Review on Kava by Fanuel PORPORTY
The project wants to create the world’s first dedicated DeFi platform offering colleteralized debt and stablecoins for all the major crypto assets. Built on tendermint core and powered by Cosmos, the project is also coming hot off a successful Binance IEO in 2019.
The Kava platform is being called “DeFi for Crypto” as it is designed to offer using collateralized loans based on a variety of different cryptocurrencies. It’s a cross-chain platform that offers a service similar to that of Maker DAO, but where Maker supports ETH and eventually ERC-20, Kava is capable of providing collateralized debt positions on any cryptocurrency theoretically. The platform has already garnered the support of many major players within the crypto ecosystem, including projects like Cosmos and Ripple, and hedge funds such as Arrington Capital.
To provide its service Kava uses both a stablecoin (USDX) backed by crypto-asset collateral and a staking token (KAVA) used for voting and governance. Kava works using Interledger to integrate diverse blockchain networks, which allows new users to access this group of diverse networks. Through Kava, a wallet user is able to send payments cross-chain and to complete seamless asset swaps right within the wallet.
Pros
- Exchanges can also use the Kava solution to allow users to retain control over their blockchain assets while transacting directly with the exchange’s order book.
- Their cryptocurrency swap application called Switch allows for the nearly instantaneous swap of cryptocurrencies, even those based on different blockchains.
Cons
- A major competitor: the DAO Maker
- KAVA is a relatively new young project which must prove itself.
