Kava Overview
What is Kava?
Kava is a Layer-1 blockchain with co-chain architecture combining Ethereum and Cosmos ecosystems into one scalable network. The platform combines the flexibility and speed of Ethereum smart contract development and the interoperability of Cosmos SDK. The Kava Network was created to empower developers to build for Web3 and next-generation blockchain technologies. Moreover, Kava’s architecture enables the free flow of users, assets, and projects between Kava and other ecosystems powered by Tendermint consensus.
Kava upcoming updates
At the moment of writing, the upcoming update is scheduled for Q3 2022. It is going to include Kava 11 Mainnet Launch with liquid staking, Kava earning yield optimizer features and the opportunity of signing SDK transactions for Ethereum assets in Metamask. At the same time ETH Bridge and Kava Foundation will be launched. Kava’s team is currently working on Kava Network GameFi, NFT Incentive Program and BNB Chain Bridge. In 2023 Kava is planning to launch CosmWasm support, which will bring protocols and smart contracts developers from across the Cosmos to the Kava Network. Also in Q1 a native BTC bridge will be launched.
Kava team
The developer of Kava blockchain is Kava Labs. The CEO of Kava Labs is Scott Stuart. He co-founded Kava Labs in 2017.
Senior Engineering Manager in Kava Labs is Kevin Davis. At first he worked in environmental studies, but then turned to data science. In 2016 Kevin got his Master Degree in Data Science in UC Berkeley School of Information and 2 years later began working for Kava as Lead Engineer.
Interim Marketing Director in Kava is Tristan Willis. Having Bachelor Degree in Social Anthropology, he has the experience of working for Moolay Media as Director of Operations, Energy Core as Content Writer and Lemonade as Blockchain Marketing Consultant. Tristan joined Kava Labs team in September 2021.
Kava token
Kava is a proof-of-stake security and governance token of the Kava Platform, which also has mechanical functions. It was launched in 2019 on the Binance Ecosystem. Kava holders can earn from 3% to 20% by staking depending on the amount of staked. The Genesis Supply of tokens was 100 million Kava.
There are three use cases of Kava token. Firstly, it ensures security for stakers because validators risk losing their Kava incase of strict slashing conditions such as failing to ensure high uptime and double signing transactions. Secondly, holders of Kava token can also vote on proposals considering the future of the Kava Network. Thirdly, Kava tokens are used as incentives for projects, which scale the network and contribute to its development.
Besides Kava token, the platform also has a stablecoin USDX and HARD coin, which is a governance token of Kava Lend.
Kava’s Oracles
We have already explained the main essence of oracles in our previous article on UMEE, which you can find here — (https://medium.com/stakewolle/umee-review-99dc082fc). Oracles provide blockchains with accurate market data and allow developers to build more advanced financial products. In March 2020 Kava announced its alliance with a decentralized Oracle solution provider Chainlink. There are three core modules on Kava — Pricefeed, Auction, and CDP. Pricefeed provides the data essential for Auction and CDP functioning. Active prices for each asset from oracles are aggregated and the medium price becomes the price for the whole CDP system. And this price controls the core functions of the platform.
Kava Rise
Kava Rise is a 750$ million developer program. Developers can deploy on Kava and get rewards for this. All projects must register their protocol with DeFi Llama and have a minimum Total Value Locked (TVL) of US$10,000.
Comparing Kava with other platforms
Besides Kava, there are also two most well-known lending platforms in the Cosmos Ecosystem — SiennaLend and Umee, about which you can read in our previous post (https://medium.com/stakewolle/umee-review-99dc082fc).
As follows from the table, Kava Lend has the lowest liquidation threshold and the lowest maximum Borrow APY. In comparison to both UMEE and SiennaLend, at the moment of writing, the Kava Platform doesn’t support Ethereum tokens, such as USDT, USDC, DAI, and ETH, however the platform has USDX. However, it is going to launch ETH Bridge in Q3 2022.
Kava’s functionality
Kava Swap
On Kava Swap, users can exchange USDX on any of the other coins on the Kava App.
Kava Mint
Kava Mint is a service via which you can mint USDX using one of the following currencies: BUSD, BNB, BTCB, XRPB, KAVA, HARD, SWP, and BUSD-B.
Kava Lend
Users can supply Kava tokens to the borrow pool to earn more APY and to borrow any coin against their collateral.
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