Difference between revisions of "Kava (KAVA)"

From CryptoWiki

wiki_crypto>Zeb.dyor
 
(7 intermediate revisions by 2 users not shown)
Line 2: Line 2:
* Started in:
* Started in:
* Based in:
* Based in:
* A cross-blockchain [[DeFi]] platform built on [[Cosmos (ATOM)|Cosmos]], enabling leverage and hedging using a multi-collateral CDP system and collateral-backed [[Stablecoins|stablecoin]] (USDX).
* A cross-blockchain [[DeFi]] platform built on [[Cosmos (ATOM)|Cosmos]], enabling leverage and hedging using a multi-collateral CDP system and collateral-backed [[Stablecoins|stablecoin]] ([[USDX]]).
* Kava is [https://medium.com/kava-labs/defi-coming-to-cosmos-808034b733be live] on a Cosmos Zone [[testnet]]. Kava allows to turn any asset supported by Cosmos, particularly those from chains that don't support [[Smart Contract|smart contracts]], into potential collateral to be used for decentralized leverage/hedging purposes (by minting a stablecoin ''a la'' [[DAI]]). It's interesting as thanks to interoperability it effectively can support multi-collateral right out of the gate, starting with [[XRP]]. Now whether XRP holders would actually be interested in something like this is a different question... (Ripple backs Kava however, so that is probably why).
* Kava is [https://medium.com/kava-labs/defi-coming-to-cosmos-808034b733be live] on a [[Cosmos]] Zone [[testnet]]. Kava allows to turn any asset supported by Cosmos, particularly those from chains that don't support [[Smart Contract|smart contracts]], into potential collateral to be used for [[decentralized]] leverage/hedging purposes (by minting a stablecoin ''a la'' [[DAI]]). It's interesting as thanks to interoperability it effectively can support multi-collateral right out of the gate, starting with [[XRP]]. Now whether XRP holders would actually be interested in something like this is a different question... (Ripple backs Kava however, so that is probably why).
* Kava 9 [[mainnet]] went [https://twitter.com/kava_platform/status/1483877059461976064?s=21 live] (20-1-2022).
* Kava 9 [[mainnet]] went [https://twitter.com/kava_platform/status/1483877059461976064?s=21 live] (20-1-2022).
* From the [[Chorus One]] (which provides staking on Kava) [https://chorus.one/networks/kava/ website] (1-3-2020):
* From the [[Chorus One]] (which provides staking on Kava) [https://chorus.one/networks/kava/ website] (1-3-2020):
''"Kava is bringing collateralized debt positions (CDPs) to the Cosmos interchain ecosystem. With the Kava platform users are able to borrow a USD-pegged stablecoin (USDX) against their crypto collateral. Kava CDP functionality will support [[ATOM]], [[BTC]], [[BNB]] and [[XRP]] when it launches in Q1 2020."''
''"Kava is bringing collateralized debt positions (CDPs) to the Cosmos [[interchain]] ecosystem. With the Kava platform users are able to borrow a USD-pegged [[stablecoin]] ([[USDx|USDX]]) against their crypto collateral. Kava CDP functionality will support [[ATOM]], [[BTC]], [[BNB]] and [[XRP]] when it launches in Q1 2020."''
== History ==
== History ==
== Audits & Exploits ==
== Audits & Exploits ==


*[[Bug bounty]] program can be found [insert here].
*Got a [https://twitter.com/DefiSafety/status/1603144501442273280 review] from [[DeFi Safety]] (15-12-2022):
''"As a [[Cosmos (ATOM)|Cosmos]] chain, Kava has a max [[validator]] count of 100. This is very standard from the Cosmos chain and considering the ecosystem, is an okay number. becoming a validator on Kava is very accessible, with hardware requirements being industry standard. The only [[staking]] minimum requirement is the last validator’s delegated tokens. Kava has 2 [[node]] implementations, a [[mainnet]] implementation and a [[Go]] implementation.''
 
''One thing we’d love to see more from the Kava devs is node software documentation. Only an overview of the co-chain infrastructure is shown, which leaves lots of room for further explanations on the details of the node implementation information. Kava uses implicit traceability between the [[Github|GitHub]] <nowiki>http://README.md</nowiki> files and the source code. With complete function documentation, we have nothing bad to saw on this section of Kava’s docs.  Due to being unable to reach out to developers, we were unsuccessful in finding the code’s testing situation. Kava’s code coverage is public, but outdated. A quick search on the <nowiki>http://Codecov.io</nowiki> website show code coverage from tests dating from 2019, and the repositories covered by that coverage are now deactivated.''
 
