Review on Kava by Temitope Babatunde
Kava Project Gives You The Opportunity To Take Loan Against Your Crypto Assets.
Kava is built on the tendermint core and powered by cosmos was launched in 2019 though it is believe to has been in existence since 2017. The team is being headed by Brian K the CEO and other notable members. The platform is meant to offer loan using collateralized loans that is based on cryptocurrencies coming from various networks. Unlike MakerDao which has been in existence before it, which only accept erc20 tokens as it's collateral.
The project is popularly referred to as 'Defi for Crypto'. This project see the support of major stake holders in the crypto field such as cosmos, ripple and some hedge funds such as Arrington Capital.
The Kava platform permit users to lock their crypto assets on its CDP(Collateralized Debt Positions) platform and recieve USDX stablecoins in return. Unless the crypto that a user use as collateral is about to fall below the loan taking with the interest will the system liquidate the asset to settle the debt, when the users paid back the debt then the usdx will be return into the system to be burn and the asset released.
Kava project will support as many network as possible, there is also an opportunity to staken certain assets on the platform and recieve daily reward.
The token for the project is also called Kava which was introduced into the market during IEO which was carried out on Binance exchange platform. With Kava token, the holders can participate in the governance of the platform by voting for necessary rules governing the mode of operation of the platform. 100 million tokens was issued at it's genesis block, since then the token has been doing fine in the market and still has potentials to grow.
The team is working very well to deliver and give the users the best in the Defi field. Kava token can be stored in any wallet that has the cosmos support incuding Trustwallet.
Pros
- When finally launched one can easily get a loan from this platform.
- Those investors who participated in it's IEO have surely realized their investment.
- The platform will give a willing users to use cryptocurrencies as a collateral in order to get a loan.
- The team is transparent and can be easily reached on twitter or telegram.
- The users of the platform can participate on the governance of the platform through their vote.
- Staking Kava can be a passive source of income to the staker.
Cons
- There are lots of similar projects in the crypto field.
- The time will tell if it will not have liquidity problem.
