Kava Labs has launched its first utility: a yield-generating decentralized finance (DeFi) platform for bitcoin (BTC) and different non-Ethereum belongings.
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 assist deposits of BTC, BNB, BUSD and XRP. Soon, Kava Labs plans to debut automated market makers (AMMs) like Uniswap and robo-advisors like Yearn.Finance on the blockchain as effectively, mentioned Kava Labs CEO Brian Kerr.
Similar to 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. Unlike Maker, although, Kava works with belongings exterior the Ethereum ecosystem which have largely watched the DeFi craze from afar.
Kava Labs is backed by a number of giant exchanges, together with Binance, Huobi and OKEx, which stake kava tokens and take part within the blockchain’s governance.
Kerr mentioned that Harvest was impressed by Aave and Compound, however that Harvest will carry the identical capabilities that these protocols should a bigger array of digital belongings.
“When we had been constructing out Harvest, we noticed the design paradigm already working,” Kerr mentioned. “What we are able to carry to the desk is unlocking these a lot larger-market-cap belongings and giving them the identical kind of lending and borrowing performance.”
Harvest customers who borrow or lend on the app can be paid their curiosity and HARD tokens, the governance token of Harvest, which will 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 mission. Kava performed an preliminary alternate providing (IEO) on Binance in October and counts Arrington XRP Capital as an investor.