''Additionally, testing reports and [[Bug bounty|bug bounties]] were not found, upon which we cannot award any points for. Kava, however, has undergone one audit from August 2021 by CertiK! Most findings were resolved, minor issues acknowledged, which gives decent points."''
*Kava Swap [https://medium.com/kava-labs/kava-swap-completes-certik-audit-dd1c1d47e9c5 completed] a [[CertiK (CTK)|CertiK]] audit (28-8-2021).  
*Kava Swap [https://medium.com/kava-labs/kava-swap-completes-certik-audit-dd1c1d47e9c5 completed] a [[CertiK (CTK)|CertiK]] audit (28-8-2021).  


=== Bugs/Exploits ===
=== Bugs/Exploits ===


* Not long after their upgrade to Kava 5 it ran into issues. From Figment Weekly Digest (11-3-2021):
* Kava Labs patched a [https://github.com/Kava-Labs/kava/blob/master/x/cdp/spec/03_messages.md#liquidate bug] that could allow unexpected liquidations (3-2023).
* On May 11, 2022 Kava lost half of its value after its hardcoded [[Terra (LUNA)|UST]] price was used to [https://twitter.com/DeFi_Made_Here/status/1525448577341956096 generate lost of bad debt].
*Not long after their upgrade to Kava 5 it ran into issues. From [[Figment]] Weekly Digest (11-3-2021):


''"Kava halted their chain, Kava 5, on March 5th, when they discovered a rewards distribution bug. The issue originated from a last-minute change to the accounting logic for HARD protocol liquidations. This change led to inaccurate reward calculations for HARD Protocol liquidity provision rewards. The team discounted the [[blocks]], and [http://e.figment.io/e/c/eyJlbWFpbF9pZCI6ImRnT1hsQWFYbEFZREFBRjRIWUtaYVhKaDhzM0lER3NOaFVzPSIsImhyZWYiOiJodHRwczovL21lZGl1bS5jb20va2F2YS1sYWJzL2thdmEtNS1sYXVuY2gtcG9zdC1tb3J0ZW0tZTgxYTRhZTAxNjY2IiwibGlua19pZCI6NDYyLCJwb3NpdGlvbiI6NH0/84b059d8e2b421f67e9aa1a restarted] the old chain under Kava 6. They have since released plans to restart the Kava 5 upgrade as Kava 5.1"''
''"Kava halted their chain, Kava 5, on March 5th, when they discovered a rewards distribution bug. The issue originated from a last-minute change to the accounting logic for HARD protocol liquidations. This change led to inaccurate reward calculations for HARD Protocol [[liquidity]] provision rewards. The team discounted the [[blocks]], and [http://e.figment.io/e/c/eyJlbWFpbF9pZCI6ImRnT1hsQWFYbEFZREFBRjRIWUtaYVhKaDhzM0lER3NOaFVzPSIsImhyZWYiOiJodHRwczovL21lZGl1bS5jb20va2F2YS1sYWJzL2thdmEtNS1sYXVuY2gtcG9zdC1tb3J0ZW0tZTgxYTRhZTAxNjY2IiwibGlua19pZCI6NDYyLCJwb3NpdGlvbiI6NH0/84b059d8e2b421f67e9aa1a restarted] the old chain under Kava 6. They have since released plans to restart the Kava 5 upgrade as Kava 5.1"''


* The bug led the Kava Safety Committee to halt and roll back the network (4-3-2021). The network had been offline for 15 hours according to [[Messari]] (31-3-2021).
* The bug led the Kava Safety Committee to halt and [[roll]] back the network (4-3-2021). The network had been offline for 15 hours according to [[Messari]] (31-3-2021).


