KAVA is one of my favorite DEX & DeFi coins. In fact, KAVA is attempting to shake up the decentralized finance space as it is actually about to break open the world of multi-chain decentralized finance. But the competition in the DeFi space is big, so the question is if KAVA has a chance.
What Is KAVA?
Kava is basically a multi-chain Maker DAO. It offers to give collateralized decentralized loans with stable coins to users of major crypto assets like Bitcoin, Ripple, Cosmos, BNB, and others.
Kava is actually about to break open the world of multi-chain decentralized finance as Kava`s lending platform is compatible with several crypto assets. The first two chains for Kava are Cosmos and Binance.
Multi asset first. Kava is built from the ground up to let you leverage the assets you want.
Through Kava, you can leverage assets with Kava`s CDP (Collateral Debt Position Platform). A collateral debt position is basically a smart contract that holds the cryptocurrency debt and adjusts based on redemptions or issuance. Unlike other Decentralized Finance platforms that require collateral in one or two cryptocurrencies, The Kava platform currently supports four. This makes it much easier for a user to take out a loan.
These major cryptocurrencies also provide access to leverage loans and stable coins that users may want for hedging. Additionally, KAVA allows users to hedge with interests. KAVA is using its own USDX stable coin which can be bonded. This provides USDX holders with a yield.
Last but not least, KAVA has the capability to grow and support a wide variety of new crypto assets like derivates as well as new synthetics.
The benefit of KAVA is that you can unlock the dollar value of your cryptocurrency and use these funds without actually selling your coins. These funds can then be used for paying bills, for hedging your current position with interest or to take on more leverage and buy more crypto. Well, the last option is quite risky and I wouldn`t recommend it, so please be very careful with it.
KAVA vs. Maker DAO
I believe that the KAVA project has possibly the highest potential of really taking on Maker DAO in terms of its market cap and its utility.
Let`s see how KAVA compares to Maker DAO. Both projects offer stable coins for their respective platforms. Maker DAO uses its DAI token, which we can also earn here on Publish0x, and KAVA uses USDX. Both projects have a governance component.
KAVA supports several different assets like Bitcoin, Ripple, Cosmos, and BNB. Maker DAO on the other hand only supports Ethereum. Both projects also differ in their "risk fee".
Maker DAO and its DAI stable Coin have been around for some time and have proven themselves in that period. It is also listed on many different exchanges and you can store it in many different wallets. You can`t say that about KAVA as it is still a quite young project. It still is a low market cap gem, not traded on many exchanges.
The KAVA Token
The Kava Token (KAVA) is deflationary as stability fees paid in KAVA are getting burned. KAVA is also stakable and holders have the potential to earn between 3% and 20% APR, depending on how much is staked in the KAVA network. Less staked KAVA tokens means higher staking rewards to encourage staking.
Kava's price today is $1.29. It has a circulating supply of 27 Million coins and an unlimited max supply of coins. KAVA is currently located on market cap rank #135.
Binance is the current most active market trading KAVA. KAVA started as BEP2 token on Binance Chain and it`s original token sale also took place on Binance. At the moment, you can use Cosmostation Wallet, Lunie Wallet, Trust Wallet, Ledger Hardware Wallet, or Frontier Wallet for your KAVA.
KAVA Team & Partnerships
The company behind Kava is called Kava Labs and the CEO of it is Brian Kerr. Since 2017, the Kava Labs team has used its blockchain expertise to provide solutions to Ripple, Tendermint/Cosmos, Tezos, MakerDao, and many other leading blockchain projects.
Kava Labs is working very closely with big names like Ripple, Binance, or Cosmos. These big collaborations are showing that KAVA is moving on a really serious level.
Nothing in my post is sponsored, it really reflects my own opinion. I am really excited about the potential of KAVA since I have started my research on this project. If you ask me, KAVA is another low market cap gem that I will definitely keep an eye on, because KAVA is actually about to break open the world of multi-chain decentralized finance.
Nevertheless, please keep in mind that my intention in this post is not to replace your own research. Always #DYOR. 👌
I hope I could provide you with some interesting and useful information about KAVA.
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