What is Kava?

Sep 13, 2022
3 min read

This blog post will cover:

  • What is Kava?
  • Where did Kava come from?
  • What are the advantages of Kava?
  • What are the disadvantages of Kava?
  • How to buy Kava on SimpleSwap?

What is Kava?

Kava is a DeFi cross-chain project based on Cosmos that provides users with access to secured decentralized loans and stablecoins. Unlike other DeFi platforms, it currently supports multiple cross-chain cryptocurrencies, including BTC, ATOM, XRP, and BNB. And Kava's main purpose is to become the standard one offering all major crypto assets.
The KAVA token and the USDX stablecoin are the two main cryptocurrencies featured on the Kava platform. KAVA is the staking and governance native token of its own blockchain. It gives owners the opportunity to stake and receive block rewards. USDX is a synthetic US dollar stablecoin. The KAVA staking reward is over 30% currently.

Where did Kava come from?

Kava was founded in 2017 by Scott Stuart, CEO (who founded AppEase), Brian Kerr (who is also Snowball and DMarket.io advisor), and Ruarid O’Donnell, blockchain development lead.
In 2019, they released the CDP system, which is considered to be the main Kava’s product. The Kava CDP platform allows people to use your electronic funds as collateral to obtain a loan in USDX. Once the debt is paid off, the system burns the USDX and the mortgage returns to the user.
The project team, Kava Labs, has been involved in the development of blockchain solutions for such projects as Ripple, Tezos Tendermint / Cosmos, MakerDao, etc. In March 2019, Xpring, a division of the Ripple ecosystem that allows banks, payment providers, and exchanges to leverage blockchain technology invested in Kava Labs. In November 2019, Kava successfully launched the KAVA mainnet and in 2020, Kava launched cross-chain assets in the CDP system on the main network. Kava is supported by many different wallets such as Trust Wallet, Cosmostation, Kepler, Ledger and more.

What are the advantages of Kava?

  • A possibility to vote on proposals of making changes to the blockchain or setting system parameters for KAVA holders.
  • KAVA is decentralized so the government cannot close it down.
  • Stablecoin support as protection against excessive volatility of the crypto market.
  • The possibility of lending directly between users, without counterparties.
  • A reward program to stimulate users for launching validator nodes.

What are the disadvantages of Kava?

  • Users have relatively limited liquidity when they want to buy or sell the token because of the limited exchange support for the KAVA token.
  • Lack of details about the project, its founders and advisors.

How to buy Kava on SimpleSwap?

We thank you for expressing interest in the Kava project. We hope you liked the information above. Now you may want to buy KAVA and join its community. You need to take a few simple steps. We suggest you go to the SimpleSwap homepage and follow the instructions below:

  • Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
  • Select KAVA in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
  • Enter the Recipient's Address. KAVA will be sent to this address. Be careful and make sure you use the correct address.
  • Check all the information you have entered. If everything is correct click the Exchange button.
  • You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.

Congratulations! Now you have KAVA! We are always glad to see you on SimpleSwap. Till next time!

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