Kava is a multi-purpose decentralized platform built to serve crypto traders with a suite of products. It runs on the Cosmos blockchain. Users can open multi-collateral debt positions and also self-issue loans. This enables people to borrow and lend digital assets quickly without relying on traditional financial institutions. As part of its ecosystem, Kava also features its own stablecoin, USDX, which is pegged 1:1 to the U.S. dollar.

KAVA is the platform’s native cryptocurrency. Its total supply is 253,378,733.

What are Kava’s key features and how does it work?

The system supports lending and borrowing by letting users deposit, or lock, crypto in Cosmos smart contracts. These contracts are known as CDPs (collateralized debt positions). After depositing the digital asset, users receive USDX. Users can also earn rewards paid out in KAVA for minting USDX. When a USDX debt is fully repaid, the CDP is closed and the USDX is burned.

How much USDX someone can obtain is determined by the collateralization ratio. This figure is typically set relatively high to help guard against market volatility. The same ratio is used to calculate the liquidation price-if the value of the crypto locked in a CDP drops too far, the position can be liquidated and the USDX burned. This structure is designed to add protection during volatile market conditions. 

What can KAVA be used for?

The KAVA token is important to how the platform functions. Specifically, it is used for network governance as well as staking and validation. KAVA holders can vote on proposals covering blockchain changes, including which collateral is accepted, how much USDX may be issued, and other upgrades and parameter adjustments.

KAVA is also used to help keep the network secure. Token holders can delegate their KAVA to validators that run the blockchain, earning a share of rewards in return.

Where can you buy KAVA?

KAVA can be traded on the CEXs and DEXs listed here. The most widely used venues with the greatest liquidity are Binance, MEXC Global, AscendEX, Gate.io, and KuCoin. KAVA’s price will shift based on the exchange selected and broader market conditions. For current and historical KAVA market pricing, check the price charts on this page.