Crypto Bank Kava Labs Announces Its Liquidity Hub Bridging DeFi, Blockchains, and Financial Services

Announcements, Blockchain, Innovation, News | May 10, 2021 By:

Decentralized crypto bank Kava Labs has announced its next project, Kava Swap, the first production ready cross-chain liquidity hub for all DeFi apps and financial services.

Kava is a decentralized bank for digital assets providing users with stablecoins, loans, and interest-earning opportunities. Its platform offers decentralized leverage and hedging of major digital assets such as BTC, ATOM, and BNB, built by Kava Labs. The first DeFi application built within the Cosmos ecosystem, Kava aims to bridge the crypto economy and traditional collateralization processes through the issuance of USDX, a US dollar-pegged stablecoin loan in proportion to digital assets collateralized. Using a system of smart contracts, Kava enables users open access to loans and algorithmically managed stablecoins backed by crypto assets— empowering digital asset owners with user-friendly DeFi services, making them more accessible than ever before.

Kava Swap, which will be available in August, is a cross-chain Autonomous Market Making (AMM) Protocol built on the Kava platform that delivers a seamless way to swap between assets of different blockchains and deploy capital into market making pools to earn returns.

“AMMs are emerging as the next big thing in DeFi,” said Brian Kerr, Chief Executive Officer of Kava Labs. “In traditional finance, market maker returns are reserved for only the most sophisticated trading firms. AMMs enable users of all kinds to participate. This increases the liquidity of markets while empowering even the smallest of users. The next logical step is expanding AMM interoperability in order to give traders and LPs a wider range of options and opportunities. With Kava Swap, we are building cross-chain liquidity pools to trade the world’s largest assets and to give all users the ability to maximize returns by leveraging the complete Kava platform.”

Built as an open and permissionless application, Kava Swap is accessible by anyone, anytime, anywhere in the world. Exchanges, FinTech apps, and financial institutions can leverage Kava Swap to access additional liquidity, trade assets, and extend earning opportunities to their users.

“Kava Swap gives everyone the ability to put their crypto to work,” continued Kerr. “Our architecture connects assets and ecosystems so that anyone can earn high yields and swap seamlessly across blockchains. We are building a highly extensible, complete and secure liquidity infrastructure to provide a safe, efficient and streamlined user experience. With our platform, there is no need to go elsewhere to source the assets you need to conduct your crypto-transactions, empowering even little guys to be market makers.”