== Governance ==
== Governance ==
Line 33: Line 40:
=== Treasury ===
=== Treasury ===


* Has a [https://www.mintscan.io/kava/txs 10M] community pool (15-10-2021).
* The Kava DAO voted to [https://twitter.com/MadNews_io/status/1499553675148201985 allocate $750M] to [[on-chain]] developer incentives (4-3-2022).
*Has a [https://www.mintscan.io/kava/txs 10M] community pool (15-10-2021).
* [https://medium.com/kava-labs/kava-launches-185m-phase-1-ecosystem-fund-9330648d3ec1 Started] a "$185M Ignition Fund" to onboard [[Decentralized Finance (DeFi)|DeFi]] projects (22-9-2021).
* [https://medium.com/kava-labs/kava-launches-185m-phase-1-ecosystem-fund-9330648d3ec1 Started] a "$185M Ignition Fund" to onboard [[Decentralized Finance (DeFi)|DeFi]] projects (22-9-2021).


Line 46: Line 54:
===Stablecoin===
===Stablecoin===


* USDX
* [[USDx|USDX]]


== Coin Distribution ==
== Coin Distribution ==
* [https://decrypt.co/26406/framework-investment-kava-defi From] [[Decrypt]] (22-4-2020):
* [https://decrypt.co/26406/framework-investment-kava-defi From] [[Decrypt]] (22-4-2020):
"''[[Framework Ventures]] invested $750,000 in Kava network [which translates to 4% of the tokensupply]. Framework took no equity. Instead, it will exert its influence by [[staking]] tokens."''
"''[[Framework Ventures]] invested $750,000 in Kava network [which translates to 4% of the tokensupply]. [[Framework]] took no equity. Instead, it will exert its influence by [[staking]] [[tokens]]."''


* [[Kraken]] holds 16% of all voting power, with [[Binance]] Staking holding 12%. According to the BigDipper block explorer, 3 validators together have 28% of the voting power, and 20% of the validators holds 88% (15-10-2021).  
* [[Kraken]] holds 16% of all voting power, with [[Binance]] Staking holding 12%. According to the BigDipper [[block]] [[explorer]], 3 [[validators]] together have 28% of the voting power, and 20% of the validators holds 88% (15-10-2021).  


== Tech ==
== Tech ==
Line 70: Line 78:
*From this [https://medium.com/stakin/dapps-and-blockchains-built-on-the-cosmos-ecosystem-31731494570b article] (28-5-2020):
*From this [https://medium.com/stakin/dapps-and-blockchains-built-on-the-cosmos-ecosystem-31731494570b article] (28-5-2020):


''"[https://medium.com/stakin/kava-labs-quick-guide-overview-4c9d2f07b12?source=friends_link&sk=ad0f230f1511b38f8e592cca80363113 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.''
''"[https://medium.com/stakin/kava-labs-quick-guide-overview-4c9d2f07b12?source=friends_link&sk=ad0f230f1511b38f8e592cca80363113 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.''
''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 (LINK)|Chainlink]] [[Oracle|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."''
''The latest KAVA project is in collaboration with [[Chainlink (LINK)|Chainlink]] [[Oracle|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."''


Is built around [https://www.kava.io/ three core products], Mint, Lend and Swap (15-10-2021).
Is built around [https://www.kava.io/ three core products], Mint, [[LEND|Lend]] and Swap (15-10-2021).
=== Fees ===
=== Fees ===
=== Upgrades ===
=== Upgrades ===
Line 84: Line 92:
*[https://www.coindesk.com/kava-labs-launches-protocol-upgrade-with-eye-on-institutional-defi-lending From] [[CoinDesk]] (9-4-2021):
*[https://www.coindesk.com/kava-labs-launches-protocol-upgrade-with-eye-on-institutional-defi-lending From] [[CoinDesk]] (9-4-2021):


''“This [Kava 5] upgrade will finalize the transition of Kava as a single application [[blockchain]] to an industry-leading DeFi platform complete with interoperable [[cross-chain]] tooling, secure price feeds and enterprise-grade reliability that financial institutions can trust,” Kava Labs CEO Brian Kerr told CoinDesk. Additionally, Kerr told CoinDesk the upgrade will also complete the Hard protocol, the first cross-chain money market built on Kava’s platform that offers lending, borrowing and yield on cryptocurrencies such as [[bitcoin]], [[XRP]] and [[BNB]].''
''“This [Kava 5] upgrade will finalize the transition of Kava as a single application [[blockchain]] to an industry-leading DeFi platform complete with interoperable [[cross-chain]] tooling, secure price feeds and enterprise-grade reliability that financial institutions can trust,” Kava Labs CEO Brian Kerr told [[Coindesk|CoinDesk]]. Additionally, Kerr told CoinDesk the upgrade will also complete the Hard protocol, the first cross-chain money market built on Kava’s platform that offers lending, borrowing and yield on cryptocurrencies such as [[bitcoin]], [[XRP]] and [[BNB]].''


