The Kava Network was founded in 2018 by Kava Labs, a company focused on making financial services easily accessible to all. On 14 November 2019 the Kava mainnet launched.
The Kava blockchain acts like a decentralised bank. It’s the first DeFi platform to offer users the possibility to borrow and lend major crypto assets without the need for a traditional financial intermediary, according to its whitepaper. It supports a number of cryptocurrencies, including Bitcoin (BTC), Ripple (XRP), Binance (BNB) and Cosmos (ATOM).
What is Kava (KAVA)?
1. Who Controls Kava (KAVA)?
Kava Labs is the primary contributing team to the Kava Network. The company’s mission is to establish the Kava Network as a top-five Layer-1 blockchain by driving properly empowering and incentivizing the developers that drive growth and usage for Layer-1 ecosystems.
Kava Labs was co-founded by Brian Kerr, Ruaridh O’Donnell, and Scott Stuart.
The current CEO of Kava Labs is Scott Stuart, a former professional poker player and serial entrepreneur. Scott served as the Head of Product for Kava Labs from 2017 to 2021, when he took over as CEO from Brian Kerr.
Brian Kerr previously worked as an advisor for several digital asset-focused companies, including Snowball and DMarket.
Ruaridh O’Donnell is an MSc Physics graduate and former engineer and data analyst at Levelworks.
Kava Labs has approximately 40 full-time employees distributed across North America, Asia, and Europe.
Kava was developed in 2018 by Kava Labs, a for-profit foundation, and was co-founded by Ruaridh O’Donnell, Brian Kerr, and Scott Stuart. The team organized a public token sale for 6.5% of the total supply of KAVA coins. The token sale was organized on Binance exchange, while the team raised around $3 million.
In August 2020, the Kava lending protocol officially went live on the Cosmos platform, allowing BNB as collateral for crypto loans in USDX. Since then, Kava has recorded over $8 million worth of loans in USDX, and about $24 million in BNB locked as collateral.
2. Who Created Kava (KAVA)?
The company’s mission is to establish the Kava Network as a top-five Layer-1 blockchain by driving properly empowering and incentivizing the developers that drive growth and usage for Layer-1 ecosystems. Kava Labs was co-founded by Brian Kerr, Ruaridh O’Donnell, and Scott Stuart.
KAVA Labs is the very first DeFi platform to have been built on the Cosmos Ecosystem. The network is developed to fill out the need for four different issues. Firstly, becoming the first-ever dedicated DeFi platform to offer multi-collateralized loans and stable coins for significant digital assets.
Secondly, the network aims to serve the blockchain community by offering decentralized leverage and stability to its users. Their third goal, being the first to market, was obtained upon launch of KAVA’s Mainnet. Finally, their fourth goal is to become the number one DeFi application.
The latest KAVA project is in collaboration with Chainlink Oracles. They have onboarded Chainlink’s reference price oracles onto their blockchain. With this collaboration, Kava makes it possible for any Cosmos Hub to obtain a variety of DeFi data. Useful data set examples to include prices for fiat currency, commodities, and cryptocurrencies. See here for more information.
3. Kava (KAVA) Pros and Cons
Kava (KAVA) Pros:
- Generous support for cross-chain assets.
- Provides a yield earning option where USDX stablecoins are minted and contributed to a Hard protocol.
- Provides Masternodes and staking opportunities and offers excellent rewards for top 100 validators.
- Autonomous system for burning coins to regulate supply thus increase demand and leave the currency deflationary.
Kava (KAVA) Cons:
- Has a Kava Safety Committee which can roll back the chain. This creates questions around it’s decentralization.
- Kava voting power is highly concentrated among the top validators (15-10-2021). See coin distribution above for more info.
- Has 20% yearly inflation.
4. The Difference Between Kava (KAVA) and Traditional Currencies
The main difference between them is, the traditional currency is a centralized system and bitcoins are decentralized one and peer-peer systems. Hence there are no central authorities to regulate rules and regulations on a bitcoin transaction. But a traditional currency is strictly regulated by the governmental authorities. Both the bitcoins and fiat currency have values which can be used for buying and selling of goods in the market.
