Kava Labs has launched its first utility: a yield-generating decentralized finance (DeFi) platform for bitcoin (BTC) and different non-Ethereum bel
Kava Labs has launched its first utility: a yield-generating decentralized finance (DeFi) platform for bitcoin (BTC) and different non-Ethereum belongings.
The product, referred to as Harvest and constructed on the Kava blockchain, permits customers to stake their crypto so it may be lent out to different customers. Harvest will initially help deposits of BTC, BNB, BUSD and XRP. Quickly, Kava Labs plans to debut automated market makers (AMMs) like Uniswap and robo-advisors like Yearn.Finance on the blockchain as properly, stated Kava Labs CEO Brian Kerr.
Just like DeFi platform MakerDAO, Kava will permit customers to create collateralized debt positions (CDPs) on the Kava protocol in alternate for a stablecoin, USDX, pegged one-to-one with the U.S. greenback. Not like Maker, although, Kava works with belongings outdoors the Ethereum ecosystem which have largely watched the DeFi craze from afar.
Kava Labs is backed by a number of giant exchanges, together with Binance, Huobi and OKEx, which stake kava tokens and take part within the blockchain’s governance.
Kerr stated that Harvest was impressed by Aave and Compound, however that Harvest will carry the identical capabilities that these protocols need to a bigger array of digital belongings.
“Once we had been constructing out Harvest, we noticed the design paradigm already working,” Kerr stated. “What we will carry to the desk is unlocking these a lot larger-market-cap belongings and giving them the identical sort of lending and borrowing performance.”
Harvest customers who borrow or lend on the app will likely be paid their curiosity and HARD tokens, the governance token of Harvest, which will even be used to incentivize liquidity on the platform.
Kava is constructed on the Tendermint consensus algorithm, which can be employed by the Cosmos blockchain interoperability undertaking. Kava performed an preliminary alternate providing (IEO) on Binance in October and counts Arrington XRP Capital as an investor.