Kava is a Blockchain built in the Cosmos ecosystem on the basis of Cosmos SDK, like Crypto.com, Terra, Binance Chain… Initially, Kava was just a project on Lending array with Stablecoin USDX, backed by tokens. Popular Crypto Assets like: BTC, ATOM, XRP, BNB…
However, after that, Kava expanded its ecosystem, first developing Kava Lend in September 2020 , then Kavaswap in August 2021 .
Figure 1. Kava Token Allocation
For KAVA coin, the detailed token allocation will be as follows:
Here are the use cases of Kava tokens:
Use cases of USDX:
For the project, the development team brought together well-known figures and heads of different departments in the industry. These can be mentioned as:
As an ecosystem born early on Cosmos, Kava cooperates with projects inside this ecosystem such as Cosmos Hub, Iris Hub, Injectives, Frontier...
Figure 2. Kava Ecosystem
To be able to become a cross-chain DeFi platform, KAVA will need a technology that allows cross-chain connectivity, and an oracle that works on multiple chains to provide multi-chain data, such as cross-chain protocols can only work.
Recently, KAVA announced its integration with IBC (Inter Blockchain Communication), the technology that enables cross-chain interaction being developed by Cosmos and ChainLink. The project is supporting data provision for more than 400 other projects.
In January 2019, Kava received an investment of $1.2 million 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 between 1-5% of KAVA to Framework Ventures for a total amount of $750,000. It is known that Framework Ventures has advised Kava on the token inflation model, as well as plans to provide continuous technical support to the Kava team.
USDX
This is the main asset on the current KAVA ecosystem, minted by collateralizing other types of assets. And to promote the development of the KAVA ecosystem, the USDX loan interest rate is only 0.5%/year.
Token BEP2
Through BEP2 Bridge, Binance Chain, a chain also in the Cosmos ecosystem. Binance Chain users can switch to KAVA to enjoy massive APY. There are currently over $200 million in BEP2 assets on KAVA.
ETH Bridge, BTC Bridge
It can be seen that there are still many Incentives on KAVA, from which there are needs from other ecosystems that want to switch to KAVA.
In KAVA's vision of becoming a "MultiChain DeFi Platform", this is very important. The ETH bridge and the BTC bridge will help KAVA reach wider markets. KAVA Protocol and Hard Protocol can support a wider range of mortgages while still being able to lend at low interest rates, creating a competitive advantage.
When the Kava (KAVA) DeFi protocol launched in 2019, it was named as one of the most promising projects in the field of decentralized finance. At the time, KAVA was trading at $0.95. However, in September of this year, KAVA hit an all-time high of $14.38.
However, after that, a major correction occurred, causing KAVA to fall into a downward spiral. As of January 19, 2022, this coin is trading at $4.67, down more than 200% from the September high.
However, KAVA still delivers an ROI of 867% since its launch in 2019.
Figure 3. Kava price chart. Source: coinmarketcap.com
The past two months have seen cryptocurrencies go through a lot of ups and downs. Most coins, including DeFi tokens, have undergone a market-wide correction. Therefore, it is more likely that KAVA will be under upward pressure on the price. But it has actually fallen from this year's all-time high.
It is very unlikely that we will see the token rally back to those levels in the near term. However, the coin has been consolidating around the $4 level and hence, a short-term rally could emerge. Besides, the demand for DeFi tokens will increase in 2022, which could benefit KAVA.
In case you are looking for affordable investments in DeFi, then KAVA is a very good choice. Kava has seen some high winds in recent months. But as the broader crypto market recovers, DeFi tokens will be at the top of the growth list. As a result, KAVA and other major DeFi tokens could see tremendous long-term value. However, the first thing to note is that any investment contains both opportunities and risks. Therefore, the advice for you is to research thoroughly to be able to make the most suitable decisions for yourself.
Please see more information about KAVA here:
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