- Flexibility
With traditional currency functioning for five days a week and die to transaction restriction, there is a chance of freezing of currency. There is no limit in the number of currencies, being printed, and hence when there is inadequate currency, it will affect the buyers and sellers, resulting in inflation.
- No Fraudulent Activity
If you want to transact with a traditional currency system, the users have to provide personal details like name, address, phone number, and lots more. So, with the internet technology, the malicious user will be able to hack the account details of the traditional currency system easily. Traditional currency can suffer from double-spending, where the same money is used for more than one transaction.
- Reduced Cost
In a traditional banking system, for making a national transaction, it will take 2-3 working days, and the transaction fees will be high. In the case of international transactions, the transaction fee will be very higher, and it will take 15 days to complete the transaction. In a Cryptocurrency system like bitcoins, there is no transaction fee for making a national transaction. The transaction will also take place in seconds or within 24 hours.
5. Is It Safe To Use Kava (KAVA)?
In a nutshell, Kava.io increases the number of digital assets crypto users can borrow, including BTC, BNB, and XRP, among others. Users earn rewards weekly in the form of KAVA by collateralizing their cryptos to mint the USDX. The total volume of KAVA rewards depends on the amount and type of collateral the user minted.
Kava.io aims at launching a Ripple-backed stable coin that will power its CDP (collateralized debt positions) like Maker DAO. The protocol is currently being supported by Cosmos, Ripple, and hedge funds like Arrington Capital. The Kava.io blockchain recently launched its mainnet. This blockchain is supposed to include various cryptocurrencies that are Cosmos based to increase the efficiency of DeFi services.
Kava allows users to lock assets in special smart contracts and borrow USDX.
On the back-end, this creates what is called a collateralized debt position (CDP), a contract designed to ensure the value of USDX remains pegged to the U.S. dollar.
Kava seeks to streamline the whole sector of decentralized lending by skilfully integrating a variety of proprietary technologies. Kava was developed to provide stablecoins and decentralized lending against all major crypto assets in a simple and transparent way. Consequently, Kava has become a pioneer in the DeFI sector that makes financial services accessible to one and all.
How Does Kava (KAVA) Work?
The Kava lending protocol depends on the functionality of smart contracts used by the protocol to facilitate a peer-to-peer lending system. Users can lock their funds in smart contracts, which then results in minting new USDX tokens that users can take as a loan based on collateral. In this process, the next step is automated to create a special smart contract that locks up the value of USDX to match the value of the US dollar to neutralize volatility that is otherwise a characteristic of the cryptocurrency market. This is called a collateralized debt position.
Users can create CDPs by depositing cryptocurrency into smart contracts through the use of digital wallets that can be connected to the system. Once the funds are deposited, the Kava system will automatically lock the funds in a smart contract. The system then mints new USDX stablecoins based on the deposited funds, so users can take a loan in USDX.
To close the CDP and retrieve the collateralized crypto, users need to cover their debt and pay a lending fee. When the user closes the CDP, the initial collateral is deposited back to the same wallet, and the Kava system burns, i.e. destroys, loaned USDX. The system also relies on a collateralization ratio to protect the protocol from volatility and ensure that USDX is over-collateralized to guard against the devaluation of the collateral.
How to Make Money with Kava (KAVA)?
Here are quite a few approaches for us to make money with Kava (KAVA), such as Mining, Buying & Hold Bitcoins, Accept Payments in Kava (KAVA), Earning Kava (KAVA) by turning into an Affiliate, Lending Kava (KAVA), and Micro Earnings, and Trading.
- Kava (KAVA) Mining
- Buy & Hold Kava (KAVA)
- Accept Payments in Kava (KAVA)
- Determine how you’ll use Kava (KAVA)
- Find a Kava (KAVA) wallet
- Find a Kava (KAVA) payment processor
- Accept Kava (KAVA) payments
- Becoming an Affiliate
- Lending Kava (KAVA)
- Micro Kava (KAVA) Earnings (Faucets, Offer Wall, Short Links, Surf Ads……)
- Kava (KAVA) Games
- Micro Kava (KAVA) Tasks
- Trade Kava (KAVA)
How to Buy Kava (KAVA)?
