Kava Labs releases new cross-chain liquidity hub for DeFi
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this year, Kava Labs announced the launch of its latest project “Kava Swap”. The new platform will be an app for all DeFi financial applications and services across the space.
Its main goal is to enable capital aggregation, which can then be seamlessly deployed across DeFi’s various blockchain ecosystems and other instruments.
Initially, the project was building its own blockchain ecosystem, which led to the development of the DeFi app. Earlier this year, the network released a roadmap for the coming year. In addition to launching Kava Swap, they plan two other cross-chain bridges, Ethereum and Bitcoin
In its official
description, Kava commented that the launch of Kava Swap is the “third synergistic pillar” of the DeFi ecosystem it is creating.
So what is swap?
Kava Swap is an Autonomous Market Maker
(AMM) protocol that works across multiple chains to leverage key platform features.
Swap allows users to exchange assets between different blockchains and place their funds in market maker pools. If you do this, users have the ability to make money
on the stake placed.
The platform has three main functions
- Swap: Allows users to easily trade or swap between assets with guaranteed liquidity.
- Liquidity Supply: Users can increase the efficiency of their digital assets by using them as capital in liquidity pools. AMM uses liquidity pools when exchanging between assets.
- Earn: those who provide liquidity through capital placed in liquidity pools receive both merchant fees and a Swap Kava token. Swap Kava tokens are tokens that manage applications.
In its current form, the project roadmap shows four versions of the application. With each subsequent version, the platform adds bridges between other decentralized ecosystems. Along with new cross-chain bridges, management and scalability updates come with each new version.
of V1 application supports swaps between BTC, XRP, BNB, BUSD, USDX, KAVA, HARD and SWP. At this stage, the addition of new assets and liquidity pools is enabled by chain management voting.
Kava Swap tokens and management
As with all DeFi applications, management tokens are key to operating in a fully decentralized space. In Kava Swap, the tool to maintain decentralization is the Kava Swap token. It provides community members with a voice in building the future of the application.
Those who hold Kava Swap tokens manage the resources available on the platform, platform fees, and reward distribution. At the start of Kava Swap’s launch, 250 million Kava Swap Tokens will be minted. However, they will only be available for over 4 years.
The developers have designed Kava Swap tokens with no intention of seed or private sales. Instead, they will be made available in stages with specific allocations.
- 55% – Community: these funds are earmarked for liquidity pool incentives, staking incentives, airdrops and activities chosen by the community.
- 25% – Treasury.
- 15% – Team.
- 5% – ecosystem.
Do not be confused that the token, while made in the same ecosystem, is different from Kava Swap tokens. This is due to the full sovereignty that the decentralized community it intends to support has.
The network is accelerating thanks to DeFi
Changes in its network have increased over the past six months.
Last month, the network’s native token peaked slightly above its resistance point. Although it failed to break through, it continues its upward trajectory.
In addition to the token finding a stable base, the network has made bit moves in the DeFi space. In June, the company joined forces with EU-licensed financial institution Simplex. Together, the pair is working on the firstfiat-to-DeFiramp.
This would allow users to exchange debit and credit card funds for crypto almost instantly. Simplex provides this capability to many well-known cryptocurrency exchanges, including Binance and Huboi.
However, this capability does not yet exist on DeFi and would completely level the space.
When the project becomes available to users, it will also add another capability to the DeFi space. The permissionless app is meant to be accessible to anyone, anytime, anywhere in the world.
From exchanges and financial institutions to individual investors, the project can be used to create new liquidity and trade assets across multiple chains.
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