There are several cryptocurrency tokens in the market right now and many of them are currently part of the so-called decentralized finance (DeFi) projects. If you are wondering “What is KAVA?” then we will have the answer in this post.
We are going to share with you What is KAVA, all the things you need to know about this virtual currency and how it became so important during this year. Furthermore, you will also be able to know all of its features, how this virtual currency is used and many other things.
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Disclaimer: this post should not be considered investment advice. This is only for educational purposes only. Never invest more than what you are able to lose and always ask for information to your professional financial advisors. We are not financial advisors.
KAVA is one of the most popular DeFi projects in the world. This blockchain platform is allowing users to get decentralized finance solutions such as borrowing and lending, stablecoins and many other things.
Their motto is “Earn High-Yield On Your Crypto.” This is indeed similar to what other crypto projects are already offering in the DeFi market. The goal is to help users be able to have access to financial solutions in a decentralized manner without having to go through traditional financial networks.
This cross-chain decentralized solution is currently operating as a “bank” for virtual currencies. Users can get connected to stablecoins, loans and borrowing and other accounts that would allow you to get the most out of your crypto.
Although there are some companies and services already available in the market, we are usually talking about centralized solutions such as Binance. Binance is allowing users to borrow and lend funds, among other things, but you are not the custodian of your funds.
To understand What is KAVA, we also need to understand what its features are and how they work. We can start with its Synthetic leverage solution. Users can swap USDX (the stablecoin that was created by KAVA) for collateral and take another loan. You can, in this way, create a synthetic long position in the market.
You can also get rewarded with their incentive program. Those early adopters can provide liquidity within the KAVA ecosystem with the USDX stablecoin. This would unlock the Incentive Program and the rewards related to it (~$85 million in KAVA tokens that will be available for the next three to four years).
Take into consideration that users can borrow only 67% of their locked balances using the USDX virtual currency. The paid interest is going to be distributed to USDX holders as stability fees.
You can also use the USDX stablecoin in order to process payments and pay for goods and services if accepted. Everything can be used and accessed using the KAVA.io site. You will also have all the information about the locked balance you have, the virtual currencies you are holding and many other things.
KAVA has been built on the blockchain development platform Cosmos SDK and it works with a protocol known as Tendermint-based Proof-of-Stake that includes Byzantine Fault Tolerance (BFT), instant finality and also increased security.
KAVA has been traded in the market for around a year and it has moved from a market capitalization of $1.6 million n March to $171 million in August this year. In terms of price, the KAVA digital currency moved from $0.35 in March this year after the COVID-19 sell-off to $5.5 per coin.
Nowadays and at the time of writing this post, KAVA has a price of $2.09 and a market valuation of $69 million. This makes KAVA the 118 largest virtual currency in the world but one of the most unique DeFi coins in the market.
Now we can have a clear answer about “What is KAVA?”, how it works and how it can help the entire DeFi ecosystem to expand all over the world. The team behind KAVA created a great solution that is helping users from all over the world to have access to DeFi solutions.
Currently, KAVA is not among the top 100 largest virtual currencies in the world but it definitely could become one in the near future if it continues to grow as it has been doing this year.
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