The Kava 9 upgrade is expected to turn the corner for the protocol whereas most DeFi applications are still confined within the one-chain ecosystem as we can see more today in our latest crypto news.
Kava gained popularity as the first major platform that started offering cross-chain lending. Kava held a testnet event for Kava 9 that will test the capacity of the new main network. Since the Kava network previewed the mainnet upgrade a month ago, most were holding their breath to see how it will affect the price of KAVA as the previous testnet events caused the price to rise by $8. The protocol was generating interest in the upgrade with a series of partnerships in GameFi cloud services, security, and others.
Kava’s main goal is to bring more developers into the ecosystem which is a sticking point for the cross-chain lending protocol whose TVL consists of new own projects. In 2019, Kava launched strongly by winning the Binance launchpad project for the Year Award for the potential to shake up the blockchain industry. Most other Defi applications were confined within one chain ecosystem and Kava gained more popularity as the first major platform that will offer cross-chain lending.
Both Kava and the lending protocol HARD protocol, support the depositing and the lending cross-chain assets which allow investors to lend, borrow and deposit cross-chain assets from the Kava ecosystem. In 2019, Kava became a decentralized Layer 1 hub supporting cross-chain Defi applications that provide an accessible and permanent financial services infrastructure for the developers. In June 2020, Kava 3 mainnet upgrade was completed with the first cross-chain lending platform CDP that went live and supported BNB staking and USDX drawing.
Later in October, Kava 4 gateway mainnet upgrade was completed and the cross-chain crypto marketplace HARD protocol went live. In April 2021, Kava 5 mainnet officially launched and the defi platform completed the upgrade of the Kava 8 mainent. The Kava 9 main network upgrade is expected to go live during the first quarter of 2022. as we can see from the TVL growth, Kava TVL grew gradually for every iteration and upgrade that drives up the token price with it. Its token price has not maintained the same upward trend as its TVL with the current KAVA token price dropping nearly 60% from the peak since the last iteration.
Kava now consists of 3 main projects, Kava Mint, Kava Lend, and Kava Swap. There are not many assets and trading pairs that are available for lending in the project and there’s also a lack of liquidity in the ecosystem that revolves around the lending and swapping within the Kava ecosystem. Kava swap provides a high APY reward but the liquidity pool only supports USDX base trading pairs. The price of tokens in the Kava ecosystem was fluctuating. USDX is a stablecoin that is unstable because of the lack of application scenarios but its main use is to pledge on Kava lending.
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