Review on Kava by francis fernandez
KAVA: A Blockchain for Crypto-Asset-Backed Financing
Kava is a project that is based on the use of a blockchain to operate finances in a decentralized way. Its mission is to be the main platform for the management of decentralized loans through the convergence in a chain of blocks of the main currencies in the market, including stablecoins.
By using this platform, users can deposit digital assets and obtain financing in the stablecoin USDX (the stable token of the native currency of the KAVA platform).
In this sense, the currency has two tokens:
1-KAVA: It is the native token of the platform and serves to guarantee transactions within the network.
2-Token USDX: a stable crypto asset that is backed by Bitcoin, BNB, ATOM, XRP, among other important ones in the market. Its value is linked to the US dollar.
The maximum limit for coins is KAVA 106,040,391. A relatively high amount compared to many cryptocurrencies on the market.
Its DEFI protocol was originally hosted on the main COSMOS (ATOM) blockchain, secured by support from Binance COIN.
How does KAVA operate?
KAVA uses the system of Guaranteed Debt Positions (CDP) and the Interledger mechanism to generate the stable currency USDX-1 that are guaranteed by the backing of the virtual assets of the users. KAVA holders receive a prorated amount of USDX when immobilizing their crypto assets.
Where to keep this crypto asset?
The KAVA platform offers at least three options so that its users can safeguard their assets safely. These are two digital wallets: Trust Wallet, Dell Chain, and the platform's ledger.
Pros
- It allows obtaining loans guaranteed by crypto assets. It is a useful platform to safely transfer assets between networks.
- Allows exchange between cryptocurrencies and stable currencies
Cons
- KAVA cannot be purchased with fiat currencies, therefore conversion to BTC is required.