1. Things To Know Before You Buy Kava (KAVA)
Buying Kava (KAVA) and holding onto it in hopes it will appreciate in value, is the most common form of “investing”. As with all investing, you should never invest more than you are willing/able to lose. This is especially true with Kava (KAVA), since it’s still a very risky investment.
The most important thing to keep in mind when buying Kava (KAVA) is to make sure to buy only from exchanges that have proven their reputation.
Another key tip is to make sure you don’t buy all of your Kava (KAVA)s in one trade. Instead use a dollar cost averaging method—buy a fixed amount every month, week or even day throughout the year. This ensures that you buy the most Kava (KAVA) when it’s on the rise, and less when it’s going down in price.
2. How to Buy Kava (KAVA) on a Crypto Exchange
- Coinbase – Secure online platform for buying, selling, transferring, and storing cryptocurrency.
- eToro – Trade and invest in a diversified portfolio, starting at $10, or practise risk-free with a virtual portfolio.
- Bitfinex – Digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.
- Binance – Low trading fees, a generously wide range of leverage, and high liquidity.
- KuCoin – A large cryptocurrency exchange offering the ability to buy, sell, and trade cryptocurrencies
3. How to Buy Kava (KAVA) with Cash
- Find a seller in your area who accepts cash.
- Select amount of coins and place an order.
- Receive account number from the seller.
- Deposit cash into the seller’s account.
- Upload your receipt to prove you made the deposit/trade.
- Receive Kava (KAVA)!
4. How to Buy Kava (KAVA) with Credit Card
Not all platforms will allow you to use a credit card to make your Kava (KAVA) purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. Many credit card companies process cryptocurrency purchases via credit card as cash advances, which can incur high interest rates, among other fees.
5. How to Buy Kava (KAVA) with Paypal
- Login to Paypal and Select Cryptocurrency
- Select ‘Kava (KAVA)’
- Select ‘Buy’
- Choose How Much You Want to Buy
- Select Payment Method
- Hit the ‘Buy’ button
6. Should I Buy Kava (KAVA) In 2022?
Algorithm-based forecasting service Wallet Investor gave a bullish KAVA crypto price prediction, as of the time of writing (29 April), calling it a “not so good long-term investment”.
Based on its analysis of the cryptocurrency’s past performance, the forecasting service predicted that KAVA could trade at $5.57 in 12 months and $7.92 by April 2027.
In its KAVA coin price prediction DigitalCoinPrice supported the bullish Kava forecast, seeing the coin average $6.98 in 2022. The coin’s price was estimated to rise to $10.41 in 2025, and then on to $12.12 in 2027, and to $24.36 in 2030.
Note that these algorithm-based Kava coin price predictions can be wrong. Forecasts should not be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
Read More: How to Buy Kava (KAVA)?
How to Sell Kava (KAVA)?
1. Things to Know Before You Sell Kava (KAVA)
To get started with Kava (KAVA), you’re going to need three things: an exchange, a wallet and the knowledge of how to buy the cryptocurrency. This last one is easy with our guide on how to buy Kava (KAVA), but the other two are still important. The exchange allows you to buy Kava (KAVA) from sellers, and the wallet gives you somewhere to store it long term.
When choosing an exchange, you should look for one with many users, good customer support and low fees. Three particularly popular exchanges with newcomers are Coinbase, Robinhood and Binance. However, there’s nothing really tying you to a specific exchange, so you can try new ones and quickly change at any time.
On the other hand, wallets can be much more complex. “Cold wallets” — physical devices holding cryptocurrencies offline — come with a steep up-front cost, but “hot wallets” — pieces of software that hold your coins on a computer — are often less secure. However, since hot wallets are fine for short-term storage and free to set up, it’s a good idea to start with them.
