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Kava’s DeFi project was launched on the Cosmos blockchain

June 11, 2020

The decentralized financial protocol (DeFi) from Kava officially launched in the main Cosmos network (ATOM) with the first-time integration of Binance Coin (BNB) as security.

Kava works similarly to MakerDAO (MKR) It allows users to deposit crypto assets and lend Kava’s stablecoin USDX. The project focuses on Provide DeFi interoperability and promise guarantees from other chains including Bitcoin (BTC) and Ethereum (ETH).

The original form of security is BNB, which Provide the Binance token with a DeFi app. It is no secret that the exchange tried to insert her token into DeFi, previously associated with Equilibrium, based on EOS.

Kava’s DeFi project was launched on the Cosmos blockchainKava’s DeFi project was launched on the Cosmos blockchain

Kava was incubated by Binance Launchpad, who was probably considering the decision. Accept BNB only at start. Changpeng Zhao (CZ), CEO of Binance, stated that “Kava is developing another BNB application, This increases the added value for BNB holders. “

The start is accompanied by a promotional offer that rewards Kava’s creditors with the project token that can be used to participate in his government.

Interoperable, but not yet supported

The Kava project is the first of its kind to be launched in Cosmos. a project that emphasizes strongly Interoperability with other blockchains. The Cosmos SDK also fires the Binance chain. This considerably simplifies the integration of BNB in ​​Kava.

There are many projects on alternative smart contract platforms looking to emulate Ethereum DeFi in any way. For example, a version was released on Tron (TRX) in March that is very similar to the old manufacturer’s unique garment.

As already mentionedEOS has its own maker analog in equilibrium. The project follows a path similar to that of Kava with the Integration of Bitcoin guarantees, carried out a few days before a similar decision by the manufacturer.

However, One of the strengths of the DeFi ecosystem on Ethereum is the large number of projects You can interact with each other, a function called composing.

This can lead to interesting mechanics like the recent addition of Uniswap tokens to Aave, They can be used to strengthen old liquidity funds. Some features of Uniswap V2, like flash swaps, They were also designed with the composition in mind. Instant loans and composition can also be violated as evidenced by bZX hacks.

Although kava is interoperable in terms of cross-chain asset acceptance, There are no other projects it supports. Brian Kerr, CEO of Kava Cointelegraph said that Kava has the vision of becoming a “DeFi center”. in the model of the centers and zones of the cosmos.

He believes that architecture makes it easier for other Ethereum DeFi projects Connection and Augur enter the cosmos, Although he sees three different ways to do it.

You could use an Ethereum bridge for Cosmos “to maintain the existing network effect and nor you have to rewrite your base code. “ But he also mentioned that other projects could just migrate to Cosmos benefit from improved infrastructure.

After all, there could be another way through direct integration with Kava:

“Many intelligent contracts for Ethereum do not require their own security, but would benefit from being in the Cosmos ecosystem. I imagine that composite systems or the like are built directly in some of the largest centers in the Cosmos, such as Kava.”