718
views

The Kava Platform Review- A Comprehensive DeFi Cross Chain Platform

After a successful Binance IEO, Kava was launched in the last quarter of last year. Since then, the platform has been causing a fuss in the DeFi industry, and it’s projected to transform the entire crypto industry.

The project aims to create the world’s first dedicated DeFi platform that will offer collateralized debt and stablecoins for all the leading crypto assets. Cosmos powers the project, which is built on the Tendermint core. Over 100+ business entities worldwide support Kava, including renowned crypto funds such as Arrington Capital and crypto projects such as Cosmos and Ripple.

This review will discuss the Kava platform features, with insights on the team, products, long term cases, and the adoption potential.

Kava Overview

Kava is the world’s first dedicated DeFi platform offering collateralized debt and stablecoins to owners of significant crypto assets (BTC, BNB, ATOM, XRP, etc.). The platform allows users to collateralize their crypto assets in exchange for Kava’s stablecoin-USDX. The platform encompasses two tokens: KAVA and USDX. KAVA is a governance and staking token that functions to secure the network and is also used for voting in governance. The USDX is an algorithmically maintained stablecoin backed by crypto asset collateral. Users enter collateralized debt positions (CDPs) after locking their cryptocurrency and receive USDX stablecoins in return.

In many ways, Kava can compare to Maker DAO since it offers a similar service. The significant difference between the two platforms is that whereas Maker supports only ERC-20 tokens, i.e., ETH, Kava offers collateralized debt positions on any crypto coin.

Kava’s most notable product is the Kava Switch- a decentralized fast-finality blockchain that supports interoperable payment channel networks. This product is the first currency interface to the Interledger protocol and allows users to swap cryptocurrencies p2p without much trust.

Kava is also closely related to Cosmos since the Tendermint consensus engine-similar also powers it to Cosmos. Kava is built using the Cosmos SDK is a Proof-of-Stake blockchain that allows users to stake tokens and participate in the network as validators to provide governance.

The Technology Behind Kava

Kava, being a Collateralized Debt Position(“CDP”), leverages Interledger Protocol (ILP) technology to make it possible for users to exchange value between multiple crypto-assets. For instance, ETH and XRP on its mainnet.

KAVA blockchain uses the Tendermint PoS protocol operated by known validators. The top 100 validators provide consensus-based on the stake sizes. The block time on the KAVA blockchain is 1-3 seconds and uses the 33% BFT consensus percentage.

How Kava’s CDP Platform Works

Kava’s main product is its CDP Platform, which is projected to be launched on its Testnet in the first quarter of 2020. The CDP platform will provide means where users will collateralize their crypto assets and receive USDX in return.

The CDP Platform functions in a very similar way to Maker DAO. The main difference, however, is that the Kava CDP Platform allows users to collateralize several different assets apart from just Ethereum.

The functioning of Kava’s CDP platform is a process that can be categorized into five steps. There is also a sixth step if the debt-to-collateral value falls beyond the specified threshold. The steps are:

  1. Deposit Crypto– The first step is to deposit crypto to the Kava Platform. This is done through a web portal where users connect their wallet to the Kava Platform and deposits directly.
  2. Create CDP- After a successful deposit, the platform accepts the cryptocurrency where it is locked in a smart contract as collateral.
  3. Create a Stable Coin– The user is then issued a stablecoin loan (USDX) from the platform based on their CDP value.
  4. Close CDP– Users can repay their debt with a stability fee to unlock their collateral at any given time.
  5. CDP Auction– The system automatically liquidates (burns) all USDX stablecoin when the debt-to-collateral value drops below a specified threshold.
  6. Crypto Returned– Once users pay their debt, the system burns the stablecoin, and the user can access their collateral.

Kava Platform-Key Features

  • Multicollateral Debt Positions- The Kava Platform accepts several crypto assets as collateral, including XRP, BTC, BNB, and ATOM.
  • Self-issues Loans- Users can instruct the platform to issue loans to themselves. There is no need for a counterparty or credit score. It’s a decentralized finance platform that has no central authority.
  • Stable-Coin- The loans are issued to the user in a USD-pegged stable coin USDX.

Kava Products- The KAVA Token

The KAVA token runs the platform, and the supply is capped at 100 million. KAVA token has two primary use cases- governance and staking validation.

