What is KAVA?
Kava is based on Cosmos and uses a Proof-of-Stake (PoS) consensus method based on Tendermint. By offering stablecoins and decentralised financing against all significant cryptocurrencies, Kava hopes to become the default DeFi platform. Kava is based on a concept similar to MakerDAO's CDPs, but it uses Cosmos' zones to add cryptocurrencies running on independent networks like XRP. KAVA and USDX (Kava's stablecoin) are the two significant tokens used by Kava. Aside from its stablecoin USDX, Kava has a governance token, KAVA, which is staked in-network validator bonding curves. It's also utilised when Kava is acting as a last-resort lender. There are three main use-cases for the platform: 1) By securing collateral through a smart contract, users can withdraw USDX, Kava's stablecoin. 2) Users can take positions on USDX for a profit. 3) Users can construct synthetic leverage for any supported crypto assets by taking out a series of collateralised loans. It is conceivable, for example, to lock XRP and mint USDX to acquire XRP, resulting in a leveraged long position on XRP.