Kava Network (Thread)

DeFi $KAVA Cross-chainAMM

Imagine $ETH and $ATOM combined into one single permissionless L1 blockchain…

Comes @kava_platform! Featuring an optimized co-chain architecture that is way scalable and decentralized.

With the co-chain architecture, Kava unites ETH’s speed and ATOM’s interoperability powered by the Tendermint Consensus engine!

Advantages:

Flexible Deployment (either on $ETH/$ATOM)
On-Chain Incentives
Seamless Interoperability
Infrastructure powered by @cosmossdk @cosmosibc $LINK @akashnet_
Cross-chain support from $ATOM $BNB $CELR $CKB $HBOT
DeFi ecosystem @Kava_Mint @hard_protocol @Kava_Swap
Insurance support from @CertiKTech

Backed by VCs: @2020vc, @DigiAssetFund, @IOSGVC, @_hardyaka, @Lemniscap, @robotventures, @trgcapi, @HashKeyGroup, @YieldVentures

Founded by brilliant people: Brian Kerr, @Scott_Stuart_, Ruaridh O’Donnell, and @KevinJYDavis

Fret not! The protocol has been thoroughly audited by @CertiKTech without any critical errors.

https://www.certik.com/projects/kava

Kava’s network architecture revolves around the co-chain!

Think of it like this, ETH and ATOM act as two hemispheres of the brain and KAVA is the central part of it.

Tendermint Consensus engine, relying on BFT, powers the bridge (Translator Module) between co-chains governed by the DAO

The interesting part isn’t about Kava, but rather its implementations. @hard_protocol & @Kava_Swap both add new functionalities to the ecosystem!

$HARD is the lending app for Kava, providing an autonomous money market and only attainable by supplying/borrowing

$SWP is the token for Kava’s swap

$USDX the stablecoin on the ecosystem softly pegged to USD, only minted when a Kava CDP is opened (similar @MakerDAO $DAI)

source

Exact price of USDX is determined by market force given the soft-pegged nature

$KAVA powers the whole ecosystem offering Security, Governance, and Incentives.

Token Metrics

Total Supply: 183M

Circulating Supply: 175M

Circulating Rate: 95.94%

Token Staked: 107M

Staked %: 58.47%

Inflation: 34.23%/annum

KAVA’s most dominant use case is the staking rewards! Staking $KAVA and supplying $AKT will earn all the rewards in the picture below.

State of Kava

Block Height: 1.13M

Validators: 20

Top 3 Validators by Voting Power: 24.50% 11.20% 9.35%

TVL: $627.58M

TVL to MCap: 82.32%

TVL dominance is led by $KAVA (61.21%), $HARD (32.63%), $SWP (6.16%)

Another metric worth taking a look for is Penetration Rate. Here, Kava’s TVL is compared with $ETH + $ATOM TVL

Penetration Rate = 0.53%

Do note, that Kava has just launched in May 2022; Kava still has the potential to be a new DeFi primer that unites both ecosystems!

Roadmap:

Q4 2021

$ETH co-chain dev begins
Testnet: Loan Wars (Incentive)

Q1 2022

Mainnet IBC Upgrade – $ATOM
Pioneer Program Launch (Incentives)
$ETH Alpha

Q2 2022

$ETH Public Beta
$ETH Bridge Beta
Kava Mainnet Launch
$ETH Bridge Launch
Liquid Staking
GameFi + NFT Incentive
DeFi Incentive

Q3 2022

Kava Foundation Launch
@CosmWasm Support
#BSC Bridge Launch

Q4 2022

$BTC Native Bridge Launch
$MINT Token Launch

TL;DR Think of Kava Network as the intermediary bank between $ETH and $ATOM combined with the stablecoin of $DAI!