquidity, and use our product to generate revenue based on their trading or arbitrage needs.
Iris: What triggers you to launch Kava Swap? What are some of the real-world problems/ pain points that Kava Swap aims to solve?
Aaron: The official launch of Kava Swap effectively solves the need for onchain liquidity. In the past, when users needed to replenish collateral or switch supply assets depending on platform revenue when they borrowed on Kava Mint, they had to go to a third-party platform to exchange and then cross-chain back to Kava, with the potential time-risk in between.
With Kava Swap, users can complete the process of minting, lending, trading, and earning through the liquidity pool in Kava in a one-stop shop, which can be said to be a perfect combination of users’ trading needs upstream and DeFi needs downstream.
All three products on the Kava DeFi platform can currently be used independently or in tandem. Users can perform multiple nested mining strategies on the Kava Mint and Kava Lend platforms,
such as lending our stablecoin USDX, minted from the Kava Mint platform, to Kava Lend for triple rewards of KAVA, HARD and SWP, and staking the resulting KAVA rewards for liquidity.
As well as adding liquidity rewards and other assets to the Kava Swap liquidity pool, or borrowing assets from Kava Lend to add liquidity into Kava Swap for LP rewards.
The Kava Lend USDX supply yield peaked at around 140% when it first launched. With the increase of participating users, it still remains at around 100%. The yield of Kava Swap’s newly launched liquidity pool is even higher at around 350%.
Iris: What are some of the challenges that Kava Swap currently faces? How do you aim to solve them?
Aaron: DeFi is one of the most talked about areas in the blockchain industry from 2020 to 2021, and has withstood the test of the market and users, proving that DeFi is not a bubble but a real solution to the problem of efficiency in the use of users’ money.
Iris: That’s true👍
Aaron: Although there are new fads attracting attention because of innovation in the industry, DeFi’s growth rate has been steadily upward, which is inseparable from the continuous education of all participants.
Kava has focused on cross-chain DeFi since 2018 because we believe that no matter how the industry develops and innovates, efficiency of funds will always be an immediate need in the financial sector. Therefore, Kava’s main strategy is to follow the product roadmap we planned from the beginning, and not to cater to a certain stage of market cycles.
Kava’s goal is to help users around the world utilize their assets without barriers and maximize their income opportunities.
However, there are still some bottlenecks in DeFi, such as the recent security incidents that occur more frequently, as well as the scalability of the cross-chain technology itself and tricky user experiences.
The next phase of Kava’s development is focused on expanding the scale of the Kava platform, product performance and asset liquidity.
In terms of security, Kava has been applying strict internal and external audit processes and has also created the Kava SAFU fund to cover losses suffered in the event of a potential security incident.
As technology innovates, so will hackers’ techniques, but security will always be one of the most important issues we, including the wider industry, need to focus on.
Iris: Are there any exciting news or updates with regards to Kava Swap that you would like to share with the users?
Aaron: oh yeah! super exciting stuff happening now 😄
Kava Governance Proposal #61 passed and it approved the first decentralized trading competition during the week after Kava Swap mainnet launch. We have a prize pool of $100,000 worth of SWP tokens.
Currently there is a competition based on volume which will share a prize pool of $57,000, and there is also a random draw for 170 participating users that will each share $250.
Iris: Wow grand prize pool!
Aaron: The event ends soon (next day or so) so if you want a chance to win, start using the KavaSwap product today!
Also, SWP is now available on MEXC so everyone can get started in the KavaSwap ecosystem by getting that first!
Iris: Yep! Quick access to trade: https://www.mexc.com/exchange/SWP_USDT
Iris: If you were to summarize your project in ONE word, what would it be? Why?
KavaSwap really is about injecting liquidity into the Kava ecosystem for decentralized trading onchain.
This makes Kava a much more efficient and valuable Layer 1 blockchain which provides value for all KAVA holders as well as benefiting SWP holders because of the fees generated one the Kava chain!
Q1. Does KavaSwap support the stake/farm on the $SWP token then where can I do the stake/farm and has the $SWP token audited ?
Aaron: Yes we do support farming of SWP within the Kavaswap product. This is available on our chain, within our supported wallets (TrustWallet and Cosmostation) and also at kava.io/swap. The $SWP token has been audited by CertiK and this is publicly available on their website!
Q2. Is this platform suitable for Crypto beginners? Or does it only appeal to professional users?
Aaron: We definitely are targeting a lot of newer crypto users with creating easy to use applications that are safe. Institutional and professionals will find our product much easier to use as they will understand how to maneuver on our blockchain much faster.
Q3. Nearly 80% of investors only focus on short-term token price instead of understanding the real value of the project. Can you tell us the motivations and benefits for investors to hold your tokens in the long term?
Aaron: We incentivize long term holding of our token by many different ways. One way is the way we are distributing the token via staking rewards and liquidity rewards to a large distributed userbase. The tokenomics of SWP do not centralize to large investors which could have an adverse effect on price in the short term.
Another way is that liquidity rewards are locked for 1 month to 1 year, which decreases the supply on the market which will not shock the market negatively. This incentives longer term holding of tokens which allows for healthy demand to build for SWP organically.
MEXC Global: https://www.mexc.com/