What is KAVA?

Kava (KAVA) is a cross-chain DeFi platform that provides collateralized loans and stablecoins to users of major cryptocurrency assets, including BTC, XRP, BNB, ATOM, etc. KAVA is the governance and betting token responsible for network security and voting for the main parameters. It aims to become a practical DeFi platform by providing a decentralized lending platform and stablecoins compatible with major crypto assets.

The Kava platform has two types of tokens, KAVA and USD stablecoin. KAVA Token is the original token of KAVA blockchain integration in security, administration and mechanical functions of the platform. Kava offers its users major cryptocurrencies with open access to loans, leverage and stablecoins to hedge risks. Meanwhile, Kava’s Stablecoin USDX can be linked, bringing profit to USDX holder. In addition, Kava has the ability to evolve to support a range of new cryptocurrency assets and provide new aggregates and derivative products.

How does the Kava platform work?

Users top up their electronic funds into the platform. Cryptocurrencies will be locked as a form of collateral in CDP. Users will get USDX stable money loans based on CDP value. Users pay loans and fees to unlock collateral. Similar to margin, the system will automatically liquidate collaterals if the payable debts fall below the prescribed level. After the user has paid the debt, the system will burn USDX and the mortgage will be returned to the user.

Features of Kava

Kava brings us the following specific features:

Diversity of loans
The Kava platform supports lending with crypto assets like BTC, XRP, BNB, and ATOM.

Lending without partners
Kava allows users to “issue” loans themselves, creating new USDX based on collaterals that have been loaded and canceled USDX when the user closes his or her debts.

Stablecoin maintenance algorithm
Using the price prediction, Kava automatically auctioned “risky” guaranteed debts to fall below the required level in order to maintain USDX’s stable price against USD.

Benefits of Kava

Reliable
It was built on the consensus of Tendermint. Proven bonded proof of stake.

Interoperable
Kava was built from scratch to allow you to take advantage of the properties you want.

Fast
No more waiting around for blocks to clear. The finite block properties and high throughput allow you to save execution time when it is calculated.

Team

Since 2017, Kava Labs with its blockchain expertise has provided solutions for Ripple, Tendermint / Cosmos, Tezos, MakerDao and many other leading blockchain projects.

The leaders of the group are distinguished and competent names, such as:

Brian Kerr (CEO): Advisor to Snowball and DMarket.io.
Ruaridh O’Donnell (Co-founder): Former engineer & data analyst at Levelworks, Deep Learning expert.
Scott Stuart (Co-founder and head of product): Former CEO of Levelworks, Professional Poker Player.
Kevin Davis (Chief Engineer): Former software developer & data analyst at USDA.
Stan Press (Head of Marketing): Former Head of Collaboration at VY Esports, CEO of Digital and Game Strategies at Magid.
Aaron Choi (Head of Business Development, Asia): Former CEO of GJ Exchange.

Conclusion

Decentralized loans and leverage support: Kava offers users of major cryptocurrencies the ability to open loans, leverage and create stablecoins to hedge risks.
Hedging with Stablecoins: Kava’s USDX stablecoins can be linked, bringing profit to USDX holders.
Kava has the ability to evolve to support a range of new cryptocurrency assets, including derivatives.

You can check KAVA price here.

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