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Ano ang Kava? (KAVA)

Ang Beginner’s Guide


Kava is a software protocol that uses multiple cryptocurrencies to allow its users to borrow and lend assets without the need for a traditional financial intermediary. 

In this way, Kava is considered one of a number of emerging decentralized finance (DeFi) projects. However, whereas most DeFi projects run on Ethereum, Kava is instead built on Cosmos, a design decision its team argues adds additional functionality. 

Users of its platform lock cryptocurrencies into smart contracts on Cosmos so that they can borrow loans denominated in USDX, a cryptocurrency pegged to the value of the U.S. dollar. 

Kava leverages a feature in Cosmos called zones to manage the crypto assets it accepts, which then run in programs on independent networks. This allows the project to broaden the number of crypto assets borrowers can use to include XRP, BNB and BTC, among others.

By collateralizing cryptocurrencies to mint USDX, users receive weekly rewards in the form of KAVA, Kava’s cryptocurrency. 

The total amount of KAVA users receive is dependent on the type of collateral used and how much USDX a user mints. As an example, minters using BNB as collateral receive a share of the 74,000 KAVA that the platform issues weekly. 

If you wish to receive regular updates from the Kava team, including announcements on newly listed assets, you can bookmark the Kava blog

What is kava


Sino ang Lumikha ng Kava?

Kava was co-founded by Brian Kerr, Ruaridh O’Donnell and Scott Stuart in 2018. 

That’s when the founders established Kava Labs, a for-profit company whose goal is to develop and drive the creation of the Kava platform. 

The Kava team next held a token sale on the cryptocurrency exchange Binance in 2019, at the time raising $3 million through the sale of 6.5% of the total KAVA supply. 

Kava’s decentralized lending platform officially went live in June 2020 at which time BNB could be used as collateral for borrowing USDX. As of August 2020, $24 million worth of BNB were locked into contracts, with 8 million USDX borrowed. 
 

Paano gumagana ang Kava?


Kava allows users to lock assets in special smart contracts and borrow USDX.

On the back-end, this creates what is called a collateralized debt position (CDP), a contract designed to ensure the value of USDX remains pegged to the U.S. dollar. 

To set up a CDP, users: 

  • Deposit crypto – Users can connect their wallets to deposit cryptocurrencies.
  • Create a CDP –  Kava locks the deposited cryptocurrency in a smart contract. 
  • Create USDX – Users are issued USDX loans based on the value of the CDP.
  • Close a CDP - Users repay the debt plus a fee to unlock their collateralized crypto.
  • Withdraw crypto - Once the crypto is returned to the user, Kava burns the USDX. 

Collateralization Ratio

You can think of the collateralization ratio as the mechanism that helps protect the protocol from volatility that would reduce the value of the collateral. 

On Kava, USDX is often over-collateralized, meaning that borrowers must deposit an amount that is typically higher than the value of USDX minted by the protocol. 

The ratio of debt-to-collateral is then used to calculate the liquidation price. 

For example, a collateralization ratio of 200% would mean that a user will get liquidated if the value of the cryptocurrency locked in the protocol falls below 2x the USDX they have borrowed.

If the debt-to-collateral value drops below a specified threshold, the collateral held in smart contracts will automatically be liquidated and burned. 
 


Bakit May Halaga Ang KAVA?

Ginagamit ang KAVA cryptocurrency para gantimpalaan ang mga user na gumagawa ng USDX, at gumaganap ito ng mahalagang papel sa pamamahala ng Kava network. 

Higit na partikular, ipinamahagi ng KAVA ang pamamahala ng mga operasyon sa network, na nagbibigay-daan sa sinumang humahawak at tumataya sa cryptocurrency na bumoto sa mga patakaran at panuntunan ng software nito. 

Ito ay nangangahulugan na sa pamamagitan ng pagmamay-ari at pag-staking ng KAVA, ang mga user ay maaaring bumoto upang baguhin ang ilang partikular na parameter ng software. Kabilang dito, ngunit hindi limitado sa, ang mga asset na tinatanggap ng protocol bilang collateral, ang collateralization ratio na kinakailangan at ang mga bayarin na binabayaran ng mga nanghihiram. 

Maaari ding italaga ng mga user ng Kava ang KAVA sa mga validator na namamahala sa blockchain nito at makipagkumpitensya para sa bagong gawang KAVA, na naglalaan ng mga boto sa kanila upang makakuha ng bahagi ng stability fee na binabayaran ng mga user na nagsasara ng kanilang mga CDP.

Tulad ng maraming iba pang cryptocurrencies, limitado rin ang supply ng mga token ng KAVA, ibig sabihin, ayon sa mga panuntunan ng software, magkakaroon lamang ng 100 milyong KAVA.
 


Bakit Gagamitin ang KAVA?

Ang Kava ay maaring kaakit-akit batay sa kakayahan nitong magbigay sa mga nagmamay-ari ng cryptocurrency ng access sa mga desentralisadong serbisyo sa pagpapautang.

Ang paghihiram ng salungat sa cryptocurrency ng isang tao ay nagbibigay-daan sa mga user upang mapanatili ang pagmamay-ari ng mga asset na ito habang tumatanggap ng iba pang collateral na maaaring gamitin sa pagbili ng mga kalakal at serbisyo. 

Ang mga mamumuhunan ay maaari ding naghahangad ng pagbili ng KAVA kung sila ay naniniwala sa pangako ng DeFi at ang kakayahan ng mga protocol na ito upang sirain ang mga tradisyonal na serbisyo sa pananalapi. 
 

Simulan ang pagbili ng Kava


Ngayon ay handa ka nang gawin ang susunod na hakbang at bumili ng KAVA!