2. Sell Kava (KAVA) in Cryptocurrency Exchanges
- Step 1: Set up an exchange account
- Step 2: Transfer your Kava (KAVA) to your exchange wallet
- Step 3: Place a sell order
3. Sell Kava (KAVA) in P2P Trading
- Step 1: Go to the P2P Trading Page
- Step 2: Choose to Sell and Set Your Currencies
- Step 3: Find a Buyer
- Step 4: Choose How Much You Want to Sell
- Step 5: Send the Offer
- Step 6: Confirm the Release
4. Sell Kava (KAVA) in Kava (KAVA) ATMs
- Step 1: Choose withdraw cash
- Step 2: Choose Kava (KAVA) (these machines normally may support other cryptocurrencies)
- Step 3: Choose amount to withdraw
- Step 4: Send Kava (KAVA) to given address QR code
- Step 5: Receive cash immediately as Kava (KAVA) transaction is propagated on the network
How to Get Free Kava (KAVA)?
Most genuine websites that allow you to earn free Kava (KAVA) require you to spend money on other things like buying cloud computer mining power, connecting your CPU for mining, playing a game, or completing micro-tasks.
In other words, they offer free Kava (KAVA)s as an advertisement for their services. Otherwise, it takes time and effort to get free Kava (KAVA) given its current high value.
- Kava (KAVA) Faucet
- Kava (KAVA) PTC Sites
- Kava (KAVA) Airdrop
- Kava (KAVA) GameFi
- Kava (KAVA) Bounties
- Learning About Kava (KAVA)
- Shopping Reward
- Kava (KAVA) Interest
- Owning a Kava (KAVA) Faucet
- Write about Kava (KAVA)
- Kava (KAVA) Affiliate Program
- Free Kava (KAVA) Cloud Mining
What is a Kava (KAVA) Wallet?
1. Kava (KAVA) Wallets for Beginners
Kava network wallet is a free software protocol that allows users to loan assets using multiple cryptocurrencies, cutting off traditional financial institutions and other intermediaries. The above makes it a next-gen decentralized lending platform that aims to bring flexibility to the market. Kava is one of the most popular projects in the DeFi sector.
However, it should be noted that while most decentralized finance (DeFi) projects run on Ethereum, Kava wallet runs on Cosmos. Cosmos bolsters the lending protocol and entirely depends on customization and interoperability, adding more functionality to the protocol. Ethereum, on the other hand, has issues with scaling decentralized apps and protocols that are hosted when the network is crowded.
The exchange lending mechanism allows Cosmos to produce USDX (a stable coin equivalent to the value of the U.S. dollar). When supported crypto is deposited as collateral by a user, USDX is created. Other users can take loans in the form of USDX. Users that deposit funds to support the lending system are recompensed with KAVA crypto every week.
Kava also merges with other platforms and protocols using zones. Zones are app-specified blockchains hosted on Cosmos. Zones are also the means through which users add different tokens to the system for lending and borrowing.
2. How To Make A Kava (KAVA) Paper Wallet?
Although there are ways to manually generate a private key, the vast majority of paper wallet creators use a private key generator. Once a private and public key have been created, you are able to print a paper wallet, which because it’s not online doubles as a cold storage wallet. This will include the public and private key you’ve generated, usually as both a string of characters and QR codes.
Anyone with a paper wallet’s public key can send crypto to it as often as they like. Using the corresponding private key, you can move the crypto balance of the paper wallet into a software wallet. This transfers the funds to a new private key on your software wallet.
3. Ways To Set Up a Kava (KAVA) Wallet
There are many Kava (KAVA) wallets out there, and all of them differ in their characteristics. Mobile software wallets are great for day-to-day use, while desktop software wallets bring about a great balance between convenience and security. Lightweight web wallets are the best choice for quick online transactions. Cold encrypted hardware wallets like Ledger or Trezor are the best for long-term storage of bitcoin. However, unlike other options, hardware wallets aren’t free and cost $50 or more.
