The cryptocurrency industry is evolving, and more lending platforms have been introduced over the last few years. Kava is a new blockchain network that was launched in 2020.
In this blog post, you will learn about the Kava blockchain and how to buy the KAVA tokens.
What Is the Kava Blockchain?
The Kava Network is a Cosmos SDK Layer 1 blockchain that enables users to borrow from and lend to one another in a permissionless and quickly while maintaining full compatibility.
Kava Labs designed it as an open bank that allows users to earn more money with their crypto assets holdings while providing financial assistance to people who need it. When users transfer their assets to the platform, they are eligible to get rewards, which opens up additional opportunities for them to make a profit.
Blockchains operating at the Layer 1 level generally struggle with the issue of restricted scalability. Kava Labs is working to solve this problem with its one-of-a-kind Co-Chain design.
The Kava ecosystem is the first decentralized financial infrastructure platform developed on Cosmos SDK.
Cosmos Co-Chain is responsible for the platform's smooth interoperability, speed, and low transaction fees. These qualities are combined in a way that is only possible on the Kava platform. This guarantees that any decentralized finance application can connect the Kava network to its system to provide its users with access to the services offered by the platform.
What Is a KAVA Token?
The KAVA token is now playing an essential part in the governance of the Kava network, and it is also utilized as a reward for users who mint USDX.
To be more explicit, KAVA decentralizes the management of operations on the network. This allows everyone who possesses and stakes the cryptocurrency to vote on the software policies and rules that govern the coin.
Users can vote to change specific software parameters if they own and stake KAVA. Voting is done through staking KAVA. These include but are not limited to, the assets that can be used as collateral, the needed collateralization ratio, and the costs borrowers must pay to participate in the protocol.
In addition, Kava users can delegate KAVA tokens to the validators that govern the Kava blockchain and compete for newly minted KAVA. By doing so, users can earn a share of the stability fees other users pay when they close their CDPs and allocate votes to the validators.
Current trading price: $0.9531
Total market capitalization: 536.31 million
Total supply: 561.68 million
History of Kava Blockchain
It went live in August 2020 and allowed users to mint USDX, a USD-pegged stablecoin, by depositing supported cryptocurrencies as collateral.
Brian Kerr is one of the co-founders. Ruaridh O'Donnell is a graduate of Levelworks's MSc Physics program who worked there in the past as an engineer and data analyst. In addition to them, the CEO of the Kava Network, Scott Stuart, was one of the company's founders.
Features of Kava Blockchain
Interoperable
A highly scalable and secure blockchain for the Cosmos SDK that connects Kava to the more than $60 billion worth of chains and other assets that are part of the Cosmos ecosystem via the IBC protocol.
Compatible with EVM
An execution environment compatible with the EVM enables Solidity developers and their decentralized applications to use the scalability and safety offered by the Kava Network.
Scalable
Tendermint Consensus allows Kava to fulfill the transaction requirements of thousands of protocols and millions of users. It's single-block finality and unrivaled scalability makes this possible.
Governance
To be able to propose changes to the Kava Network and cast votes on those changes, KAVA tokens are required. These features include the selection of supported assets and decentralized applications, the calculation of their debt limits, the selection of appropriate collateral assets, collateral ratios, fees, and savings rates for various financial instruments brought to the network, and so on.
In addition, KAVA tokens can be used to vote on ideas that could affect the Kava Network SAFU Fund and treasury allocation, which includes reward disbursements for incentive programs.
What Makes Kava Unique?
Within DeFi, Kava is not the only protocol for lending that exists. Nevertheless, it is one of a kind due to the cross-chain operations and interoperability made possible by the Cosmos network, which is the platform where the protocol is hosted.
Users of the Kava lending protocol can deposit various non-native cryptocurrencies thanks to a feature of Cosmos known as zones. These cryptocurrencies include Binance Coin (BNB), Bitcoin (BTC), Ethereum (ETH), and a variety of other significant cryptocurrencies.
The "catch" is that to enable collateralization, these cryptocurrencies will need to be "wrapped" as BEP-2 Binance Chain standard assets for now.
As the KAVA project evolves, more choices for collateralization will be introduced by KAVA, ranging from other cryptocurrencies to USDX, enabling users to borrow more money through the KAVA lending system. The feature that allows users to receive a percentage yield depending on the method of minting fresh USDX is yet another aspect that sets KAVA apart from other cryptocurrency options.
Users can earn an annual percentage yield (APY) while having their deposited cryptocurrency protected by Kava and contributing to the HARD Protocol that powers the Kava market.
How to Buy KAVA Tokens?
CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including KAVA, users can now trade easily and seamlessly.
To buy the KAVA token, you must create an account on CoinEx.
If you already have a CoinEx account, this is how to purchase and sell KAVA tokens on CoinEx:
- To access your CoinEx account, visit the website or launch the app and enter your email and password.
- Put funds in your account to make KAVA purchases. You can deposit the funds via bank transfer, credit card, or debit card. P2P financing is another available option.
- Once you have funds in your account, you may buy KAVA by going to the KAVA token trading page and choosing the trading pair you wish to use.
- Tokens (USDT, BTC, ETH, and CET, etc.) can be exchanged for KAVA. Put in your order and the quantity you want to buy.
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