What Is Kava (KAVA) How It Works & Where To Buy It?

Kava is an innovative and versatile blockchain that hosts various decentralized products. The protocol offers unique products, such as the Kava Lending protocol, where depositors and borrowers can benefit from an unbiased, non-discriminatory, and optimized decentralized platform.

KAVA is the native utility and governance token of the protocol and is utilized to power the Kava network. The native token is also used to reward network contributors, meaning KAVA plays an integral role in the functionality of the Kava ecosystem.

The KAVA token is currently the 81st largest cryptocurrency by market capitalization.

 

How Kava (KAVA) Works

Kava is a sovereign blockchain that has been built on Cosmos and offers users a variety of decentralized products. The most notable is Kava lend, a lending protocol where users can borrow and lend crypto assets with no intermediary involved.

The Kava network comprises three primary products:

Kava Lend – This decentralized platform facilitates the borrowing and lending of various assets on the platform and offers significantly lower fees than traditional platforms. The technology used to execute payment is called Interledger technology, which was developed by Ripple Labs, one of Kava’s largest partners. HARD is the governance token of Kava Lend.

Kava Swap – A decentralized exchange where users can swap various crypto assets and utilize unique DeFi products. SWP is the governance token of Kava Swap.

Kava Mint – Users can mint USDX (Kava’s native stablecoin) when they deposit their crypto assets as collateral. They are subject to various factors, such as a collateralized debt position, which, if liquidated, triggers one of three auctions:

• Collateral auction
• Surplus auction
• Debt auction

Users seeking more information about the Kava protocol should refer to the Kava whitepaper.

 

What Is Kava (KAVA) Used For?

Kava is generally used by individuals seeking to participate in the project’s innovative products. The KAVA token is used to perform various actions in the Kava ecosystem and is also used to reward network contributors.

 

Where To Buy Kava (KAVA) Token

KAVA has been a popularly traded cryptocurrency since it was listed in 2019. The Kava ecosystem is growing exponentially, and as the project introduces more valuable products, it manages to attract more and more users to its platforms.

KAVA tokens are commonly traded on most centralized crypto exchanges. Before you’re able to purchase KAVA, you’ll need to deposit fiat money onto an exchange; sequentially, KAVA tokens will then be credited to your digital wallet on the exchange.

The crypto exchanges below are amongst the safest place where you can buy, sell and store tokens.

1. OKX
2. HTX
3. KuCoin
4. Binance

KAVA token holders often opt to transfer their tokens to a digital wallet. From there, they can connect to decentralized platforms and make use of yield-generating DeFi products.

It is strongly advised to move tokens away from centralized exchanges since doing so allows consumers full control over their crypto assets and private keys.

None of the abovementioned information is investment advice.

 

About Kava (KAVA)

How long has Kava (KAVA) existed?

KAVA was initially launched in 2019 after the project hosted its IEO. The IEO price was 1 KAVA = $0.46. Since its listing on several major exchanges, the KAVA token has continued to perform well and has become one of the most well-known cryptocurrencies and utilized platforms.

Kava was co-founded by Brian Kerr, Ruaridh O’Donnell, and Scott Stuart.

What’s controversial about Kava (KAVA)?

The crypto industry is notoriously unregulated and controversial in the majority of countries around the world. Before investing, users should always use discretion and educate themselves as much as possible on the fundamentals of cryptocurrencies and blockchain.

Many fraudulent initiatives are established to take advantage of uninformed consumers who don’t complete sufficient research before investing. Never spend more than you can afford to lose.

Let’s take a look at the top controversy surrounding Kava (KAVA):

• KAVA Token Allocation – There is a significant amount of controversy surrounding the KAVA token allocation, mainly because more than 40% of the tokens were sold in 3 large private sales. This indicates that a select few were given exclusive access to a large number of KAVA tokens, and if they were to dump these tokens – it would cause a significant crash in the KAVA price.
• Like most other major crypto assets, the fact that the tokens have utility on the same network doesn’t necessarily give them their true value. The true value comes from supply and demand, and when select groups control a large portion of the supply, it poses a significant risk to the protocol.

How many Kava (KAVA) Tokens are there?

At the time of writing, Kava (KAVA) has a circulating supply of 221,097,974.00 KAVA

The total supply of Kava (KAVA) is 226,066,723

Can Kava (KAVA) be mined?

