How Kava will Transform the Crypto Space

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Decentralized finance (DeFi) presents a way in which crypto traders can access services without a central authority. DeFi has made it easy to transact in any part of the globe using a smartphone connected to the internet. Financial services are accessed online, giving an equal opportunity to anyone from any place around the world. Remittance services have become cheaper due to the ease of making cross-border payments.

DeFi has made it easy to access financial services, including loans and money transfer, with limited barriers unlike in the past. One such DeFi platform set to transform the crypto space is Kava — The world’s first cross-chain CDP platform offering collateralized debt and stablecoins to owners of major crypto assets (BTC, BNB, ATOM, XRP, etc.). Kava has a bright future in the crypto space thanks to its unique features and a dedicated development team. This piece will look in detail how Kava is set to transform the crypto space for the better.

Kava: Brief Overview

Kava seeks to be the first DeFi platform offering collateral loans, leverage, and stable coins for crypto assets, especially the major ones. These major crypto assets include BTC, ATOM, XRP, BNB, among many others. It aims at making them compatible with collateral loans, leverage, and stable coins.

Kava is known for its two main products, including Kava Switch and CDP Platform. Kava switch enables users to swap cryptocurrencies based on the blockchains. The CDP platform, on the other hand, allows users’ access to collateralized loans. Kava looks to work and iterate more quickly than other existing DeFi solutions that have existed before. Kava accepts crypto assets as collateral. Users can get loans for themselves without counterparty and not considering a credit score.

The loans are issued in terms of stable coins called USDX. The steps involved include depositing crypto (either as BTC) then creating a CDP (Collateralized Debt Position). A loan in the form of stable coins is withdrawn. The loan is paid with a stability fee to unlock the collateral. If the collateral drops below a given amount, it is liquidated. On repaying the debt, the user can access the collateral. The distinct feature of Kava is that it offers collateral to any crypto asset.

How Kava will transform the Crypto Space

Kava accepts any major crypto asset. The fact that any of the major crypto assets, including BTC, ATOM, and others, can be made compatible to enable accessibility to the collateral loans, leverage, and stable coins gives this platform an upper hand over the other DeFi platforms. It is the first DeFi platform to offer such types of services to crypto users, which is to their advantage.

This diversity in the way it works makes it open for users to own any kind of major crypto asset. This platform is open to many crypto-asset owners as it is inclusive of all major assets which are unique to any other DeFi platform.

Loans given in terms of stable coins in the Kava platform are given out without having to take into consideration other credentials such as credit score and counterparty. This makes it easier for those joining the platform to access the loan. One should not be a member of the platform for long before qualifying to be given the collateral loan. This makes the loan easy to access by any crypto user. Any crypto user would go for a quicker and efficient loan, and Kava is offering just that.

The use of stable coins is another important and distinctive feature that makes Kava a top platform among other DeFi platforms. Kava offers loans in terms of USDX. The USDX can be leveraged by the user or used to purchase other crypto assets, thus exposing the users to more crypto assets.

The users can also bond their USDX and get interests as well. The USDX is therefore useful in earning interests and some profits to pay the loan at the end in order to get the collateral back. It offers a chance to invest in the crypto world and earn interests from the loan given.

Kava tokens aid in participating in the governance of the system. Those having Kava tokens can decide the types of collateral they would want the system to support and the number of stable coins to be created. Kave stands out as one of the platforms that allow its users to participate in the governance sector by airing out some of their ideas. Users having Kava tokens can participate in determining significant parameters on the CDP system. This looks at the collateral debt limits, fees, among other issues across the platform.

The users using the Kava platform give loans to themselves. There is no centralized authority to help carry out the process. There is also no restriction in terms of the credit score or the need for a counterparty. A user gets a loan directly after using the crypto asset to access the collateral loan. This has made it easier to access the loan as the user is the only one who oversees the process of getting the loan.

Final thoughts

Kava is a DeFi platform that is unique and highly recommended by most crypto experts. Its distinctive feature is based on the user to control everything within the platform to access the collateral loans is one special part. It is a user-friendly platform that sets new dawn to the DeFi platforms’ technology and a good innovation.

The Kava tokens offer the ability to aid in governance, showing the inclusiveness of all the users to the betterment of the platform. The ability to use most of the significant crypto assets in the platform makes it open to many crypto users. This feature is distinctive to all the other DeFi platforms and enhances their accessibility.

Kava gives users a sense of financial freedom thanks to the lack of a central authority. The loans given have no attachments as it is independent of credit score and any other factors. Any user in the platform can, therefore, access the loan without having to go through a lot of steps. The platform is easy to use, and any person can join and enjoy the benefits experienced as a member. This new technology is a boost to the crypto space world and is highly recommendable to any new user to venture into the platform and get the most out of it.

Featured image courtesy of Binance Research.

Originally published at https://cryptopress.news on March 14, 2020.

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