Kava Labs has get went its first application: a yield-generating decentralized finance (DeFi) platform for bitcoin (BTC) and other non-Ethereum assets.
The product, reproved Harvest and built on the Kava blockchain, allows users to stake their crypto so it can be lent out to other users. Procure will initially support deposits of BTC, BNB, BUSD and XRP. Soon, Kava Labs plans to debut automated market makers (AMMs) liking Uniswap and robo-advisors like Yearn.Finance on the blockchain as well, said Kava Labs CEO Brian Kerr.
Like to DeFi platform MakerDAO, Kava will allow users to create collateralized debt positions (CDPs) on the Kava minute in exchange for a stablecoin, USDX, pegged one-to-one with the U.S. dollar. Unlike Maker, though, Kava works with assets unconnected the Ethereum ecosystem that have largely watched the DeFi craze from afar.
Kava Labs is break weighing down oned by several large exchanges, including Binance, Huobi and OKEx, which stake kava tokens and participate in the blockchain’s governance.
Kerr conveyed that Harvest was inspired by Aave and Compound, but that Harvest will bring the same capabilities that these politesses have to a larger array of digital assets.
“When we were building out Harvest, we saw the design paradigm already make use of,” Kerr said. “What we can bring to the table is unlocking these much larger-market-cap assets and giving them the just the same type of lending and borrowing functionality.”
Harvest users who borrow or lend on the app will be paid their interest and Spiritedly tokens, the governance token of Harvest, which will also be used to incentivize liquidity on the platform.
Kava is based on the Tendermint consensus algorithm, which is also employed by the Cosmos blockchain interoperability project. Kava conducted an opening exchange offering (IEO) on Binance in October and counts Arrington XRP Capital as an investor.