The price Kava.io today is 5.56 USD, and the trading volume in 24 hours - 145,479,994 USD. The crypto asset has grown by 0% over the day. Currently, the coin’s market capitalization is 508,817,286 USD, and has 91,443,180 coins in circulation with the max supply of 991,328 coins KAVA.
What is Kava (KAVA)?
Kava is a software protocol that uses multiple cryptocurrencies to allow its users to borrow and provide assets without the need for a traditional financial intermediary.
As such, Kava is considered one of a number of developing decentralized financing (DeFi) projects. However, while most DeFi projects run on Ethereum, Kava is instead built on Cosmos. The design solution, the team claims, adds additional functionality.
Platform users block cryptocurrencies in smart contracts on Cosmos so they can take out loans denominated in USDX, a cryptocurrency tied to the value of the US dollar.
Kava uses a Cosmos feature called zones to manage accepted crypto assets, which are then run in programs on independent networks. This allows the project to expand the number of borrowers of crypto assets that can use, among others, XRP, BNB and BTC.
By providing cryptocurrency for USDX release, users receive weekly rewards in the form of Kava cryptocurrency.
Who created Kava?
The project was created by Brian Kerra, Ruaridh O'Donnell and Scott Stewart in 2018.
It was then that Kava Labs, a commercial start-up whose goal was to develop and create the Kava crypto platform, was founded.
Then the team sold tokens on the Binance cryptocurrency exchange in 2019, raising at that time $3 million due to the sale of 6.5% of the total offerof coins.
Kava's decentralized lending platform officially earned in June 2020 when BNB could be used as collateral for USDX borrowing.
What is unique about Kava?
By allowing the user to lock assets in special smart contracts to borrow USDX, a so-called secured debt position (CDP) is created, a contract designed to secure binding the value of the USDX to the US dollar.
On Kava, USDX often has excess security, which means borrowers must deposit an amount that typically exceeds the cost of USDX issued under protocol.
The ratio of the amount of debt to collateral is then used to calculate the liquidation price.
For example, a 200% collateral ratio would mean that the user would be eliminated if the value of the cryptocurrency locked in the protocol falls below 2x USD.
If the debt-to-security ratio falls below the set threshold, the collateral held in smart contracts will be automatically liquidated and burned.
How many Kava coins are in circulation?
On February 2021, there were 46,876,230 KAVA coins in circulation, and there is no maximum offer.
How is Kava network protected?
Kava is created on Cosmos, where the Proof-of-Stake (POS) consensus is used, and network integrity is provided by Tendermint.
- To own your crypto assets, you need to manage your own private keys.
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