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What is KAVA?

KAVA crypto is a stacking and control token. It serves to secure the network and gives owners the ability to vote for protocol changes. On this page you can find the current price of KAVA as well as a live price chart of KAVA. Also on our site you will find up-to-date information about DAI token and many other assets. 

The platform has two tokens: KAVA, a management and assurance token responsible for network security and key voting, and USDX, an algorithmically backed stable coin secured by a pledge of crypto assets.

The project offers secured credits and stable coins to users of major crypto-assets. The project team participated in developing blockchain solutions for projects such as Ripple, Tezos, Tendermint/Cosmos, MakerDao, etc.

How does KAVA work?

The platform has many features and benefits worth mentioning:

The ability to open debt positions against cryptocurrency assets from other blockchains, such as BTC, BNB, XRP, ATOM.

Algorithmically supported Stablecoin. Kava uses an oracle system to determine prices and keep the USDX price pegged to the U.S. dollar. USDX is a stablecoin that is backed by a pledge in cryptocurrency form.

The ability to lend directly between users, without counterparties. Participants can self-produce new USDX based on deposited collateral, and destroy it after debts are closed.

Management based on economic incentives. Stackers earn income from commissions, from user transactions, and from the creation of new blocks. They act as a lender of last resort in case the network is not properly maintained.

BitPapa – P2P Cryptocurrency Exchange

The project’s main product is the Kava CDP Platform, where users can pledge their crypto assets for a loan to USDX, the stablecoin division of the Kava ecosystem.

How does the KAVA platform work?

The principle behind the platform is quite simple:

  • Through a special web portal, a user connects to their wallet, such as Trezor or Trust Wallet, and sends BTC to the platform.
  • A custom-designed CDP system is created. The cryptocurrency is locked into the CDP as collateral.
  • Next, a stablecoin is created. The user withdraws the pledge in stablecoins from the system based on the value of the CDP.
  • The CDP is closed. The user can pay the debt plus a fee to unlock their pledge at any time.
  • The CDP auction begins. The principle is similar to a margin call: the system automatically liquidates the collateral if the debt-to-collateral ratio reaches a set value.
  • The cryptocurrency is returned. As soon as the debt is paid, the system burns the stablecoins and the collateral is returned to the user.

Using cryptocurrency KAVA

Token holders have a say in changing the blockchain or system parameters, including the total amount of USDX that can be issued, the types of collateral accepted, the debt-to-collateral ratio, and the amount of fees.

KAVA is also a digital asset for network security. Participants can delegate their voting rights to validators (dedicated nodes in the network responsible for confirming transactions) through an exchange service. Earning commissions from transactions and commissions from credits paid by users after CDP closes. A validator’s voting power is proportional to how many tokens it holds in its account.

The Lending Platform has two types of tokens: the KAVA token and the stable USDX coin. The KAVA token is the project’s native blockchain token, which is integral to the platform’s security, governance, and mechanical functions.

There are three main uses for the KAVA token:

  • Top-100 nodes validate security – blocks using a weighted linked bundle in KAVA tokens. The economic incentives for validators are to receive tokens in the form of reward per block, in the form of transaction fees, and in the event tokens are lost due to harsh conditions of abrupt reduction, such as failure to provide timely execution of transactions and double-signing of transactions.
  • Governance – KAVA is used to propose and vote on key parameters of the collateral position system (“CDP”). This includes, but is not limited to, the system’s global debt limit, types of collateral supported, their debt limits, collateral ratio, fees, and savings rate for USDX.
  • Lender of Last Resort – KAVA functions as a reserve currency in situations where the system is insufficiently collateralized. In such cases, a new token is minted and used to buy USDX from the market until the USDX becomes reliably oversecured.

The USDX token is also used in three ways:

  • Margin Trading/Leverage – Users who receive USDX from the platform mainly use it to buy additional crypto assets, leveraging their exposure to crypto assets.
  • Hedging with interest – traders can hold USDX as a stable asset in an attempt to limit exposure to volatile crypto assets. Holders can link their tokens and receive accumulated interest equal to the current USDX accumulation rate.
  • Stablecoin payments – Kava’s fast blockchain time and final blockchain end allows USDX to be used for general payment use cases.

Price prediction KAVA

Decentralization of finances is one of the trends in the cryptocurrency world, as it is a way to make banking services more free and accessible. For this reason, Kava, like other similar projects, has a chance to succeed.

Also, the digital asset’s affordable offering makes it very responsive to price fluctuations. Dividing The Market Capitalization By The Available Supply Always Determines Kava Price. This means that the smaller the available supply relative to the rising market capitalization, the faster the market crypto price KAVA grows.

On top of that, Kava announced their intention to remove about $1.5 million from the coin market to increase their price. The team explained that they are looking to pump up Kava’s ecosystem to build on the success of IEO on Binance.

The platform has a bright future, as the buyback program has the potential to bear good fruit. The logic is simple: the number of coins circulating in the market is decreasing, forcing the price to react faster to any pricing factors. You can follow all the KAVA coin price chart updates right on this page. 

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