KAVA is a decentralized lending platform and stablecoin that provides open access to loans and leverage. Powered by an array of unique modules – cross-chain bridge and oracles for price reference – KAVA allows access to loans at all times with open terms and flexible repayment terms.
The platform’s core product is a collateralized debt position (CDP). Cryptos deposited are locked away into smart contracts and transformed into USDX tokens backed by a pool of deposits.
KAVA – Decentralized Lending Platform
Kava is a decentralized lending platform offering various services. With high levels of transparency and security as well as low fee structures, this platform is highly scalable to handle large volumes of collateral.
CDP allows users to borrow USDX with their crypto assets and borrow it at any time backed by the original asset; when closing a position on a CDP can also lock the original crypto asset as an added safety precaution and burn a small amount of USDX as part of its stability fee.
The KAVA project boasts an experienced team, led by co-founder and CEO Brian Kerr. Their development roadmap includes the implementation of Inter-Blockchain Communication which will allow integration with other blockchains and DeFi platforms; community applications will also be supported by this decentralized network. Furthermore, their price oracle system uses decentralized validators to determine accurate asset prices in real time.
KAVA – Stablecoin
KAVA protocol offers users a decentralized lending (DeFi) solution with various crypto assets, enabling users to engage in decentralized lending (DeFi). Deposit your digital assets into the system, which then locks them away in a smart contract as collateralized debt position – they then receive USDX stablecoin in return, which they can then use as a loan collateral.
The USDX token is the native staking asset of Kava platform and serves as its stablecoin to denominate loans and accumulate savings interest. Furthermore, users are able to accrue additional savings interest with this asset class.
Store KAVA securely in an official network wallet – an accessible PC-based application designed for this purpose – or you could opt for hardware wallets like Ledger Nano S or X to protect it from online threats. KAVA can be traded via popular exchanges like Kraken and WazirX.
KAVA – Inter-Blockchain Communication
Kava is an inter-blockchain communication tool that enables multiple blockchains to share data and transactions among themselves, which could enable decentralized lending or financial services across different platforms. This technology represents a huge advance in blockchain development that could have significant implications in the DeFi space.
Kavas’ system operates by enabling users to deposit cryptocurrency assets into smart contracts that are automatically collateralized with USDX stablecoin and are then automatically lent out in exchange for the currency deposited. Closing CDP requires depositing at least enough assets to cover debt plus paying a lending fee – once this happens, Kavas’ system will burn any loaned USDX before returning initial collateral back into user wallets.
KAVA offers on-chain governance via token voting tools; these tokens serve as votes on proposals and changes to essential network parameters like supported assets/dApps as well as debt limits on these assets. Furthermore, its network has never been compromised or breached.
KAVA – Interoperability
KAVA offers several features to decentralise finance and eliminate intermediaries, including stablecoin, cross-chain interoperability and on-chain incentives. Furthermore, their team is dedicated to regular updates which improve functionality and security.
This system operates by enabling users to deposit supported crypto assets into smart contracts that will then mint USDX – an stablecoin used as collateral when lending and borrowing on the KAVA platform. Furthermore, its protocol also enables them to stake KAVA, rewarding validators who verify network operations while protecting it.
KAVA differs from other stablecoins by not relying on centralised price oracles; rather, its platform uses a community of validated nodes to determine prices and ensure all participants use identical data. This makes its system tamper-proof while offering more accurate asset valuation and decreasing volatility; Ledger and Trezor are supported.