KAVA tokens can’t be mined. The Kava blockchain uses a proof-of-stake consensus mechanism to secure its network and doesn’t support any mining on the chain. KAVA holders that stake KAVA is responsible for securing the network. This consensus mechanism is also seen as more energy-efficient than traditional proof-of-work consensus mechanisms.

Additionally, it’s also possible to earn yields on KAVA tokens by participating in liquidity provision on Kava Lend. Users can also leverage the yield-baring DeFi products such as staking, liquidity pools, and farming on other decentralized platforms.

To benefit from these innovative DeFi products, users need to have their KAVA tokens stored in a digital wallet that they can easily connect to the decentralized platform. One of the most popularly used decentralized exchanges is Pancakeswap, which is run on Binance’s Build-and-build chain (BNB Chain).

Some centralized exchanges allow users to earn yields from staking their KAVA tokens.

What is the market cap of Kava (KAVA)?

The market cap of Kava (KAVA) is: the total amount of coins in circulation x the current market price of KAVA.

Kava (KAVA) Market Cap = 221,097,974.00 KAVA x $1.79 = $396 million (81st largest market cap)

KAVA is currently one of the top 100 cryptocurrencies by market capitalization.

 

Biggest Competitors Of Kava (KAVA)

Kava has several competitors, and although the project has several valuable platforms, many other projects provide the same products and solutions to users. The protocol has expanded exponentially since its launch, but it will need to remain innovative to capitalize on the growth and investment opportunities in the crypto space.

Kava’s biggest competitors are:

• MakerDAO
• AAVE
• COMP
• DAI
• USDT
• USDC

 

What Are The Future Plans of Kava (KAVA)?

Kava will prioritize growing its user base, increasing overall utility for the KAVA token, and adding several new and valuable DeFi products to its ecosystem. Furthermore, the Kava team will focus on getting the KAVA token listed on more exchanges and increasing the exposure and reach of the project.

It will look to leverage the security and efficiency of Cosmos while attracting more users to its native platforms. The KAVA cryptocurrency has quickly become known in the crypto space, and the project will look to increase the number of retail and institutional investors buying KAVA.

 

Pros And Cons Of Kava (KAVA)

Pros:

• Major Partnerships – Kava has several major partners, indicating a lot of belief in the project. Binance, Ripple, Reef, and Swipe are some of the most notable partners. Kava Labs shareholders play a significant role in increasing the project’s exposure and funding the further development of the project.
• Listed On Large Exchanges – KAVA is listed on most major crypto exchanges, including Binance, Kraken, KuCoin, and HTX. These listings have ensured that the project benefits from enhanced exposure and higher trading volumes. Listings on major exchanges also make the project seem more credible in the eyes of the crypto community because major exchanges trust the project enough to list their token.
• Leverages Cosmos – Kava is a sovereign blockchain, a Cosmos co-chain, that leverages the security and customized features of the Cosmos chain to increase efficiency and security for the Kava network. The Cosmos SDK made it relatively simple for Kava to create a scalable network, including a host of valuable projects such as Kava Mint, Kava Swap, and Kava Lend.
• Kava Ecosystem – The Kava ecosystem is growing exponentially and the Kava platform will incorporate a host of valuable decentralized finance applications that will inevitably draw a large number of users to the project. Many of these applications will help Kava users earn yields on their tokens.
• Growth Potential – The Kava blockchain allows for the deployment of various ideas and applications which can add value to the project’s ecosystem. The Kava protocol is primed to grow into a formidable project which will incorporate a host of valuable and innovative systems.

Cons:

• Competition – Kava has quickly grown to become one of the most well-known projects in the crypto space, and this can be attributed to the project’s unique value proponents and growing ecosystem.

  However, the project faces significant competition, especially from other major lending protocols and blockchain projects which offer users similar products. Several projects have already established massive global communities, onboarded thousands of users, and offer incredibly valuable products to their users.

• Stablecoin Trust Issues – The Kava Protocol has created its own stablecoin, which can be seen as a significant and exciting opportunity and development for the project. However, the stablecoin sector has recently experienced several controversies which have led to users being skeptical about stablecoins with less adoption and smaller market caps.