Does KAVA Coin Worth To Invest?

What’s KAVA Coin?

Kava.io, also known as KAVA, is a decentralized lending platform in the DeFi (Decentralized Finance) space that allows individuals to lend and borrow various cryptocurrencies without intermediaries or financial institutions. Unlike many DeFi projects, Kava operates on the Cosmos network, which enables greater customization and interoperability while minimizing scalability issues. Kava generates a stablecoin called USDX, pegged to the US dollar, by creating USDX tokens when a user deposits a supported cryptocurrency as collateral. KAVA tokens are rewarded to users who deposit their crypto on a weekly basis.

Kava’s lending protocol uses smart contracts to facilitate peer-to-peer lending. A user can deposit their cryptocurrency as collateral, and Kava will generate USDX tokens, which other users can borrow. A collateralization ratio is used to protect the protocol from volatility, ensuring that USDX remains over-collateralized to protect against collateral devaluation. To close a CDP (Collateralized Debt Position), users must pay off their debt, pay a lending fee, and the initial collateral is returned to the same wallet. The loaned USDX tokens are then burned.

KAVA History

Kava Labs, a for-profit foundation co-founded by Ruaridh O’Donnell, Brian Kerr, and Scott Stuart, created Kava in 2018. In a public token sale held on Binance exchange, Kava raised $3 million. Kava launched on the Cosmos platform in August 2020, enabling Binance Coin (BNB) as collateral for crypto loans in USDX. Since then, Kava has processed over $8 million in USDX loans and $24 million in BNB locked as collateral.

Kava stands out from other DeFi projects due to its cross-chain operations and interoperability, which allows users to deposit a wide range of cryptocurrencies, such as Binance Coin (BNB), Bitcoin (BTC), and Ethereum (ETH). As Kava evolves, it will include more possibilities for collateralization from various cryptocurrencies to USDX. Additionally, users can earn a percentage yield based on the system of minting new USDX coins.

What’s Value of KAVA

The intrinsic value of Kava is linked to its technology and utility, while its market price is influenced by the volatility of the crypto market and the activity of the development team. This includes developments, roadmap updates, upgrades, partnerships, new features, mergers, and support for more cryptocurrencies. As of today, there are 435,713,152 KAVA in circulation, and Kava is an inflationary cryptocurrency with an annual inflation rate that can range from 3% to 20%, depending on the amount of KAVA staked. Kava’s market cap is determined by the number of coins in circulation multiplied by the current market price and determines its rank compared to other cryptocurrencies.

KAVA tokens are available on a BingX. Trading symobol: KAVA USDT