Footprint Analytics: Is Kava, the star of the project, backlink?

In November, Kava announced the preview of the Kava 9 mainnet upgrade. Since then, Kava has announced community engagement campaigns including GameFi, cloud services and blockchain security partnerships, and green zones. have spread.

On December 16, Kava launched testnet support for Kava9. The price of TVL and KAVA has increased due to the history of the mainnet before the upgrade. Therefore, this improvement has also caught the attention of the crypto market.

Kava DeFi Improvement Route

In 2019, Kava was interested in making a loan with the 'Cosmos Ecostar' label.

The great thing about Kava is that it bridges the gap in cross border lending. Most DeFi apps, especially abandoned lenders, are only for the general public in the community. However, both the Kava contract and the HARD contract support the deposit and loan of connected equipment. Through this, traders can borrow chains from Kava ecosystem, borrow eco-friendly Kava assets, borrow equipment or borrow equipment, borrow eco-friendly equipment from Kava tam.

From 2021, Kava improves the ups and downs of the DeFi market, lending applications through the public DeFi Phase 1 channel and gradually improving green connectivity.

Today, Kava has grown into a distributed support hub across the entire DeFi application and service chain, committed to providing uninterrupted financial support to devices and developers.

Key development points

On June 11, 2020, key Kava 3 upgrades were completed and the first CDP loan facility was launched, allowing you to borrow USDX through BNB loans.

On October 15, 2020, Kava 4 Gateway mainnet upgrade was completed to support cross-platform HARD protocol operation.

Kava 5 mainnet launch on April 9, 2020

On the evening of August 30, 2021, the Kava DeFi platform completed the upgrade of the Kava 8 mainnet.

The Kava 9 mainnet upgrade is expected to go live in Q1 2022.

As the growth of TVL shows, with each modification the ecology of kava gradually improved, and over the iterations TVL also gradually increased, resulting in an increase in the value of the token. . However, the price of the token does not control the increase in tariffs like TVL. The current rate has dropped almost 60% since the last iteration cost increase.

As this is a flagship project, there is still not enough development compared to what happened after DeFi Summer.

What a slow growth of Kawa Let's take a closer look at Kava's green business and industrial token.

Ecological situation of kava

In general, as a public channel, Kava is in the early stages of development and has two obvious problems.

Weak ecology Now it is known that the ecological cooperation project has not yet landed, usually a project of the Kava family.

The token market is not stable enough.

In this article, Footprint Analytics will look at these two issues in more detail.

Ecology is unsuccessful and there is no liquidity. TVL is sponsored by the Kava "family".

Now, Kava generally has three jobs.

Kava Mint allows users to obtain USDX secured loans using their real estate.

Kava lending enables users to benefit from the provision and lending of assets in the currency market.

Kava Swap allows users to buy and sell tokens on the Kava Channel, providing water to the mining pool for rewards.

Our work covers all the role of coins, borrowing and trading, providing a comprehensive financial basis for the Kava ecosystem.

Three ecological studies in Footprint Analytics show that Kava Mint is currently the project with the highest TVL, accounting for over 50%.

However, with Kava Lending, the first commercial cross-platform, and Kava Swap, a contract through AMA, launched in August, TVL is still in the low position.

Currently, there are not many types of assets and profits that can be borrowed in the project, there is no ecological liquidity, and only turn to borrowing and trading in the Kava ecosystem. For example, Kava Swap offers very high APY rewards, but only the base USDX currency pair in its pool.

The risk of improper distribution and sale of platform tokens is greater.

The price of the Kava Eco Token this year has fluctuated. Let's focus on KAVA and USDX.

Data Source: Footprint Analysis - Kava Green Project Governance Token Price Trend

Plate-shaped token COFFEE

KAVA is a token used to manage the Kava blockchain, and KAVA also acts as the system endpoint. If the whole process does not have enough products, KAVA will be sent as a USDX ransom until the system returns to a sufficient amount.

Even more problematic is the distribution of KAVA tokens, where 40% of KAVA is private equity, where the risk of sale is greater, and the performance of the Kava group firm. The freeze rate is not transparent.

Some applications are stable

USDX is a stable currency in the Kava ecosystem, but as a currency pegged to the US dollar, the value of USDX is “volatile”. The main reason is that there are several application scenarios. Now used for contests. On loan from Kava. Following the announcement of the cross-chain Kava Swap AMM application, the value of USDX has stabilized and Kava plans to list on more exchanges to increase capacity and terms of use.

Can I uninstall Kava from this update?

The highlight of the upcoming Kava 9 is that the new Kava update announces the IBC blockchain communication protocol. This has two major implications for kava.

Given the IBC model, USDX could access Ethereum's DeFi project through IBC and become the payment room for exchanges under various circumstances. The kava token industry may be more stable.

This will allow all projects and communities supporting IBC to integrate their products into the Kava chain.

Kava 9 enhancements include the completion of infrastructure upgrades for the Ethereum cross-chain bridge, support for the Kava Launchpad and the Kava Wallet, all of which form the basis for the further development of the Kava ecosystem. . .

Kava brings together the intersection of two current DeFi hotspots: the Loan and Crossover channels. However, the role of the Kava family alone is not enough to support the development of the population chain.

The success of Kava's mission to create an ecosystem will depend on the success of the project that allows developers to work for Kava, making the ecosystem richer and more competitive in the public chain.