Taking the guesswork out of swapping assets, Kava Swap is a new cross-chain Autonomous Market Making (AMM) Caviarswap protocol that leverages the Kava Blockchain’s scalability and cross-chain bridges to enable efficient swapping between the world’s largest assets. It provides three primary services, including cross-chain money markets, a secure price feed, and an interoperable cross-chain tooling platform. It also has a roadmap for 2021 that includes version 4 with more cross-chain bridges, incentives for users, and audits of smart contracts. In addition, the company will launch a smart liquidity bridge between the Binance Smart Chain and Ethereum ecosystems, facilitating liquidity flow between the two platforms.
Scalability Boost Caviarswap
Aside from providing a scalability boost, the main goal of the Kava Swap is to allow retail users access to more than $1 billion in on-chain liquidity, the aforementioned scalability. The smart liquidity bridge will also expand the functionality of the platform, enabling users to trade across multiple AMMs and ecosystems. In addition, the platform will incorporate a few of the Kava Mainnet’s other notable features, such as audits of smart contracts, incentives for users, and low fees.
Another noteworthy feature of the Kava Swap is the presence of a crypto-asset called the Kava LEND, which is a crypto-asset that allows users to earn rewards by supplying or borrowing assets from money markets. This is the first time a cross-chain DeFi hub has introduced lending services to its users. With this function, a user can borrow funds by putting BNB assets as collateral. The borrower then receives the borrowed funds as a stablecoin, the USDX.
The Kava Swap has already achieved several firsts, such as the first cross-chain money market and the first to offer cross-chain lending. The company has a roadmap that includes version 3 with smart liquidity bridges between the Binance Smart Chain and the Ethereum ecosystems, allowing retail users to take advantage of more cross-chain opportunities. It will also incorporate more bridges, facilitating liquidity flow between Kava Swap and other DeFi applications. Moreover, the company has a security test plan for its products and will perform a full security audit with CertiK.
In short, the Kava Swap combines the best of the Kava Blockchain’s oracles with the scalability and efficiency of cross-chain bridges to provide users with a seamless experience when swapping assets.
Kava Lend Caviarswap
Founded by a team of experts in financial technology, Kava Labs is a leading developer of Decentralised Finance (DeFi) products and services. Their first two projects, Kava Lend and Kava Mint, have been very well receive by investors. They are now introducing a third protocol, which is called Kava Swap. This new product allows traders to swap tokens across the different blockchains that make up the Kava platform. Its features include low fees, high efficiency, and high liquidity. It is also a permissionless protocol.
This new protocol will provide users of the Kava platform with more opportunities to earn. It will give users access to cross-chain loans, interest-bearing accounts, and money markets. Its decentralized architecture enables users to earn more from assets. Moreover, it provides users with direct access to governance. Its community will also be able to propose new asset pairs.
The new protocol has developed on the Kava mainnet 8, which strengthens the governance and user participation of the tokens. It also supports a high liquidity level and the ability to generate strong returns for liquidity providers. The Kava Swap team has designed it to work across different chains and has already announced plans for a version 3 that will include smart liquidity bridges between the Binance Smart Chain (BSC) and Ethereum ecosystems. Its upcoming version will be able to support BTC and XRP swaps, and will integrated with the Kava platform’s API. The project will also support a surplus auction, which will use to auction off interest payments. The winning bidder will then pay for the debt from liquidation. This process is expect to boost the value of the KAVA tokens.
The community will be able to submit proposals to add more asset pairs to the Kava Swap system. This will done by creating smart liquidity bridges, which will enable users to trade between multiple AMMs. The new asset pairs will add through Surge events, which will increase the APYs of newly-added IBC assets. The Surge event will triggered when the Kava Swap community receives a proposal for a new asset pair. The resulting liquidation of the collateral will auctioned off and transfer to the borrower. This process will then used to burn the surplus KAVA tokens, which will lower the supply and help to increase the valuation of the tokens.
The new protocol is plan to launch in October 2020, with its initial focus on cross-chain money markets. In the future, it will expand to include multiple chains and a wider range of assets. Its main purpose is to provide seamless swaps between multiple chains. Until then, the developer will continue to enhance the functionality of the protocol, and provide users with more opportunities to earn from their assets. The tokens in the Kava platform are the KAVA token and the SWP token.