VIP only

  • Kava aims to become the default DeFi platform by providing stablecoins and decentralized lending against all major crypto assets.
  • Kava utilizes Cosmos and operates with a Tendermint-based Proof-of-Stake (PoS) consensus mechanism. At its core, Kava relies on a system similar to MakerDAO with CDPs but leverages the zones from Cosmos to add cryptocurrencies running on independent networks (e.g., XRP, Bitcoin).
  • Kava relies on two main tokens: KAVA and USDX (Kava's stablecoin). Besides its stablecoin USDX, Kava features a governance token, KAVA, that is further staked in bonding curves of network validators. It is also used when Kava acts as a lender of last resort.
  • The platform has three primary use-cases:
    • Users can draw USDX, Kava's stablecoin, by locking collateral in a smart contract.
    • They may stake USDX for a yield.
    • Users may take out a series of collateralized loans to create synthetic leverage for any supported crypto asset. For instance, it is possible to lock XRP and mint USDX to buy XRP, hence creating a leveraged long position on XRP.