KAVA Cryptocurrency Review
Kava is a decentralized financial platform that focuses on cryptocurrency lending, liquidity provision, and token staking.
Kava allows users to interact with different blockchains through a single interface. Its primary function is lending, where anyone can borrow or lend tokens at an annual interest rate.
This article offers a detailed overview of the Kava network and its native cryptocurrency.
History of project creation
Kava Labs was founded in 2017 by Brian Kerr, Ruaridh O'Donnell, and Scott Stuart, with Ripple Labs also contributing to its creation. The platform was officially launched in October 2019.
Project funding
Kava raised $1.5 million in its first investment round in October 2018 from leading funds such as Arrington XRP Capital, Lemniscap, Digital Asset Capital Management, and Hard Yaka. In March 2019, the company raised another $5 million from Ripple Labs and Huobi Capital.
The KAVA token ICO was held in April 2020, with users purchasing tokens worth $3 million. Although publicly available sources, like Crunchbase, indicate the existence of five investment rounds, details of only one are available on the website.
Investments in the Kava project (Crunchbase)
Platform mechanism
Kava is not just a typical lending platform. On this platform, users can exchange tokens and transfer coins from one network to another if needed. Kava also allows users to deposit funds and earn interest rates that vary depending on the liquidity and type of asset. For example, the interest rate for stablecoin BUSD is 15%, while the interest rate for the KAVA coin is 25%.
Staking of BUSD and KAVA tokens on the platform
Kava also offers a unique product, which is liquidity mining with the stablecoin USDX. It is an algorithmic stablecoin of the platform, backed primarily by Kava tokens and other cryptocurrencies. Along with USDX, users can also stake BTC (5.96%), ATOM (11%), XRP (7%), and some other assets with USDX.
Recently, Kava integrated a bridge and added support for the EVM network, so the asset can now be used on the Ethereum blockchain.
Cryptocurrency KAVA
The platform has its own cryptocurrency, KAVA, which can be staked since the network operates on the Proof-of-Stake consensus algorithm. The coin is also used to pay fees on the network and for platform governance through voting.
Here are some characteristics of the KAVA cryptocurrency:
- Market capitalization – $347 million
- Maximum supply – 431 million
- Total circulating supply – 431 million
- Average daily trading volume – $12 million
- Maximum price – $8.66
- Minimum price – $0.04
Kava is available for purchase on many exchanges, including KuCoin, WhiteBIT, HUOBI, Gate, and other platforms. You can find a full list of trading platforms on CoinGecko and CoinMarketCap in the "Markets" section.
KAVA coin price dynamics since listing (CoinMarketCap)
Interesting facts:
- The Kava protocol has an additional coin called HARD (Kava Land), which is used in exchange operations within the platform. The current market capitalization of Kava Land is $24 million.
- The Kava team is composed of experts in finance, banking, and blockchain development, ensuring high-quality services and platform products.
- Kava is a member of the Interchain Foundation blockchain alliance, which aims to facilitate interaction between different blockchain platforms and develop the DeFi ecosystem.
- The amount of locked liquidity in the Kava project is $193 million.
Kava Ecosystem TVL (DefiLama)
