On Jun 10, 2020, Kava’s decentralized finance (DeFi) lending platform is set to roll out on Binance exchange, making DeFi services available to BNB holders. The forthcoming platform will feature connectivity with Binance Chain, allowing BNB users to use their tokens as collateral to mint USDX Stablecoin loans.
By accepting BNB as collateral on its lending platform, Kava is creating another use case for BNB, which brings additional value for BNB users while allowing them easy access to DeFi products. Kava is also offering an unparalleled opportunity to earn by staking BNB on the platform’s DeFi lending platform as a way of accelerating user growth on the platform.
Currently, at a time when the crypto markets are witnessing increased volatility, interest in digital assets has also been on the rise. Hence, on that note, it seems Kava Labs plan to bridge the crypto economy with traditional collateralization practices, bringing together the best of both old and new financial services.
The Pioneering DeFi platform on Binance Launchpad
This development comes just months after Kava Labs’s native token (KAVA) launched on Binance Launchpad via the airdrop format on Sep 23, 2019.
As a sign of an emerging dominant Defi platform, Kava’s Cybertruck giveaway put them on the frontline of binance.com plans. That’s why it’s no doubt that the platform is highly acclaimed by the Binance CEO Changpeng (CZ) Zhao, who publicly appraised Kava on twitter. The Co-Founder of Kava Labs Brian Kerr was grateful about the announcement by saying:
“It means a lot to get endorsed by CZ and Binance as the first DeFi platform on Launchpad.”
A total of 326,087 KAVA tokens (approx. $150K) were airdropped, with the public sale token price at $0.46. With a total cap of 100M, this was a huge success for Kava Labs in its Binance launch as a flurry of users rushed to acquire the tokens.
Now, with the imminent Defi platform launch, a total of 3,848,000 KAVA from Kava’s “User Growth Fund” will be given directly to BNB holders who had participated by staking BNB and minting USDX. More, for the next 52 weeks after the Jun 10 launch, USDX minters will earn 74K KAVA distributed proportionately to the amount of USDX minted by BNB holders.
Kava Labs on the Front Seat in Promoting DeFi Apps
Kava Labs seems set to revolutionize the DeFi space, as evinced with the Jun 6, 2020 announcement about the platform’s collaboration with IRISnet. The partnership was intended to support further and promote DeFi application development on each other’s respective blockchain.
Kava Labs’ initial DeFi project that grabbed the attention of the crypto community was the Switch app, which enables users to swap cryptocurrencies quickly and securely, across numerous blockchains.