Kava coins was one of the early platforms for lending. However, it has evolved beyond just a lending project.
So, what is Kava’s current version? How can you own and store KAVA coins? Find out more in the detailed article below from AZCoin.
What is Kava?
Kava coins is a Blockchain built within the Cosmos ecosystem on the Cosmos SDK, similar to Crypto.com, Terra, Binance Chain (not Binance Smart Chain),… Initially, Kava was just a project in the Lending sector with the Stablecoin USDX, backed by popular Crypto Assets such as BTC, ATOM, XRP, BNB…
Highlights of Kava coins
One of the key advantages of Kava is being a Blockchain within Cosmos, allowing it to connect with other Blockchains through the IBC bridge. At the moment, a number of Blockchains have adopted IBC, such as Iris, crypto.com, akash, persistence, Osmosis,…
Following the ecosystem trend, Kava is gradually building the fundamental pieces of DeFi, which include Hard Protocol, Kava Swap, and Kava Protocol itself.
On August 27, 2021, Kava officially renamed its projects to provide users with clearer understanding, and the current Kava ecosystem consists of:
- Lending: Kava Mint (formerly Kava Protocol), Kava Lend (formerly Hard Protocol)
- AMM: Kava Swap
The protocols have new names, but the token governance stays unchanged:
- $KAVA token governs the Kava Platform.
- $KAVA token governs Kava Mint.
- $HARD token governs Kava Lend.
- $SWP token governs Kava Swap.
Kava Mint is a Lending platform similar to Maker DAO, allowing users to deposit assets to mint Stablecoin. While Maker DAO has DAI, the Stablecoin in Kava Protocol is USDX.
Currently, compared to Solana, Binance Smart Chain, and Ethereum, Kava is still considered a relatively young and lesser-known platform.
Another feature of Kava is its own Stablecoin called USDX, similar to Terra’s UST. Although not as developed and with different minting mechanisms, if utilized effectively, USDX could be a key factor for Kava’s growth.
What is Kava’s operating method?
Users can create collateralized loans using various Coins (BTC, ETH, BNB, XRP). These loans can be easily accessed by the users themselves. The loans are provided in USDX, which users can then use to trade assets.
For example:
Users deposit BTC into the platform, which is locked and initiates a CDP (debt position). Then users borrow USDX. If the price of BTC drops below the CDP position, it will be liquidated through auction, or users can repay USDX and interest to get back their BTC.
Note: The loan-to-value ratio on collateral assets is 150%. If it goes above this level, the collateral assets will be liquidated.
Kava utilizes the Oracle system from exchanges like Binance and Coingecko.
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KAVA Project Team, Investors & Partners
Project Team
Kava is developed by Kava Labs.
Investors
In January 2019, Kava received a $1.2M investment from: Lemniscap, Digital Asset Capital Management, Xpring of Ripple, Coil Technologies, 2020 Ventures, Arrington Capital, Hard Yaka, Robot Ventures, UniValues Associates,…
In April 2020, Kava sold about 1-5% of KAVA to Framework Ventures for a total of $750,000. It is known that Framework Ventures has advised Kava on the token inflation model and plans to provide continuous technical support to the Kava team.
Detailed information about KAVA Coins
KAVA functions as the governance token for the Kava.io platform, providing:
- Governance: Participate in voting to adjust parameters within the system, such as initiating USDX, collateralization ratio of CDP assets, prices, and protocol fees.
- Staking and Rewards: Users engage in staking to receive rewards from the platform.
KAVA Key Metrics
- Token name: Kava.
- Short form: KAVA.
- Blockchain platform: Kava chain.
- Token type: Utility and Governance.
- Overall amount: 142,985,860 KAVA.
- Currently in circulation: 81,443,180 KAVA.
Allocation of KAVA tokens
- Initial total supply of 100,000,000 KAVA
- Private sale 1: 30.5%
- Private sale 2: 5.02%
- Private sale 3: 4.93%
- Binance Launchpad sale: 6.52%
- Kava Shareholders: 25%
- Token Treasury: 28.48%
KAVA Coins Token Use Case
The KAVA tokens have various purposes such as compensating Validators and Delegators, covering transaction fees for Validators, participating in system governance by voting on changes to the collateral debt position (CDP) ratio, collateral ratio, and transaction fees, and serving as a currency to maintain the stability of USDX by using KAVA’s price stabilization mechanism inspired by MakerDAO and DAI.
Kava similar project
Terra (LUNA): A blockchain project for e-commerce, Terra creates its own stablecoin (or for each e-commerce platform) for payments and reducing transaction fees. The LUNA Token will help Terra’s coin remain a stable coin.
How to earn and own KAVA tokens
Currently, you can trade to buy and sell tokens on the Binance exchange. Additionally, you can mint KAVA tokens directly on the platform through rewards when staking tokens or through distribution of transaction fees to holders of KAVA tokens.
Wallets for storing KAVA tokens
You can store them directly in Trust Wallet, Safepal Wallet, or keep them on the Binance exchange.
Conclusion
So we have provided you with the latest information on Kava and Kava Coins. What do you think the future and potential of KAVA will be? Comment below or contact AZCoin to share your thoughts!
I am Tony Vu, living in California, USA. I am currently the co-founder of AZCoin company, with many years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
Email: [email protected]
