Kava Labs has launched its first utility: a yield-generating decentralized finance (DeFi) platform for bitcoin (BTC) and different non-Ethereum property.
The product, known as Harvest and constructed on the Kava blockchain, permits customers to stake their crypto so it may be lent out to different customers. Harvest will initially help deposits of BTC, BNB, BUSD and XRP. Quickly, Kava Labs plans to debut automated market makers (AMMs) like Uniswap and robo-advisors like Yearn.Finance on the blockchain as nicely, stated Kava Labs CEO Brian Kerr.
Much like DeFi platform MakerDAO, Kava will enable customers to create collateralized debt positions (CDPs) on the Kava protocol in alternate for a stablecoin, USDX, pegged one-to-one with the U.S. greenback. In contrast to Maker, although, Kava works with property outdoors the Ethereum ecosystem which have largely watched the DeFi craze from afar.
Kava Labs is backed by a number of massive exchanges, together with Binance, Huobi and OKEx, which stake kava tokens and take part within the blockchain’s governance.
“Once we had been constructing out Harvest, we noticed the design paradigm already working,” Kerr stated. “What we will carry to the desk is unlocking these a lot larger-market-cap property and giving them the identical sort of lending and borrowing performance.”
Harvest customers who borrow or lend on the app might be paid their curiosity and HARD tokens, the governance token of Harvest, which may even be used to incentivize liquidity on the platform.
Kava is constructed on the Tendermint consensus algorithm, which can also be employed by the Cosmos blockchain interoperability venture. Kava performed an preliminary alternate providing (IEO) on Binance in October and counts Arrington XRP Capital as an investor.