Set up a Kava (KAVA) Software Wallet
- Mycellium
- Bread (BRD) wallet
- Bitcoin wallet
- Electrum
- Samourai
Set up a Kava (KAVA) Web Wallet
- Coinbase
- Blockchain.info
- BTC.com
- Rahakott
- BitGo
Set up a Kava (KAVA) Hardware Wallet
- Ledger
- Trezor
- BitLox
- KeepKey
How to Buy and Sell Kava (KAVA) In Different Area?
1. How to Buy and Sell Kava (KAVA) in India?
You can get Kava (KAVA) in India mainly through buying and mining. To buy it, you can use several online exchanges such as WazirX, Coinbase, BuyUcoin, and CoinDCX. Choosing the best online exchange is another task, but here are a few things you should keep in mind while buying the cryptocurrency in India.
- It’s best to go with an exchange that allows you to withdraw cryptocurrency in INR to your personal online wallet for safekeeping
- Make sure that the internet connection is secure. Also, don’t forget to use safe internet practices like two-factor authentication and unique and strong passwords.
- KYC aka Know Your Customer verification is a must, at least in India. For that, you can use a PAN card and valid address proof
- Now, add the bank account that is linked to your PAN card. Verification will take around 2-3 days
After the verification is complete, you can start trading Kava (KAVA) in India. Money from your bank accounts can be transferred using NEFT, RTGS, and debit and credit cards. Currently, the value of one Bitcoin is around 27 lakh; however, you don’t have to buy a whole coin to begin investing. You can buy Bitcoin in parts, i.e. small investments for as low as Rs 500. That way, you will own a small percentage of the cryptocurrency.
2. How to Buy and Sell Kava (KAVA) in Canada?
- Sign up and get KYC (Know-Your-Customer) verified on a Canadian crypto exchange like Bitbuy.
- Deposit CAD to the exchange directly from your bank account.
- Buy Kava (KAVA).
- Store Kava (KAVA) on your exchange account or transfer it to a wallet.
3. How To Buy and Sell Kava (KAVA) In The UK?
- Create a Coinbase account.
- Complete identity verification to access fiat payment options.
- Navigate to the Accounts and select the GBP wallet.
- Fund your account using Bank Transfer or other methods.
- Once the deposit is complete, go to the Buy/Sell page and select GBP to Kava (KAVA).
4. How To Buy Kava (KAVA) in the United States?
The best way to buy and sell Kava (KAVA) in the USA is through an exchange such as Coinbase, Kraken, Gemini, Coinmama, Binance, or Changelly. There is a plethora of options available, so it is best to look at each of the exchanges’ processes for deposits and withdrawals, fees, and transaction speeds to determine which is best for you.
Kava (KAVA) FAQs
1. Kava (KAVA) History
Kava is a Layer-1 blockchain that combines the speed, interoperability and low transaction fees of Cosmos with the developer power of Ethereum. The Ethereum Co-Chain enables support for EVM smart contracts while the Cosmos Co-Chain enables the Tendermint consensus engine and the Inter Blockchain Communication Protocol (IBC). The Tendermint Proof-of-Stake (PoS) consensus mechanism offers Byzantine Fault Tolerance (BFT), instant finality, and security. The two co-chains are connected by a translator module that enables them to interoperate seamlessly, bringing the two most used blockchain development environments together into a single, scalable network. The Kava Network features a native governance and utility token, KAVA, that can be staked by validators or delegated to validator nodes.
Kava Labs is the primary contributing team to the Kava Network. The company’s mission is to establish the Kava Network as a top-five Layer-1 blockchain by empowering and incentivizing the developers that will help grow the Layer-1 ecosystem. Kava Labs was co-founded by Brian Kerr, Ruaridh O’Donnell, and Scott Stuart. The current CEO of Kava Labs is Scott Stuart, a former professional poker player and serial entrepreneur. Scott served as the Head of Product for Kava Labs from 2017 to 2021, when he took over as CEO from Brian Kerr. Brian Kerr previously worked as an advisor for several digital asset-focused companies, including Snowball and DMarket. Ruaridh O’Donnell is an MSc Physics graduate and former engineer and data analyst at Levelworks. Kava Labs has approximately 40 full-time employees distributed across North America, Asia, and Europe.
