Kava

What is Kava (KAVA)?

Kava is a blockchain-based software protocol that utilizes several cryptocurrencies to enable its users to lend or borrow assets without having to deal with conventional financial intermediaries.

Overview and Origin of Kava

The formation of Kava, which occurred in 2018, can be attributed to Scott Stuart, Brian Kerr, and Ruaridh O’Donnell. The following year, in 2019, the team managed to raise about $3 million via a public sale that took place on Binance; around 6.5% of its token’s total supply was sold during the sale.

Later on, the team managed to establish a for-profit firm known as Kava Labs, which is responsible for the network’s development. It was in 2020, then, that the lending platform for Kava saw its official launch, where users had the option of borrowing USDX from Kava by locking their BNB tokens.

The Unique Proposition of Kava in DeFi

While Kava may not be the only lending protocol within the industry we know as decentralized finance, it might still be unique due to its being hosted on the Cosmos network, which is largely responsible for its cross-chain operations, or interoperability, and also its scalability.

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The Technology Behind Kava

This section will briefly delve into the technological underpinnings surrounding the Kava Network, namely blockchain and smart contracts.

Blockchain and Smart Contracts in Kava

The ledger that the Kava Protocol stores its transactions within is known as the blockchain, which is essentially this distributed ledger that every node within a network has a copy of, rendering the contents within it immutable.

As for smart contracts, they represent the code underlying the transactions that take place on the blockchain, or, in this case, Kava. They can be further thought of as pre-programmed conditions that, upon fulfillment, can automatically execute what they were programmed to do.

Kava’s Infrastructure and Technical Backbone

In its own words, Kava seeks to blend the developer support found on Ethereum with the scalability or throughput associated with the Cosmos SDK. Consequently, its infrastructure, or technical backbone, will incorporate aspects of both blockchain networks.

Therefore, its most important feature is probably the co-chain architecture it supports, which enables developers to create and then deploy their projects by utilizing either the Cosmos SDK or the EVM execution environments, all while facilitating seamless interoperability between them.

Components of the Kava Platform

Let’s now direct our attention towards some of its other components, particularly the CDP system it has implemented.

The Kava Blockchain: An Overview

It’s worth noting that Kava is also a blockchain in and of itself, and a Layer-1 blockchain at that.

This implies that it is an independent network as opposed to what one would normally expect from Layer-2 blockchains, like Polygon.

Understanding Kava’s CDP System

A collateralized debt position, or CDP, for short, is an emerging automated loan contract that is utilized within the creation of additional “stablecoins” pegged to any fiat currency, such as the US dollar or the Euro. Here, the one lending may put up various cryptocurrencies as collateral so that new stablecoins may be created, or “minted,” to be precise.

For instance, on Kava, users may stake the BNB token as collateral if they wish to mint more USDX, a decentralized stablecoin native to the Kava blockchain.

Kava’s Native Token – KAVA

Let’s now see what Kava’s native token, KAVA, has to offer in terms of utility or functionality.

The Role and Function of KAVA Tokens

The KAVA token, being native to the Kava blockchain, may serve as a medium of exchange among the various decentralized applications found within it, i.e., as payment within their services, among other uses.

The Tokenomic of KAVA

Speaking of tokenomics, the token is currently valued at around $0.7 and has a market capitalization of over $708 million; its fully diluted valuation is worth around the same amount; and it has a daily trading volume of over $18.7 million. As for supply, its circulating supply and total supply are about the same, at approximately 952 million tokens.

Kava’s DeFi Offerings

Speaking of the DeFi services that can be found on Kava, these primarily include lending and borrowing, as stated earlier, along with staking and governance, which we will dive into below.

Lending and Borrowing on Kava

Here, assets may be used as collateral for borrowing other assets, which may then be utilized to receive returns through trading or other DeFi pursuits. So, on Kava, users may borrow USDX or other assets via its lending platform, Lend.

On the other hand, if they desire, they may also lend or supply assets to Kava’s lending platform and earn rewards automatically within HARD tokens, which are essentially Kava Lend’s governance tokens.

Staking and Governance with KAVA

Besides being used as a medium of exchange, KAVA tokens may also be used within the protocol governance and staking features, where they may either run validator nodes themselves or simply bond their tokens to third parties that run their own nodes.

How to Acquire KAVA Tokens on Binance

If you’re interested in acquiring the KAVA token, then there are a couple of exchanges where you can buy it, such as Binance, for instance. So, to buy it there, you will have to undergo several processes. These will include creating your own account, going through KYC, and then making your first deposit, followed by selecting the various options provided to buy your token, and once bought, withdrawing them.

To register your account on Binance, use the link below, which will take you to the registration page using a special Coin-Labs referral code.

