Over the course of 52 weeks, cross-chain DeFi lending platform Kava Labs will distribute 3,848,000 KAVA to the BNB holders. However, BNB holders need to stake BNB as collateral and mint USDX on Kava to claim the rewards.
According to the latest update by KAVA Labs, USDX minting rewards will begin on 15 July 2020 at 14:00 UTC for BNB Holders.
The promotion was announced to celebrate the launch of the Kava platform on 10 June. This will also accelerate the creation and adoption of USDX. BNB holders will be the first group of USDX minters to receive these rewards from Kava Growth Funds. As a matter of fact, the Kava lending platform investors and community have raised the Growth Fund.
The Crypto Paydays
According to the recent official announcement, starting from 15 July, every Wednesday will be a Crypto Payday. This is when the first batch of 74,000 KAVA rewards will be distributed to eligible Kava wallets.
Why the delay?
The reward distribution commencement date has unfortunately seen a series of delays. Yesterday, on 30 June, Kava Labs’s official twitter handle updated the community about the delay. According to the post, the proposal for enabling USDX rewards for BNB has failed to pass.
Update: USDX Minting Rewards for BNB — Proposal Did Not Pass, New Vote Issued.https://t.co/WEc6tDsXms
— Kava Labs (@kava_labs) June 30, 2020
This is due to the fact that the Kava Network is currently facing issues in increasing the BNB deposits. The good news is that the team is already working on a fix and on 1 July 14:00 UTC, the community will again conduct voting in favor of enabling USDX rewards for BNB. If it wins by the majority, 15 July will be the first Crypto Pay Day for USDX minters.
The community had voted against the proposal because the current BNB limits are low. If they would have started the distribution now, there would have been an unfair distribution of rewards. Moreover, this would have left no opportunity for new participants to become USDX minters.
How does USDX Minting Rewards Work?
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The Kava investors and community have pooled in 3,848,000 KAVA in BNB Rewards Pool. Every week 74,000 Kava will be distributed to the eligible wallets.
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If one wishes to participate, they must generate a USDX loan to qualify.
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The rewards are automatically calculated and distributed every week. These accumulate to a Kava wallet using the following proportion method. Your share ~1 KAVA every block = (Your USDX loan amount) / (Total USDX loan amount)
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One cannot transfer the redeemed KAVA rewards till 52 weeks but staking is allowed immediately to earn rewards.
Why Kava over other DeFi lending platforms?
Most of the DeFi lending platforms accept only Ethereum based crypto assets. But Kava is a cross-chain DeFi platform and is in the process of adding more crypto assets. The current promotion offers BNB holders a good opportunity to leverage their BNB tokens.
Recently, Kava employed Chainlink Oracles to make secure price data available to the users.
What is the future of Kava?
Once the USDX minting reward distribution starts, the platform intends to adopt new assets. The governance group will vote for the next group of assets and the most likely candidates are BTC, XPR, or ATOM. We will keep a close watch there and will keep you updated.