''The upgrade is aimed squarely at institutional investors and corporate treasuries, according to documents shared with CoinDesk, touting the ability for firms to get 25% APY on their bitcoin without [[Counterparty Risk|counterparty risk]]. While the risk of traditional players not fulfilling their lending obligations is obviated, it should be noted that [[Smart Contract|smart-contract]] risk and other factors certainly remain in play."''
''The upgrade is aimed squarely at institutional investors and corporate treasuries, according to documents shared with CoinDesk, touting the ability for firms to get 25% APY on their bitcoin without [[Counterparty Risk|counterparty risk]]. While the risk of traditional players not fulfilling their lending obligations is obviated, it should be noted that [[Smart Contract|smart-contract]] risk and other factors certainly remain in play."''
*[https://twitter.com/LucianMincu/status/1351972915001122822?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1351972915001122822%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcdn.embedly.com%2Fwidgets%2Fmedia.html%3Ftype%3Dtext2Fhtmlkey%3Da19fcc184b971 From] their [[twitter]] (21-1-2021):
*[https://twitter.com/LucianMincu/status/1351972915001122822?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1351972915001122822%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcdn.embedly.com%2Fwidgets%2Fmedia.html%3Ftype%3Dtext2Fhtmlkey%3Da19fcc184b971 From] their [[twitter]] (21-1-2021):


''"The most significant & complex Elrond [[mainnet]] upgrade has been released. The tools for embedding native money into the internet are here. [[Smart Contract]] deployment, Meta-Transactions, a new Arwen [[Web Assembly (WASM)|WASM]] [[Virtual Machine (VM)|VM]] & several other features have been deployed."''
''"The most significant & complex Elrond [[mainnet]] upgrade has been released. The tools for embedding native money into the internet are here. [[Smart Contract]] deployment, [[META|Meta]]-[[Transactions]], a new Arwen [[Web Assembly (WASM)|WASM]] [[Virtual Machine (VM)|VM]] & several other features have been deployed."''
=== Staking ===
=== Staking ===


Line 99: Line 107:
=== Scaling ===
=== Scaling ===
=== Different Implementations ===
=== Different Implementations ===
* From a [https://twitter.com/DefiSafety/status/1603144501442273280 review] from [[DeFi Safety]] (15-12-2022):
''"Kava has 2 [[node]] implementations, a [[mainnet]] implementation and a [[Go]] implementation."''
=== Interoperability ===
=== Interoperability ===


* From [[Figment Networks|Figment]] (4-2022):
''"Kava recently [http://e.figment.io/e/c/eyJlbWFpbF9pZCI6IlJKZVVCZ01BQVhfaW92VEFWcVBHV2NXY052OHhpdz09IiwiaHJlZiI6Imh0dHA6Ly9lLmZpZ21lbnQuaW8vZS9jL2V5SmxiV0ZwYkY5cFpDSTZJbEpLWlZWQ1owMUJRVmd0VkRSM2EwVjJSMlZKTUUxa2JuZGZUVEJNUVQwOUlpd2lhSEpsWmlJNkltaDBkSEJ6T2k4dmRIZHBkSFJsY2k1amIyMHZRMjl1Ym1WNGRFNWxkSGR2Y21zdmMzUmhkSFZ6THpFMU1ETTFPREl3TnpReE1qUTBOVEU0TkRVX2N6MHlNRngxTURBeU5uUTllRGR2UmtSd05HWnhTM05PTlRaTk5rMUNYMHg2VVNJc0ltbHVkR1Z5Ym1Gc0lqb2lPVGM1TkRBMk1EQTVOakJrT1Rjd1pDSXNJbXhwYm10ZmFXUWlPalEyTXpGOS80ZGUxZGEwYTNhYzMxMTE2ZDUwNzQ0YjgyZGRlMTE5ZGViOGVmYWIyMzQyMWZlY2UzNDc4MDNiNDRjNjM4NTQ3IiwiaW50ZXJuYWwiOiI5Nzk0MDYwMGNhMDljYjA5IiwibGlua19pZCI6NDY3OX0/78d894945fe0c5ca2811fcb6ce2722ebaf35d132932baf45198d3a92e2f62431 announced] an integration with [[Connext]] Network. This integration will bring $37M+ in cross-chain liquidity to Kava with their [[trustless]] [[bridge]], with deployment onto the Kava [[Ethereum (ETH)|Ethereum]] Co-Chain coming in the future."''
*[https://cryptobriefing.com/acala-network-polkadots-makerdao-comes-ethereum/ From] [[Crypto Briefing]] (11-9-2020):
*[https://cryptobriefing.com/acala-network-polkadots-makerdao-comes-ethereum/ From] [[Crypto Briefing]] (11-9-2020):


