Kava

Overview

Kava is a Layer 1 blockchain that hosts a suite of DeFi protocols. It stands out for its ability to connect the Cosmos ecosystem to Ethereum, facilitating communication between the hundreds of dapps on both networks. Kava is built on the Cosmos SDK and Tendermint protocol, and it offers a stablecoin mint similar to MakerDAO, a lending protocol akin to Compound, and a DEX comparable to Uniswap v2. Kava’s native token, KAVA, is used for voting, staking, and as a last resort system in situations where the system is undercollateralized.

History

Kava’s journey began in 2017, with the vision of becoming the Coinbase of DeFi by stripping away all complexity and making it easy for anyone to participate in DeFi. In April 2020, Kava’s testnet-5000 went live, supporting BEP3, a protocol for securely transferring assets between Binance Chain and Kava via Atomic Swaps. In August 2020, Kava announced strategic cooperation with Injective Labs, creators of Injective Protocol, the first Layer-2 derivative DEX platform. The cooperation brought Kava’s lending facility and stablecoins to users of the Injective DEX. In March 2022, KavaDAO launched a $750 million developer incentive program, distributing 62.5% of all block rewards to developers building on the Kava Ethereum and Cosmos Co-Chains.

Features

Kava’s main features include a stablecoin mint, a lending protocol, and a DEX. The Kava Mint allows users to deposit their crypto assets in exchange for Kava’s stablecoin, USDX. Depending on the asset deposited as collateral, users can take out a certain proportion of that as a loan in USDX. When a loan in USDX is taken out, users are rewarded with KAVA tokens. Kava Lend is similar to Compound, where users can supply their asset to earn a reward while it is lent out to borrowers. Kava Swap, similar to Uniswap v2, follows a constant function AMM.