Kava is the first cross-chain decentralized financial platform developed based on Cosmos, providing automated multi-asset mortgage lending services.

Dedicated to product applications and developers to provide a barrier free permanent financial services infrastructure.

While stablecoin has grown rapidly, USDT has been plagued by questions about compliance. As a latecomer, compliance stability coin is also dazzling. More in line with the spirit of blockchain, synthetic stablesoins (which are generated by collateral from other assets) have long been the only player in the stablesoin fray.

The Kava project integrates proprietary technologies that allow holders of digital assets such as BTC, BNB, XRP and ATOM to connect their crypto assets with other digital products such as interest-bearing accounts, loan transactions or hedged stable currencies to achieve high returns.

In Kava's decentralized derivative financial system, a dual-currency model is adopted. One is USDX, and the other is Kava, the platform governance token. Through the dual-currency mechanism, Kava's entire decentralized pledge loan system works well. Users can directly Stake their own KAVA or entrust it to a service provider, who can get rewards for participating in the Stake. Meanwhile, KAVA is also a functional currency, and users' transaction fees, closing and clearing of loan positions can be paid with KAVA. This fee can be paid with tokens issued by Kava, which are then destroyed. So typically, Kava's tokens are deflationary.

Users can withdraw the USDX (Kava's stablecoin) by locking their collateral into a smart contract. Users can pledge USDX for revenue. Users can take out a series of mortgages to create comprehensive leverage for any backed crypto asset. For example, you can lock in XRP and cast USDX to buy XRP, creating a leveraged position.

Kava uses Cosmos and uses tendermint-based proof of claim (PoS) consensus mechanism to operate. Kava's core system is similar to MakerDAO with CDP, but uses Cosmos' Zones to add cryptocurrencies running on standalone networks (e.g. XRP, Bitcoin).

Multiple mortgage assets (expand the market size and number of users, minimize risks, and release the long tail effect of the crypto market; According to the best investment logic of Placeholder mid-tier, Kava is a very promising mid-tier that can capture the value of the underlying blockchain across chains) with better performance (frankly, Cosmos is based on the Tendermint consensus, sacrificing some degree of decentralization for high performance, This leads to a high performance feature for Kava, but it seems to raise a new question -- if the default DeFi transaction value should be high, how much decentralization and performance should be trade-offs, and how much decentralization is appropriate if some is sacrificed?)

Using the Kava platform, users can lock their cryptographic collateral into smart contracts and withdraw USDX tokens, or they can lend out USDX tokens and earn interest.

Kava is similar to Maker except that it has different collateral assets, PoS mechanism for native token pledge verification transactions, and token capture value mechanism. The mortgage assets currently backed by DeFi Head Maker include: ETH, BAT, WBTC, USDC, TUSD, ZRX, etc. Community members have recently voted for two new mortgage proposals led by start-up Firm Emulsion ge, trying to tokinate real assets and introduce them into the DeFi world. However, Kava's emphasis is different. CDP, which was officially launched on June 10, took the lead in supporting Binanping NT $BNB, and will continue to support ATOM, managed BTC, unmanaged BTC and XRP in the future. Kava prefers to support major cryptographic assets. To provide decentralized financial services to their users. This has greatly enriched the application scenarios of other crypto assets and promoted the economic activity of multiple crypto asset communities. Meanwhile, the multi-asset mortgage supported by Kava CDP may also reduce asset correlation and risk and enhance the robustness and security of its CDP because it can accommodate multiple assets. Kava's cross-chain properties will also help it interact with ethereum DeFi protocols and others in the future to create more use cases.

1. The security of Kava's mortgaged assets needs to be verified. Although more and more assets are mortgaged, the security of assets on the network will be the biggest issue. KAVA relies on the cosmos backbone network for security, and the balance between performance and decentralization is worth considering. 2. The stablecoin sector is highly competitive. Today, Kava is no match for Big Brother MakerDAO, not to mention USDT still dominates the market. So although Kava looks like it's on a good path, it's still way behind its rivals.

Kava is a public chain. In addition to the stability fee benefits, the network also has fee benefits, which can be captured by Kava tokens. Staking is Staking. Note that Kava is Staking at an inflation rate of 7%. If Kava tokens are not locked up to two-thirds of their total supply, inflation will creep up to 20%. If the lock-up exceeds two-thirds, inflation gradually falls to 3%. In order to improve the volume of lockers, protect network security. The value of KAVA token depends on the development of KAVA public chain, all depends on the subsequent development of the project.