Kava, the DeFi lending platform launched a new platform built on the Cosmos SDK and BNB is the first asset to go live as we are reading in the Binance Coin news.
The minters of the Kava USDX stablecoin will be eligible to receive rewards for 2021. The Maker competitor Kava, is integrating the BNB as collateral to mint its stablecoin USDX as the Kava DeFi lending platform gains a further boost today. Built on the Cosmos SDK, Kava can interact with different blockchain assets and the first one to be supported is Binance’s BNB extending its features to the Binance Chain users.
Rewards are based on the total amount of USDX you mint.
— Kava Labs (@kava_labs) June 10, 2020
The platform operates similarly to the Maker and other DeFi lending dapps. The BNB holders can deposit their tokens into the platform as collateral and a mint loan in the stablecoin of the platform called USDX. The CEO and founder of Binance Changpeng Zhao said:
“We are excited that BNB users can now get access to DeFi products with Kava’s lending platform. By accepting BNB as collateral on its lending platform, Kava is creating another use case for BNB, which brings additional value for BNB users.”
The lending feature will be available via supported wallet and multiple exchange applications including Trust Wallet and the Cosmostation. To celebrate the launch, Kava is running a promotion called ‘’Crypto Payday.’’ The users that mint USDX tokens with their BNB tokens as collateral entered the pool now and will receive a share of 74000 KAVA tokens which is about $85,000 each week. The rewards will be distributed every Wednesday for the next year with the first allocation happening on June 24. The total prize pool reached 3.84 million KAVA tokens worth more than $4 million.
The DeFi ecosystem has been mainly based on Ethereum but this comes with its own issues. The Gas fees on Ethereum can skyrocket at all times because of the high demand and the platform struggles with the scalability issues. Other projects such as Ren VM aims to solve the challenges of interoperability that will help to ensure that DeFi can thrive beyond the boundaries of Ethereum. Ethereum’s DeFi is back at $1 billion as the asset prices helped the entire DeFi space return to over $1 billion in locked-in value
Most of the value locked in Defi comprises of Ether and stablecoins. ETH’s 85% asset prices increase since April 2019 could be the main reason for the surge as more of the traders are coming back to lending protocols to increase their leverage in the spot market positions.
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