Kava Network or Kava.io is a super-fast layer-1 blockchain network. This single network combines Ethereum’s developer power and Cosmos’ interoperability under a single roof. Kava Earn is the new venture by the network that would help put its ability to good use in DeFi.
The new Kava Earn will be a platform that bundles up various functionalities like Kava Mint, Kava Lend, and Kava Swap under a unified and simplified umbrella. Users can use the custom-made strategies to get their preferred returns safely.
The initial offerings from Kava Earn will be designed to optimize the returns on BUSD. The team has chosen to work with BUSD to minimize the platform’s investment risks. BUSD is one of the most stable assets in the crypto ecosystem, with fiat money and treasury bill reserves.
The trading on Kava Earn is as simple as deposits and withdrawals. There will be multiple notifications when users withdraw or deposit their BUSD holdings on the trading strategies platform. Kava Earn chooses the best strategy based on the investment value and the risk factors involved.
To provide safe strategies with high yields, Kava uses the native USDX tokens. BUSD Earn can be used to mint USDX, and the minted tokens can be sent to Lend for higher incentives thanks to its position as the native stable coin.
In this strategy, users can keep their BUSD ownership as the tokens are not swapped but just converted. It helps investors avoid any loss due to the loss of value in USDX. The USDX leveraging increases their chances of high incentives while limiting their exposure to the token.
The platform expands further with more obvious stable coin choices like USDT and USDC. The team will also revise the currently used strategies using protocols when the new tokens are added to the platform. They also hope to test the network for potential liquidation risks and chances of impermanent loss as the platform expands.
Moving forward, they will launch new protocols and dApps to enhance the platform’s utility. They would even vote on new functionalities that could further mitigate the risks involved in trading on Kava Earn.
The new venture from Kava Network is developed to set out in the footsteps of Yearn Finance and Instadapp Lite. In addition to utilizing the demand, this will bring inclusivity to the current trading environment.