How does Kava attract developers? The Kava Network empowers developers with: Flexible Deployment: Developers can build and deploy on either of the two most used permissionless execution environments in the world using the EVM-compatible Ethereum Co-Chain or the Cosmos Co-Chain.
On-Chain Incentives: A transparent and decentralized on-chain incentive model ensures that the best developers and projects in every Web3 vertical (including DeFi, GameFi, and NFTs) are rewarded for their contributions with a proportional share of the value and governance of the network.
Seamless Interoperability: Developers can deploy Solidity smart contracts that interoperate seamlessly with Cosmos SDK protocols in the same network, connecting their project to every major asset and millions of users.
2. Can users deposit other Kava chain assets into EVM protocols?
At this stage, users will only be able to deposit KAVA to MetaMask. Below are some details on what will be available when the Ethereum Bridge is released later in 2022.
Cross-deposits between Ethereum and Kava.evm (USDC, WETH)
Cross-deposits between Kava.eth and Kava.cosmos (WETH, USDC, and any ERC-20 assets that deploy to Kava.evm)
KAVA will initially be the only native Kava asset that can be transferred to Kava.eth
Cosmos (IBC-compatible) assets will not initially be transferrable to Kava.evm
More details on cross-deposits for other native Kava assets (HARD, SWP, USDX) and Cosmos assets (IBC-compatible) will be announced later in Q4, 2022.
3. Can users deposit wrapped KAVA or Cosmos assets onto the Ethereum Network?
Users will initially only be able to wrap and send KAVA to the EVM. Other wrapped Cosmos IBC-enabled assets to the EVM will come later. In the beginning, Kava will support cross-deposits of KAVA between Kava.cosmos and Kava.evm.
When the Ethereum Bridge is released later in Q3, 2022, cross-deposits for other assets between Kava.cosmos, Kava.evm, and the Ethereum network will be enabled. Plans for direct transfers between Kava.cosmos and Ethereum are TBD.
Kava is constructing a Cosmos-EVM co-chain ecosystem, but what’s the difference and advantage compared to Evmos? Evmos is also an EVM-compatible chain built with the Cosmos SDK.
4. Is Kava a good investment?
When purchasing any cryptocurrency make sure to understand the unique risks associated with the token, as well as the volatile nature of the marketplace. In particular, buyers of KAVA may want to consider the following:
Use-case: KAVA tokens have three main use-cases. Token holders can participate in governance by voting on and putting forward development proposals. KAVA can be used as a ‘lender of last resort’, meaning they will be liquidated to guarantee USDX redemption. Additionally, KAVA tokens can be locked up and staked to secure the network, in exchange for rewards.
Cosmos blockchain: Kava’s staking platform is unique in that it is built on Cosmos (ATOM). Most similar projects utilise the Ethereum blockchain. Therefore, it’s a good idea to explore the Cosmos ecosystem, understand how it works and compare the platform to Ethereum and other smart contract blockchains.
Off-chain capabilities: In January 2022, Kava completed a network upgrade, moving to a newer version of the Cosmos protocol. This further enhanced Kava’s ability to interact with Inter-Blockchain (IBC) protocol chains and their supported assets. Additionally, this allows Kava users to easily move their assets like KAVA tokens on other networks, as well as unlocking new earning and staking methods on the platform.
5. The Team Behind KAVA
Brian Kerr, Ruaridh O’Donnell, and Scott Stuart co-founded Kava Labs, Inc., the parent company behind Kava. Brian Kerr is the platform’s current CEO. He has previously worked as an advisor for several blockchains and cryptocurrency projects, including Snowball and DMarket. Kerr, who holds a bachelor’s degree in business administration, has had a broad and successful career. Ruaridh O’Donnell, an MSc Physics graduate, and former engineer and data analyst at Levelworks, is described as Kava’s second co-founder. Scott Stuart, a former professional poker player, is the final Kava co-founder. Kava Labs currently employs him as a product manager.
