Kava EVM
What is Kava.io (KAVA)?
Without the assistance of financial institutions or other middlemen, users can borrow and lend a variety of cryptocurrencies using the DeFi lending platform Kava (KAVA). One of the top projects in the DeFi industry, Kava is decentralized. Kava is not a DeFi platform or equivalent software technology that is developed on top of the Ethereum network.
Instead, Cosmos serves as the foundational platform for Kava and enables the loan protocol. The development team chose Cosmos over Ethereum because of its difficulties scaling decentralized applications and hosted protocols during network congestion, while Ethereum relies on customisation and compatibility to add additional functionality to the Kava protocol.
Every time a user deposits a supported cryptocurrency as collateral, the Kava system uses Cosmos to create USDX, a stablecoin that is pegged to the value of the US dollar and allows other users to borrow money in the form of USDX. Every week, users that contribute bitcoin to the lending system are awarded with KAVA cryptocurrency for their efforts.
Users can add a wide variety of other tokens to the Kava protocol for lending and borrowing using application-specific blockchains hosted on Cosmos, known as "zones," which are how Kava interfaces with other platforms and protocols.