Regarding governance, KAVA functions in a similar way to the MKR token in the Maker Dao Ecosystem. Owners of KAVA are empowered to vote on proposals to change the blockchain and system parameters when necessary. These parameters include changes in USDX’s total supply, the types of collateral accepted on the platform, and the collateral to debt ratios, among others.

KAVA employs the Tendermint consensus mechanism meaning that users can delegate their voting rights to validators, secure the network. In exchange, users earn fees from the transactions and stability fees payable when closing the CDPs. The fees collected are usually dependent on the staked amount of KAVA. The APR for KAVA validator rises to a maximum of 20% when the staked amount is low. However, it drops to a minimum of 3% if there are many users on the platform. Users running the validator nodes usually charge an additional commission for their services.

The Kava Dev Team

Kava’s development team had been working on the project since 2017 before its launch last year. The team is led by the CEO and co-founder, Brian Kerr.  Scott Stuart is the Chief of the Product and co-founder of the project.  Ruaridh O’Donnell is the blockchain development lead and also the third co-founder of Kava. Kevin Davis is also part of the Kava Team and is the Lead Engineer with extensive experience in Data Science. The team is quite open and interacts extensively with the community through the Kava Labs telegram group and an official Twitter account.

KAVA Supported Exchanges & Wallets

KAVA currently supports multiple exchanges – Binance, MXC, Bitmax, Biki, and Bilaxy are some of the supported exchanges. On Binance, users can trade against Bitcoin, USDT, and Binance Coin, whereas on Bilaxy, you can only trade against Tether.

On to the supported wallets, KAVA is built on Cosmos; thus, users can comfortably use all wallets that list ATOM, i.e., Lunie and Cosmotation. The Kava team is also reportedly working on deeper Trust Wallet integration, with KAVA staking already available on Trust Wallet.

Kava Platform: Development & Roadmap

Since its mainnet launch (Q3 2019), Kava has undergone extensive development evidenced by intense coding activity on the Kava Labs GitHub, which has enabled the project to reach crucial developmental milestones. In 2020, Kava has laid a comprehensive roadmap that began with the CDP Testnet on February 5, 2020. Their 2020 roadmap looks as follows:

  • Q2: Cross-chain assets in CDP system on mainnet
  • Q2: Integrate custodial BTC Peg into CDP system Testnet.
  • Q3: Integrate both custodial and non-custodial BTC Peg into CDP system mainnet.

2020 already looks like a busy year for the project, and it will be essential to see whether these milestones will be met in time. The development of these milestones will be posted on their official blog.

Final Thoughts on the Project

Kava is indeed an excellent DeFi project poised to transform the crypto industry for the better. Kava offers two main products: Kava Switch and CDP Platform. Kava switch allows users to swap cryptocurrencies based on different blockchains instantly. The CDP platform enables users to make collateralized loans based on several different cryptocurrencies. Unlike Maker DAO, which only supports ETH (ERC-20 Token), Kava can support several cryptos to the advantage of owners of a diversified portfolio. Kava’s mission is to provide DeFi benefits to users owning assets that may not be supported by other DeFi platforms, e.g., BTC.

Bitcoin live price
Btc
Bitcoin
$28.888
price
0.13812%
price change
BUY NOW

Thanks to Kava, accessing DeFi for different assets is no longer a challenge with a user-friendly interface and a supportive team. Nonetheless, the project is still at very early stages. Its success will be based on the project’s ability to uphold decentralization by employing a broad range of validator and the platform’s ability to accumulate enough liquidity to keep USDX stable.

Stay up to date with our latest articles

More posts

Volt Inu (VOLT) – Providing Passive Rewards for an Entire Army of Users

Volt Inu (VOLT) is a hyper-deflationary token seeking to help users diversify their investments across several asset types. Its goal is to build a loyal community, the VOLTARMY, whose members will have access to a growing ecosystem of assets and products, including NFTs, reflections, merchandise, and a P2E game. The meme-coin trend produced several projects with varying degrees of success and popularity in recent years. For instance, some coins like Shiba Inu made it into the top-10 cryptos by market…

