Kava is a cross-chain decentralized finance (DeFi) lending platform which enables users to take out loans by locking-in collateral in exchange for USDX, a stablecoin soft-pegged to the U.S. dollar.
Kava seeks to become the de facto DeFi lending protocol through its decentralized lending capabilities and USDX stablecoin, facilitating access for a greater variety of crypto assets for its users. At its core, the Kava protocol functions similarly to a bank. It enables users to deposit their assets and obtain loans, and charges interest on USDX borrowings and savings. Traditional financial institutions only ever provide these services after tedious registration processes, rigorous credit score checks, and compliance with know-your-customer (KYC) and anti-money laundering (AML) regulations. However, because of Kava’s decentralized nature, users need only supply their wallet address and any supported cryptocurrency to enjoy similar services. This has led to an increase in KAVA price.
In terms of security, KAVA is used to validate transactions on the network. The protocol’s Proof of Stake (PoS) consensus mechanism enables KAVA token holders to stake their tokens and validate transactions. The top 100 stakers, determined by their proportion of staked KAVA, are designated as validators. Rewards are paid to these validators in KAVA derived from transaction fees and block rewards to incentivize proper validation of the system. Non-performance or improper validation results in the reduction of these rewards.
Over $250 million have moved through KAVA APIs. Kava has processed over $100 million in loans to over 250,000 users.
Kava Swap – Mainnet
You can Earn, Lend, Borrow, Exchange and Invest using KAVA swap. The mainnet for Kava Swap goes live on 30th August 2021.
The Kava token (KAVA) is the native governance token and staking asset for the Kava protocol. Holders of the token are responsible for governing the protocol, voting on smart contract and operational parameter proposals, securing the network, and acting as the lender of last resort.
Let us review KAVA Price.
KAVA Price Prediction
KAVA has broken out of the resistance at $6.28 and with the mainnet going live on 30th August, it has broken out. It is currently trading above $8.24 which is the 0.786 fib zone. If it can break this resistance zone, we could start seeing a move towards $9.01, $11.25 and $14.87. As long as the support at $7.63 (0.618 fib) maintains, we could continue seeing upward momentum in KAVA. If $7.63 breaks, we could start seeing a move towards $7.20, $6.78 and $6.25.
Join us on Telegram to receive free trading signals.
For more information on cryptocurrency, visit the Altcoin Buzz YouTube channel.
Images courtesy of TradingView.
The information discussed by Altcoin Buzz is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinons relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided.
Do your own due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd. All rights reserved.