Review on Kava by Stephen Toluwani
Kava is providing Decentralized Finance in a whole new level
Kava is a Cross-chain Decentralized Finance hub that acts as a decentralized bank by providing loans based on the users Collateralized Debt Position in it's Stablecoin USDX. It's Stablecoin is backed by crypto holdings which maintains it's steady and stable value of the US Dollars. The Kava project claims to have started in 2017 though there are reports that bouts this claim. The project is supported by the Big Guns of the crypto industry such as Binance, Huobi, Cosmos and a whole host of others.
The major use case of Kava just as every other Decentralized Finance is providing users access to Collateralized loans and interests to it's holders. This De-Fi project beats it's competitors like Maker DAO in the area of providing Collateralized Debt Position on some major crypto holdings other than holdings in Ethereum only as in the case of Maker DAO. The hedge of using Interledger to integrate different blockchain networks is a big plus to it's project. It's major use case is it's On demand liquidity on its Interledger Decentralized Exchange and Cross-chain transactions with it's primary product; Collateralized
Kava uses Cosmos and a Tendermint-based Proof of Stake consensus mechanism for it's transaction validation. It aims true decentralization through it's governance token; Kava token which is a BEP-2 token with it's own blockchain which can be hosted on major hot and cold wallets aside its own native wallet such as Trust Wallet, Delchain and Ledger Cold wallet. The token is a widely traded one as it is listed on 21 Crypto Exchanges with a good 24-hour trading volume
The project is a great one with it's Interledger that has given it a better hedge as compared to other Decentralized Finance Projects, though they are lagging behind in their roadmap of implementing it's Cross-chain Blockchain. Other than that, it's a really promising project that in due time, will be widely accepted as the major decentralized finance platform
Pros
- Kava is a Decentralized Finance Project with a difference in the fact that it is a Cross-chain Decentralized Finance Project and beating Maker DAO by providing Collateralized Debt Position on some major crypto holdings.
- Kava uses Interledger to integrate different blockchain networks for instant swaps between different cryptos of different blockchains
- It's Kava token has use cases of Governance and staking which provides rewards to stakers
- It's a project backed by the Big Guns of the Crypto industry such as Binance Huobi Cosmos Okex and a host of others
- The Kava token is traded on 21 exchanges and has a huge trading volume in millions of dollars
Cons
- The project is lagging behind in it's roadmap in implementing it's Cross-chain prospects