''"Rather than tapping into [[Ethereum]], Kava has avoided the leading [[smart contract]] platform thus far. Instead, Kava is [https://cryptobriefing.com/growth-band-protocol-kava-proves-demand-cross-chain-defi/ integrating] assets like [[BTC]], [[BNB]], and [[XRP]]. These are assets whose holders may desire non-custodial loans but have no way to access such a service."''
''"Rather than tapping into [[Ethereum]], Kava has avoided the leading [[smart contract]] platform thus far. Instead, Kava is [https://cryptobriefing.com/growth-band-protocol-kava-proves-demand-cross-chain-defi/ integrating] assets like [[BTC]], [[BNB]], and [[XRP]]. These are assets whose holders may desire non-[[custodial]] loans but have no way to access such a service."''


=== Other Details ===
=== Other Details ===
Line 135: Line 151:


#''"Generous support for [[cross-chain]] assets.''
#''"Generous support for [[cross-chain]] assets.''
#''Provides a yield earning option where USDX [[stablecoins]] are minted and contributed to a Hard protocol.''
#''Provides a yield earning [[option]] where USDX [[stablecoins]] are minted and contributed to a Hard protocol.''
#''Provides [[Masternode|Masternodes]] and [[staking]] opportunities and offers excellent rewards for top 100 validators.''
#''Provides [[Masternode|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."''
#''Autonomous system for [[burning]] coins to regulate supply thus increase demand and leave the currency deflationary."''
Line 142: Line 158:


* Has a Kava Safety Committee which can roll back the chain. This creates questions around it's [[decentralization]].
* Has a Kava Safety Committee which can roll back the chain. This creates questions around it's [[decentralization]].
*Kava voting power is [https://kava.bigdipper.live/voting-power-distribution highly concentrated] among the top validators (15-10-2021). See coin distribution above for more info.
*Kava voting power is [https://kava.bigdipper.live/voting-power-distribution highly concentrated] among the top validators (15-10-2021). See [[COIN|coin]] distribution above for more info.
*Has [https://kava.bigdipper.live/voting-power-distribution 20% yearly inflation].
*Has [https://kava.bigdipper.live/voting-power-distribution 20% yearly inflation].


Line 152: Line 168:
* [[Brian Kerr]]; CEO
* [[Brian Kerr]]; CEO
* [[Ripple]] [https://twitter.com/BandProtocol/status/1242058519659991041?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1242058519659991041&ref_url=https%3A%2F%2Fcoinspice.io%2Fcryptodevdigest%2Fcrypto-dev-digest-bitcoin-cash-node-fundraiser-ripple-defi-band-kraken-cracks-coolwallet%2F backed] (23-3-2020).
* [[Ripple]] [https://twitter.com/BandProtocol/status/1242058519659991041?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1242058519659991041&ref_url=https%3A%2F%2Fcoinspice.io%2Fcryptodevdigest%2Fcrypto-dev-digest-bitcoin-cash-node-fundraiser-ripple-defi-band-kraken-cracks-coolwallet%2F backed] (23-3-2020).
* Is [https://twitter.com/christroutner/status/1199011421792567296?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1199011421792567296&ref_url=https%3A%2F%2Fcoinspice.io%2Fcryptodevdigest%2Fcrypto-dev-digest-bitcoin-cash-node-fundraiser-ripple-defi-band-kraken-cracks-coolwallet%2F integrating] [[Band Protocol (BAND)|Band]] in their cross-chain defi.
* Is [https://twitter.com/christroutner/status/1199011421792567296?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1199011421792567296&ref_url=https%3A%2F%2Fcoinspice.io%2Fcryptodevdigest%2Fcrypto-dev-digest-bitcoin-cash-node-fundraiser-ripple-defi-band-kraken-cracks-coolwallet%2F integrating] [[Band Protocol (BAND)|Band]] in their cross-chain [[defi]].
*[[Fedrico Kullmer]]; ex-member, Fedrico joined [[Ignite (Company)|Tendermint]] as an Intern in 2018. He later was promoted to software developer. He left Tendermint in 2020. He later worked at [[Kava (KAVA)|Kava]] Labs, [[ChainSafe Systems|Chainsafe]] and Interchain Foundation.