HyperEarn – Encouraging an Active Lifestyle through Blockchain Technology

You'll be able to enter the latest trendy movement, "Move2Earn," using the HyperEarn token. There are many ways to get money with HyperEarn. You may run or sleep or even watch advertising to collect rewards.  With this quick introduction on our minds, let's get right into the core of today's review. We will treat HyperEarn neutrally in the article, and we urge you to do your own research before investing. A Closer Look into HyperEarn’s Ecosystem The HyperEarn platform relies…

Viubank: Earn Interest with Highest Crypto APY Through Fixed Deposit Receipt

An innovative new financial service called Viubank offers customers a way to earn interest on their long-term savings accounts. The concept depends on the cooperation with ELG bank, which brings together traditional and crypto-based financial expertise. About ViuBank Viubank is an innovative banking initiative promising simple access to fixed deposits that pay set interest rates. Depending on your preference, you can get daily, weekly, or monthly benefits. Thanks to its Vanuatu banking license, every depositor can open an account on…

RodeoCoin – Supporting the Western Lifestyle through Crypto

RodeoCoin is a hyper-deflationary token running on Binance Smart Chain seeking to reward its active users with BUSD reflection rewards. The project’s ultimate goal is to build a Community Wallet supporting the western lifestyle and community-oriented initiatives, including promoting talents in art, sports, and music. This short RodeoCoin review looks closely at one of the most recent projects to surface in the market. Read on to discover its features, tokenomics, and roadmap! What is RodeoCoin? RodeoCoin evolved from a group…

Shazu – Channeling the Ninja Abilities within NFT Collectors and Crypto Enthusiasts

Shazu is a community-driven project featuring a deflationary token, SHAZU, and a collection of unique Ninja NFTs. Its goal is to help users increase their financial freedom through reflection rewards, staking opportunities, and digital collectibles. This short Shazu review looks closely at one of the latest projects to surface in the cryptosphere. What is Shazu? Shazu is a project seeking to grow through its community while rewarding its members at the same time. It features a deflationary token on the…

WinWinCoins Will Make Crypto Trading More Accessible for Everyone

WinWinCoins is an innovative blockchain project providing a next-gen AI robot trading solution to help investors increase their profits. Its goal is to build an advanced, democratic platform easily accessible to everyone. This way, even newbie traders with little market knowledge can have a positive experience in cryptocurrencies. The WinWinCoins team believes it can accelerate crypto adoption by providing legitimate trading tools available to everyone. To this end, its trading bot could help eliminate losses and increase access to profitable…

SafeSwap Deploys on the Polygon Network to Allow the Farming and Staking of SSGTX

SafeSwap, a decentralized crypto exchange platform, has recently deployed on Polygon, previously known as the Matic Network, a scaling solution for public blockchain networks.   The integration of the Polygon chain by SafeSwap aims to revolutionize the DeFi industry by allowing the farming and staking of SafeSwap's token, SSGTX. The partnership enables users to exchange information without losing ownership or control in the staking and trading industry.  The main objective of SafeSwap is to empower traders and liquidity providers with an easy-to-access financial…

API Inu – A Blockchain Service Suite Joining the Meme Coin Hype

The meme coin hype is leading to the creation of more creative projects revolving around this type of cryptocurrency. In this context, API Inu is one of the latest examples, with a combination of blockchain data services and a meme token. Using TradingView's professional charting libraries, the project wants to provide simple indicators for beginner traders. Furthermore, the team wants its community to enjoy access to essential data like liquidity, trading volume, risk exposure, and fear vs. greed indicators.  API…

Ragdoll Cat NFT – A New Decentralized Project to Help Cats in Need

As the blockchain market grows, we learn more and more about how this technology can influence our daily lives. Ragdoll Cat NFT is a new project that puts together the interest for crypto, decentralized communities, and cats. In the following sections, we wish to report, in a neutral way, all the main features of this new initiative. After describing the ecosystem designed by the team, we’ll include some of the future developments that we should expect from the project. About…

Tiny Colony Review – The First-Ever Expansive Pixelated Tinyverse

Tiny Colony is a pixelated ecosystem of games, events, and experiences built on Solana that allows users to play without requiring NFTs. It features the first-ever construction and management blockchain game and benefits from the backing of iLogos, the prominent developers of Angry Birds 2, and regular partners of Disney, Ubisoft, EA, Rovio, and DreamWorks. The project is currently in full swing after striking partnerships with Fractal Marketplace, Twitch creator Justin Kan, and popular YouTuber iJustine. Furthermore, the game raised…