Kava's cross-chain networks combine the flexibility and speed of Ethereum smart contract development with the interoperability of the Cosmos SDK in a single network, all powered by the ultra-fast Tendermint consensus engine.
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General information about Kava
It operates as a decentralized digital asset bank, providing users with access to a range of decentralized financial services, including USDX native stablecoin, pegged to the US dollar, as well as synthetic assets and derivatives. Through Kava, users can borrow USDX tokens by posting collateral, effectively using their crypto assets.
The blockchain company was founded by the following engineers and analysts:
- Brian Kerr;
- Ruaridh O’Donnell;
- Scott Stewart;
The protocol, built on the Cosmos blockchain, uses a Collateralized Debt Position (CDP) system to ensure that stablecoin loans are always sufficiently collateralized. If the borrower fails to maintain its collateral above the required threshold, Kava's liquidator module withdraws collateral from the insolvent CDPs and sends it to the auction module for sale.
Platform features
In addition to the $Kava USDX stablecoin, the Kava blockchain also includes the native $KAVA token. It is a utility token, used to vote on governance proposals, and also functions as a reserve currency when the system is underfunded.
Key features:
| Blockchain | A highly scalable and secure blockchain Cosmos SDK that connects Kava to 30 chains and over $60 billion of the Cosmos ecosystem via the IBC protocol. |
| Performance | An EVM compatible runtime that allows Solidity developers and their dApps to benefit from the scalability and security of the Kava network. |
| Blocks | With single block finality and unparalleled scalability, Tendermint Consensus enables Kava to support the transactional needs of thousands of protocols and millions of users. |
This blockchain platform uses a Collateralized Debt Position (CDP) system to ensure that stablecoin loans are always sufficiently collateralized. If the borrower fails to maintain its collateral above the required threshold, Kava's liquidator module withdraws collateral from the insolvent CDPs and sends it to the auction module for sale. In addition, users can earn regular KAVA rewards by minting USDX on the platform. The system also uses several mechanisms for burning KAVA tokens, which helps to reduce their number in circulation.
Safety of Kava
The project is built on the Cosmos protocol and uses the Proof-of-Stake (POS) consensus mechanism. At the same time, the platform uses a network of validating nodes to confirm transactions. These validation nodes must provide collateral to take on the responsibility of validating transactions. If validators do not meet the strict minimum requirements, their stake will be penalized—thus incentivizing validators to remain fair and efficient.
Tokenomics
The maximum supply of tokens is 111.5 million tokens. However, since KAVA is inflationary, this maximum supply increases over time, from 3% to 20% per year, depending on the percentage of $KAVA tokens that are staked.
KAVA coin can be purchased on the following cryptocurrency exchanges:
- Binance;
- Kraken;
The maximum supply may also increase if KAVA needs to be minted in order to keep the market well-endowed.