Kava Swap Mainnet launch aims to create DeFi hubs
Kava Labs launches its new cross-chain liquidity hub for DeFi, Kava Swap.
Earlier this year, Kava Labs announced the launch of its new project, “Kava Swap”. The new platform will be one app for all DeFi applications and financial services across the space.
Its main purpose is to enable the aggregation of capital, which can then be seamlessly deployed across various blockchain ecosystems and other DeFi instruments.
Initially, Kava Labs built its own blockchain ecosystem, which led to the development of DeFi applications. Earlier this year, the network published a roadmap for the coming year. In addition to the launch of Kava Swap, Kava is planning two other cross-chain bridges, Ethereum and Bitcoin.
In its official article, Kava stated that the introduction of Kava Swap is the “synergistic third pillar” of the DeFi ecosystem it creates.
So what’s the trade-off?
Kava Swap is an Autonomous Marketplace Creation Protocol (AMM), which works across chains to utilize key features of the Kava platform.
Swap allows users to swap assets between different blockchains and place their funds in market making pools. If this is done, users have the opportunity to earn feedback on what is staked.
The platform has three main functions:
- Swap: This allows users to easily swap or swap between assets with guaranteed liquidity.
- Supply Liquidity: Users can make their digital assets productive by using them as capital in pools of liquidity. AMM uses liquidity pools on Kava Swap when swapping between assets.
- Earn: Those who provide liquidity through the capital put into play in cash pools, earn both fees from the traders and the Kava Swap Token. Kava Swap Tokens are the governance tokens of the application.
As it stands, the Kava Swap roadmap features four versions of the app. With each subsequent release, the platform adds bridges between other decentralized ecosystems. In addition to the new cross-chain bridges, governance and scalability updates accompany each new release.
One of the V1 apps supports trading between BTC, XRP, BNB, BUSD, USDX, KAVA, HARD and SWP. At this point, adding new assets and liquidity pools is possible through on-chain governance votes.
Kava Swap Tokens and Governance
As with all DeFi applications, governance tokens are essential for operating a fully decentralized space. On Kava Swap, the tool to maintain decentralization is the Kava Swap token. It gives community members a voice in building the future of the app.
Those who hold Kava Swap tokens manage the assets available on the platform, platform fees, and the distribution of rewards. At the start of the launch of Kava Swap, 250 million Kava Swap tokens will be issued. However, they will only be accessible for more than 4 years.
The developers designed Kava Swap tokens with no intention of seed or private sale. Instead, they will be released in stages with specific allowances.
- 55% – Community: these funds are intended for cash-pooling incentives, KAVA staking incentives, airdrops and community-elected activities.
- 25% – Cash.
- 15% – Team.
- 5% – Ecosystem.
It should not be confused that the KAVA token, although made on the same ecosystem, is different from Kava Swap tokens. This is due to the full sovereignty of the decentralized community that Kava Swap intends to promote.
Kava Network speeds up with DeFi
Developments on the Kava network accelerated during the last semester.
Last month, the Network Native Token (KAVA) peaked slightly above its resistance point. Although he failed to break through, he still continues on his upward trajectory.
In addition to the token finding a stable base, the network has performed bit shifts in DeFi space. In June, Kava partnered with the EU licensed financial institution Simplex. Together, the duo are working on the first “fiat-to-DeFi” ramp.
This would allow users to exchange their debit and credit card funds for crypto almost instantly. Simplex offers this capability to many leading crypto exchanges, including Binance and Huboi.
However, such a capability in DeFi does not yet exist and would completely level the space.
As Kava Swap becomes available to users, this will also add another capability to DeFi spaces. The permissionless app should be accessible by anyone, anytime, anywhere in the world.
From stock exchanges and financial institutions to individual investors, Kava Swap can be used to create new liquidity and swap assets between chains.
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