=== Funding ===
=== Funding ===
Line 170: Line 187:
Making these free wiki pages is fun but takes a lot of effort and time.
Making these free wiki pages is fun but takes a lot of effort and time.


If you have enjoyed reading, tips are appreciated :) This will help us to keep expanding this archive of information.
If you have enjoyed reading, tips are appreciated :) This will help us to [[keep]] expanding this archive of information.


[[ETH]] tip [[address]]: 0x83460bE5F218b1520B69D702cE60A1DE37dD8E31
[[ETH]] tip [[address]]: 0x83460bE5F218b1520B69D702cE60A1DE37dD8E31
[[Category:Companies/Organisations]]
[[Category:Companies/Organisations]]

Latest revision as of 03:47, 27 March 2023

Basics

  • Started in:
  • Based in:
  • A cross-blockchain DeFi platform built on Cosmos, enabling leverage and hedging using a multi-collateral CDP system and collateral-backed stablecoin (USDX).
  • Kava is live on a Cosmos Zone testnet. Kava allows to turn any asset supported by Cosmos, particularly those from chains that don't support smart contracts, into potential collateral to be used for decentralized leverage/hedging purposes (by minting a stablecoin a la DAI). It's interesting as thanks to interoperability it effectively can support multi-collateral right out of the gate, starting with XRP. Now whether XRP holders would actually be interested in something like this is a different question... (Ripple backs Kava however, so that is probably why).
  • Kava 9 mainnet went live (20-1-2022).
  • From the Chorus One (which provides staking on Kava) website (1-3-2020):

"Kava is bringing collateralized debt positions (CDPs) to the Cosmos interchain ecosystem. With the Kava platform users are able to borrow a USD-pegged stablecoin (USDX) against their crypto collateral. Kava CDP functionality will support ATOM, BTC, BNB and XRP when it launches in Q1 2020."

History

Audits & Exploits

"As a Cosmos chain, Kava has a max validator count of 100. This is very standard from the Cosmos chain and considering the ecosystem, is an okay number. becoming a validator on Kava is very accessible, with hardware requirements being industry standard. The only staking minimum requirement is the last validator’s delegated tokens. Kava has 2 node implementations, a mainnet implementation and a Go implementation.

One thing we’d love to see more from the Kava devs is node software documentation. Only an overview of the co-chain infrastructure is shown, which leaves lots of room for further explanations on the details of the node implementation information. Kava uses implicit traceability between the GitHub http://README.md files and the source code. With complete function documentation, we have nothing bad to saw on this section of Kava’s docs. Due to being unable to reach out to developers, we were unsuccessful in finding the code’s testing situation. Kava’s code coverage is public, but outdated. A quick search on the http://Codecov.io website show code coverage from tests dating from 2019, and the repositories covered by that coverage are now deactivated.

Additionally, testing reports and bug bounties were not found, upon which we cannot award any points for. Kava, however, has undergone one audit from August 2021 by CertiK! Most findings were resolved, minor issues acknowledged, which gives decent points."

Bugs/Exploits

  • Kava Labs patched a bug that could allow unexpected liquidations (3-2023).
  • On May 11, 2022 Kava lost half of its value after its hardcoded UST price was used to generate lost of bad debt.
  • Not long after their upgrade to Kava 5 it ran into issues. From Figment Weekly Digest (11-3-2021):

"Kava halted their chain, Kava 5, on March 5th, when they discovered a rewards distribution bug. The issue originated from a last-minute change to the accounting logic for HARD protocol liquidations. This change led to inaccurate reward calculations for HARD Protocol liquidity provision rewards. The team discounted the blocks, and restarted the old chain under Kava 6. They have since released plans to restart the Kava 5 upgrade as Kava 5.1"

  • The bug led the Kava Safety Committee to halt and roll back the network (4-3-2021). The network had been offline for 15 hours according to Messari (31-3-2021).

