The DeFi frenzy is picking steam with every passing day in the cryptocurrency industry and there are no signs indicating it slowing down anytime soon. The monumental rise of the DeFi landscape is, however, not all that unsurprising. There has always been a strong demand for financial solutions and platforms that bridge the gap between lenders and borrowers without the involvement of any middleman. DeFi caters to this demand as it makes financial services more inclusive, open, and accessible.
Kava (KAVA), is one of the leading DeFi projects that are gaining unprecedented traction in terms of adoption. Kava utilizes the Cosmos chain and aims to become the de-facto DeFi platform for users by providing stablecoins and decentralized lending against all major crypto assets.
Recently, BTCManager got the opportunity to interview Kava Co-Founder and CEO, Mr. Brian Kerr. We ask him about Kava, updates on Kava-4 Gateway, future plans for the project, and much more. The interview with Mr. Kerr follows below.
Interview with Brian Kerr
BTCM: Currently, it seems there’s a new DeFi project coming up almost every day. What separates Kava from the rest?
Brian: Kava is the leader in cross-chain DeFi. We are trailblazing technology that is opening the doors of DeFi lending to major crypto assets like BTC, BNB, and XRP.
BTCM: What was the reason behind building Kava on the Cosmos chain? Why not Ethereum or any other smart contract platform?
Brian: There are many design reasons for building Kava from the ground up as a native chain. We needed to create a blockchain with its own security model or it would be near impossible to manage collateral assets from other chains safely. Our design choice also removed unnecessary transaction overhead and attack vectors seen on Ethereum, making Kava a safer environment for DeFi applications.
BTCM: What is the progress with the update to integrate cross-chain crypto assets to the CDP?
Brian: We currently support BNB. With the launch of Kava-4 Gateway in October, we will expand the collateral types to BTC, BUSD, and others.
BTCM: Kava’s documentation states users can use the platform to benefit from synthetic leverage. Can you explain synthetic leverage in simple terms for our audience?
Brian: Kava can be used to get a loan on crypto assets. A user can get a loan from Kava using BTC collateral and then use that loan to buy more BTC. This creates leveraged exposure to BTC price.
BTCM: Can you share some updates pertaining to Kava-4 (Gateway) launch?
Brian: Kava-4 Gateway will expand the functionality of Kava to Binance chain bridge. This will enable more assets to flow between the two blockchains. Importantly, this update will add BTC to the collateral types supported on Kava unlocking the ability for BTC holders to mint USDX on Kava and qualify for Kava incentive rewards. Lastly, Kava-4 Gateway includes a new issuance module. This module enables the governance group to vote and give permission to addresses to mint and burn their own tokens on Kava. While it can be used for many new projects, its main purpose is to enable the mint and burn of tokens like USDT, USDC, and BUSD directly on the Kava chain.
BTCM: What can the Kava community expect in Q4 2020?
Brian: I hope to see Kava’s collateral deposits and USDX issuance at least double in size over the coming months. Adding new collateral types should greatly increase this. Additionally, we have a few skunkworks projects and some fairly big enterprise integrations in the works that I hope to unveil in Q4. Lastly, USDX on Swipe Visa Cards will be usable at 60M merchants in Q4. I’m very excited to earn 4.5% APY with USDX and spend it like normal dollars all over the world.
BTCManager would like to extend its gratitude to the team at Kava and Mr. Kerr for taking the time to answer the questions.