Kava Swap offers high rewards and low fees with its efficient platform. This decentralized exchange allows the trading of popular assets without the high fees associated with the process. It uses the Layer 1 framework and institutional-grade security to ensure a scalable and safe platform. We could not find info on the company like its founding year, its headquarters, phone number, etc.
Kava Swap overview
Some of the key features of this platform are listed below:
The platform is a cross-chain system that works between different blockchain networks. It is described as a permissionless and censorship-resistant system based on the Cosmos SDK.
- Native token
Kava token is the native token of the platform. It works as a tradable asset. It also serves to reward users for minting USDX using the Kava app.
- Borrow and lend
The exchange allows loans of decentralized form that do not have issues with entry, gatekeepers, and other such problems found with traditional loans.
How does Kava Swap work?
The DEX allows for all the following functions:
1. Kava Protocol
The Kava protocol includes rules and behaviors that allow permissionless lending and borrowing. The Hard protocol is based on the Kava protocol and is used for autonomous money market inclusion. Users get the Hard token, another asset on the Kava system as a reward for lending or borrowing using the Hard app.
2. Collateralized Debt Position(CDP)
CDP is a special module used by the platform for creating stable coins that are linked to fiat currencies like the USD. A lender uses his crypto asset as collateral for minting or making new stable coins. If the price of the collateral reduces below the set liquidation price, the CDP will be liquidated. So, the vendor recommends limiting the minting to I/2 or below the collateral’s value.
Staking of Kava can be done by running a validator node or by bonding your tokens to a third party that runs a node. Bonding locks the coins you hold temporarily for 21 days. To use assets on the exchange, you have to first move the assets to Binance Chain and then to the Kava chain.
What can you buy on Kava Swap?
Kava works with the Cosmos SDK blockchain. You can buy the native assets of the platform including Kava, HARD, and USDX. With the HARD and KAVA, you get to vote on the protocol rules. Kava works as a staking value for Proof of Stake. Thus, KAVA helps to protect loan safety and also as the lender of last resort in specific situations. Other tokens issued on the exchange include other crypto coins that have been tokenized like BNB(Kava), BTCB (Kava), and more.
Is Kava Swap safe?
As per the info provided by the vendor, the platform uses institutional-grade security. It uses robust Golang-based architecture that makes it safe and scalable.
Kava Swap fees, compatible wallets, and transactions
Supported wallets of the DEX include Trust Wallet, Ledger, and Keplr. Here is the payment info for using the platform:
- Transaction fees: According to the vendor, the transaction fees are optional and charged only when the network is busy. Or they are added to prioritize a transaction so it can be quickly completed.
- Gas fees: For complex or big transactions the gas used may increase. The gas used is proportional to the computation and state access required by a transaction. However, the vendor does not provide the gas fee info.
Similarly, we could not find info on the fees charged for deposits and withdrawals.
What are the ways to trade on Kava Swap?
Listed below are the ways to use the exchange for earning money:
- Staking: You can stake the KAVA token by running a validator node or by bonding your tokens to a third party that runs a node.
- Borrowing: You can use your assets to borrow assets. With the borrowed assets you can earn returns by trading or using other DeFi options. You can borrow USDX using KAVA and use KAVA for other assets.
- Lending: You can earn rewards in the form of HARD tokens by supplying your assets to the Hard protocol.
For support, the vendor provides an online contact form. Links to Telegram, Medium, Discord, and Youtube are also present besides an FAQ section.
Should you trade with Kava Swap?
Kava Swap summaryKava Swap summary
- Low transaction fees
- High reward potential
- Get decentralized loans
- Vendor does not provide info on the transaction fees and other charges
- For sending assets to the platform, you have to first move them to Binance Chain.