Cross-chain decentralized finance, Kava, is launching a new alternative for its lending platform with its native stablecoin, USDX. Users will be able to generate new low-risk rewards on their lendings.
In this article, you will discover why Kava is different from its competitors and everything you need to know about its newest lending platform launch.
Lock Your Crypto with Kava and Gain Market Exposure
Since loans and borrows were created in the crypto ecosystem, users’ only benefit was the API% return as if you were investing in a project. However, since Kava was launched, its fully decentralized protocol with institutional-grade security enables users to operate permissionless borrowing and lending services.
Kava is a censorship-resistant platform that operates in the Cosmos blockchain. This protocol has three pillars:
- Stablecoin Minting: Users can generate USDX loans in a few clicks with low rates and high rewards.
- Lending/borrowing: Users will be able to lend crypto and start earning rewards. Also, borrowing users can access cross-chain liquidity with 0% fees.
- Swap: Anyone can trade with low-cost fees and earn some of the highest rewards APYs in DeFi.
Kava has enabled its stablecoin, USDX, to be part of the borrowing service to give its users more benefits.
Users Can Now Borrow USDX in Kava’s Lending Platform.
On October 21st, Kava announced that users could borrow $USDX against their $USDX collateral. This will allow them to earn higher profits without the price volatility of other crypto assets.
USDX is the protocol’s native stablecoin, and it can be minted by users that supply collateral in other crypto assets. USDX is not directly pegged to the dollar. Also, it achieves stability from market flows and Kava governance. Therefore, USDX usage and stability are interlinked, so the more stablecoins in circulation, it trades closer to the dollar peg.
The USDX borrow limit on Lend was reached within the first 12 hours of launch.
Limits will be raised to $25,000,000
Congratulations Lend community pic.twitter.com/SQJCN54EH6
— Kava Lend (@hard_protocol) October 21, 2021
Also, it’s important to say that when users borrow $USDX against $USDX collateral, there is no risk of liquidation due to price fluctuations. It’s because the two assets have the same price. This implies that $USDX holders may increase their collateral amount and receive higher reward returns while assuming minimal risk.
Nowadays, Kava has USD 2.1 billion in on-chain assets with cross-chain transactions worth USD 1.8 billion. Also, it has a community of more than 280,000 users.
On the other hand, Kava’s’ native token, $KAVA, has gained 0.3% in the last 24 hours. At the time of writing, it was trading at USD 5.84, according to CoinGecko. The $KAVA prices have gained 27% over the past month but are down 35% from the August 30th all-time high of USD 9.12.
Currently, $KAVA has a USD 534 million marketcap with a 24-hour trading volume of USD 98 million. Its circulating supply is 91.4 million, and its total supply is 148 million tokens.
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