Governance

Admin Keys

  • Has a Kava Safety Committee which can roll back the chain. This creates questions around it's decentralization.

DAO

  • Has had 65 proposals, out of which only 8 got rejected (15-10-2021).

Treasury

  • The Kava DAO voted to allocate $750M to on-chain developer incentives (4-3-2022).
  • Has a 10M community pool (15-10-2021).
  • Started a "$185M Ignition Fund" to onboard DeFi projects (22-9-2021).

Token

Launch

Token Distribution

  • Has 20% inflation (15-10-2021).

Utility

Other Details

Stablecoin

Coin Distribution

"Framework Ventures invested $750,000 in Kava network [which translates to 4% of the tokensupply]. Framework took no equity. Instead, it will exert its influence by staking tokens."

  • Kraken holds 16% of all voting power, with Binance Staking holding 12%. According to the BigDipper block explorer, 3 validators together have 28% of the voting power, and 20% of the validators holds 88% (15-10-2021).

Tech

Transaction Details

How it works

"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."

Is built around three core products, Mint, Lend and Swap (15-10-2021).

Fees

Upgrades

“This [Kava 5] upgrade will finalize the transition of Kava as a single application blockchain to an industry-leading DeFi platform complete with interoperable cross-chain tooling, secure price feeds and enterprise-grade reliability that financial institutions can trust,” Kava Labs CEO Brian Kerr told CoinDesk. Additionally, Kerr told CoinDesk the upgrade will also complete the Hard protocol, the first cross-chain money market built on Kava’s platform that offers lending, borrowing and yield on cryptocurrencies such as bitcoin, XRP and BNB.

The upgrade is aimed squarely at institutional investors and corporate treasuries, according to documents shared with CoinDesk, touting the ability for firms to get 25% APY on their bitcoin without counterparty risk. While the risk of traditional players not fulfilling their lending obligations is obviated, it should be noted that smart-contract risk and other factors certainly remain in play."

"The most significant & complex Elrond mainnet upgrade has been released. The tools for embedding native money into the internet are here. Smart Contract deployment, Meta-Transactions, a new Arwen WASM VM & several other features have been deployed."

Staking

Validator Stats

Liquidity Mining

Scaling

Different Implementations

"Kava has 2 node implementations, a mainnet implementation and a Go implementation."

Interoperability

"Kava recently announced an integration with Connext Network. This integration will bring $37M+ in cross-chain liquidity to Kava with their trustless bridge, with deployment onto the Kava Ethereum Co-Chain coming in the future."

"Rather than tapping into Ethereum, Kava has avoided the leading smart contract platform thus far. Instead, Kava is integrating assets like BTC, BNB, and XRP. These are assets whose holders may desire non-custodial loans but have no way to access such a service."

Other Details 

Oracle Method

Privacy Method

Their Other Projects

Roadmap

  • Can be found here (9-1-2021).

Usage

  • From their blog (22-9-2021):

"With three protocols, $2.1 billion in assets on-chain, over 280k users, and $1.8 billion in cross-chain transactions and counting."

Projects that use or built on it

Pros and Cons

Pros

  • From Hackernoon (16-1-2021):
  1. "Generous support for cross-chain assets.
  2. Provides a yield earning option where USDX stablecoins are minted and contributed to a Hard protocol.
  3. Provides Masternodes and staking opportunities and offers excellent rewards for top 100 validators.
  4. Autonomous system for burning coins to regulate supply thus increase demand and leave the currency deflationary."

Cons

Competition

Team, investors, Partners

Team

Funding

  • Started a "$185M Ignition Fund" to onboard DeFi projects (22-9-2021).

Partners 

"The cooperation will bring Kava’s collateralized loans, USDX stablecoins, HARD Protocol and other highly attractive yield opportunities to Reef users."

(:

Knowledge empowers all and will help us get closer to the decentralized world we all want to live in!

Making these free wiki pages is fun but takes a lot of effort and time.

If you have enjoyed reading, tips are appreciated :) This will help us to keep expanding this archive of information.

ETH tip address: 0x83460bE5F218b1520B69D702cE60A1DE37dD8E31