Storing and Managing KAVA Tokens

Once you have acquired some KAVA tokens, you might be looking for a secure means of storing or managing your tokens. Currently, the safest option available to users would be cold wallets, since they store your private keys offline, where they will be less susceptible to threats. However, this will likely come with a cost, and it may be expensive.

Hot wallets, on the other hand, tend to be free but less secure in comparison since your funds and keys are stored online, where all manner of threats may be lurking.

Kava’s Position in the Global Crypto Market

Let’s now delve into how the Kava platform fares within the global cryptocurrency market or how it has been performing lately as an investment.

Kava’s Market Performance and Trends

If its native token is any indication, then it has not been performing all that well. The token does not appear to have recovered or gained any significant momentum lately, and sentiments, at least for now, appear bearish. So, whether or not things will change for the better later on remains to be seen.

Kava in the Context of the Broader DeFi Movement

Through its cross-chain functionality, Kava has been one of the many to break the mold when it comes to scalability and interoperability. While it wasn’t by any means the first to accomplish such a feat, when blended in with some of its other features, it might be worth considering within the broader context of DeFi, since it is potentially a significant addition to it.

Kava vs. Other Leading DeFi Platforms

While its services themselves may ultimately not be all that different from what other prominent DeFi protocols have been offering as of late, its emphasis on cross-chain functionality, providing versatile collateral options along with cross-chain swaps, and the Hard protocol, among other features, may distinguish it as one of the key players within the DeFi lending space, potentially elevating its status as a result.

The Community and Governance of Kava

Due to its interoperability, or serving as a bridge between different blockchains, it has managed to find an active developer base for itself that can create various decentralized applications, as well as the users that may like to use such applications.

So, to give that community a voice, it has implemented its own take on governance, allowing anyone engaging with its services to have a say in how things may be run.

Security and Trust in Kava

Let’s now delve briefly into the security measures that one may find on Kava or the steps it has taken to ensure the safety of its users’ funds.

Security Measures and Protocols in Kava

Since it’s based on Cosmos, it utilizes a tendermint proof-of-stake mechanism to secure its network, relying on around 100 nodes acting as validators to verify transactional integrity.

Validators, for their contributions to security, will be rewarded but may also be penalized in the event of any malicious activity detected on their part.

Kava’s Approach to User Safety and Asset Protection

Other security measures that it has undertaken to ensure user safety while protecting their assets include robust encryption systems, regular smart contract audits carried out by esteemed third-party organizations to detect any vulnerabilities, multi-factor authentication, and more.

Upcoming Features and Roadmap

While Kava doesn’t seem to have released a roadmap of any kind for this year or the next, among its more recent developments is the announcement that it plans on releasing v.15.0 of its blockchain on December 7 this year, which seeks to substantially reduce the impacts of inflation or inflation itself on the Kava blockchain.

Conclusion

The Kava blockchain seeks to carve out its own space within the borrowing and lending niche within the DeFi sector. With the implementation of various protocols, such as Kava Lend, Kava Earn, Kava Staking, Kava Liquid Staking, Kava Swap, and more, it has managed to diversify its offerings, not just enabling users to borrow or lend, but to swap, mint, and earn tokens too.

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Therefore, we are not responsible for the investment decision in Kava and the resulting loss.

Kava Basics

Here are some factors that investors should consider before investing in Kava.

Cryptocurrency Features	Kava ()
Publisher or Developers
Headquarters (Registration Number)
Symbol
Platform
Published Date (CMC Registration)	2024-10-02
Max Supply	958,691,258,152,859

Reliability Score of Kava in 2024

These are indexes mesuring the investment reliability of Kava conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 0 Exchanges
Number of Available Pairs Worldwide	1 Pairs
Market Cap of the Cryptocurrency	6,683,329 USD (Rank #1295)

The table above shows the result of investment suitability evaluation for Kava.
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Kava Price

Here are the price and recent trading volume of Kava. (Data of 2024-10-03 00:15:00)

Price Items	Price and Trading Volume of Kava
Kava Price	0.000 USD
Price Change 24h	-5.48%
Price Change 7d	-4.99%
Trading Volume 24h	11 USD
Trading Volume Change 24h	-82.47%

Cryptocurrency Metadata

You can check the development status and social media information of Kava through the links in the table below.

Metadata Source	URL
🌎 Official Website
📖 White Paper
🛰️ Source Code (GitHub)
🐦 Twitter
🤖 Reddit
🎺 Message Board

Where to Buy Kava

Here are the top ten world crypto exchanges where traders can buy Kava in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Not listed
Coinbase	Not listed
Kraken	Not listed
KuCoin	Not listed
Bitfinex	Not listed
OKX	Not listed
Huobi	Not listed
Bitstamp	Not listed
Bybit	Not listed
Gate.io	Not listed

Frequently Asked Questions