It’s finally the big day for KAVA. Today marks an important milestone that was eagerly awaited by KAVA enthusiasts. If you don’t already know what KAVA DeFi is, this article will explain it in detail. Also, what performance enhancements have been added to version 5.1.
What is KAVA?
Here’s a quick overview of KAVA. The Kava platform uses three types of tokens: the KAVA token (hard token), and the USDX stablecoin. The native token of Kava’s Kava blockchain, the KAVA, is integral to the platform’s security, governance, as well as its mechanical functions. Kava is a multiasset DeFi platform offering stablecoins and loans to users of major cryptocurrency assets such as BTC, XRP and ATOM. Kava’s stablecoin USDX allows users to collateralize their crypto assets. Kava’s stablecoin offers a high interest yield, earning users more than they would with traditional savings accounts or cash.
Since the rise of cryptocurrency, Bitcoin and other Altcoins allow users to control their funds. They eliminated the need for banks or middlemen. Banks offer loans, money markets, and savings rates. This is what the crypto sector needs in order to become mainstream. Kava is here to help. Kava allows users to store and manage their digital assets and makes payments without having to pay fees or comply with financial regulators. Kava is a native cryptocurrency that uses the Cosmos SDK framework. It offers all the financial services that banks offer for multi-crypto assets. Financial institutions trust Kava as the DeFi infrastructure they most trust. The KAVA app is actually built on its own infrastructure which allows multi-asset use.
HARD App
Hard, an Application that enables multi-asset use, is based on KAVA’s infrastructure. It now has a fully functional money exchange. Although not all features are yet complete, the project is still on track to meet its timeline unlike other projects that vanish without following their rollout plans. Many changes are available to users thanks to the HARD app update:
For Lenders
Hodlers now have the opportunity to greatly benefit from HARD Money markets. To earn interest on Bitcoin, users can keep their Bitcoin in Hard V2 Bitcoin lenders can lend their Bitcoin to increase their exposure to Bitcoin. You don’t need to keep your money in the bank. Get a glimpse of the earnings that the banks are making. Users can lend their Bitcoins out to increase Bitcoin’s exposure. You can eliminate this third-party by using HARD and receive the full reward with higher interest rate.
For Borrowers
Users can now earn Bitcoin with their Bitcoin. This is the first time that users have ever been able to borrow money and increase their decentralized exposure to Bitcoin. You can borrow money instead of trading your assets and pay capital gains. You can also earn Bitcoin staking rewards. You can also put your Bitcoin in Hard protocol to earn Bitcoin from the borrower’s interest. This is exactly what happens when leverage is used to trade CFDs, but you can do it with minimal fees. Staking rewards can be earned as well as premium HARD tokens.
To leverage a position, users can either go long or borrow dollars. A user can borrow Bitcoin, put up dollars and then sell it if they believe BTC will fall. Users can borrow XRP, put dollars into the Hard money market and then sell it. This is interesting, as there is currently no way to shorten XRP.
COMPOUND
How does KAVA compare with COMPOUND?
HARD money markets can compete with Compound’s cross-chain Gateway chain. They are even ahead of other markets. Cross chain is the future and will continue to grow in 2021.
KAVA was able first to bring the borrow product to market and plans to continue to beat Compound by having a focused engineering team and a fast, efficient engineering team. Hard is already a cross-chain money market while Compound, the Ethereum money marketplace, will soon be branded as such. They were beaten by Hard for multi-assets.
Compound has put significant effort into this cross chain vision that Hard completed already so users can get Bitcoin on their Bitcoin. The Hard money market app, built on Kava, was launched by Kava’s community in Q3 2020. Compound plans to launch Gateway, their cross-chain solution, in Q3 2021. Kava is one year ahead. In Q1 2021, Kava has completed the application and made it crosschain. It is worth noting the first-mover advantage KAVA has over other KAVA varieties.
New Enhancements
What are KAVA’s NEW Enhancements?
KAVA today announced that it allows institutions to earn +45% APR for Bitcoin holdings without the need for counterparty risk. The Kava baselayer infrastructure was greatly optimized by the KAVA 5.1 upgrade, which includes its borrow side functionality.
In recent months, institutional investors have been paying more attention to Bitcoin. One indicator is the growing number of publicly traded companies with a Bitcoin treasury. These companies can now borrow on their assets thanks to Kava’s recent protocol update.
Bitcoin Rush
Institutional Investors are experiencing a BITCOIN RUSH.
Bitcoin has been fascinating over the past 12 months. The big news, besides the price hype is the fact that institutional investors are seeking exposure to the most popular cryptocurrency in the world. These companies instead of spending money on futures contracts they purchase Bitcoin as part their Treasury. These purchases have been made public by several companies, including MicroStrategy and Tesla.
This approach may seem risky to some. Bitcoin is a volatile asset and can experience wild price fluctuations. However, every company that has created a Bitcoin Treasury in the last few months has made a profit. Although the momentum can change at any time, it seems that Bitcoin acquisition and profiting from its price increase are working well.
These institutional investors are now invested in Bitcoin. One has to wonder what the future holds. They will either sell at a certain price or keep adding BTC to their Treasury. If this industry is to continue growing globally, it will be necessary to figure out the “retention” angle.
Although it took many years for these companies to become aware of Bitcoin, there are still a few reasons to make sure they keep their BTC portfolios. This missing piece may be finding new uses for the Bitcoin holdings of these companies.