Kava, the first cross-chain DeFi lending platform with its stablecoin USDX, and Binance, the global blockchain company behind the world's largest cryptocurrency exchange by trading volume and users, announced a collaboration.
It enables Binance Chain’s native cryptocurrency (BNB) utility to be used in collateralized debt positions (CDPs) enabling BNB users to seamlessly mint themselves USDX loans on demand. After a vote, the Kava community handpicked BNB as the first collateral asset to add to the Kava DeFi platform.
Out of all the other collateral assets on the Kava product roadmap, including BTC, XRP, and ATOM, the community voted BNB to be the first because of its strength as a top ten cryptocurrency and unique utility to Binance users who want DeFi support.
Binance is committed to maximizing benefits for its users and creating opportunities for its users to make the most of their crypto. Following popular demand from Kava’s community vote, Binance and Kava’s governance process brings additional utility for BNB holders to mint USDX loans on demand while earning additional rewards incentives each week. Now BNB holders will get more utility from stablecoins and self-generated loans created thanks to Kava's DeFi lending platform.
To accelerate the creation and adoption of USDX, the Kava community created a 15,000,000 KAVA Growth Fund (valued at ~$12M USD) that’s to be allocated to reward USDX minters. BNB users are to receive an allocation from the Kava Growth Fund based on how much USDX they mint.
Specifically, the Kava community voted to allocate 3,848,000 KAVA from the Growth Fund to BNB holders for minting USDX.
The Kava community wants to reward BNB users for their valuable contribution to the new lending platform with in-protocol rewards that are distributed across a clearly communicated inflation schedule. In response, Kava announced a promotion that spreads wealth and knowledge called #CryptoPayDay where every Wednesday at 14:00 UTC USDX minters earn 74,000 KAVA with in-protocol rewards for staking their BNB. Rewards will last for the next 52 weeks and start June 17th.
This new BNB DeFi utility enables BNB holders to take out self-generated loans and earn the highest yield on the market available today, by minting USDX, the crypto collateral backed stablecoin. The Kava community plans to grow USDX liquidity to $10 Million US dollars backed by $30 Million USD worth of collateral in crypto assets. That’s why the Kava Community voted to modify the Kava inflation curve so that additional KAVA is created and used for growth incentives.
BNB holders can now stake their BNB to mint USDX and earn KAVA simply by using their iPhone or Android.
“DeFi’s promise is to provide open and equal access to financial products in a way that is transparent, censorship-resistant, and fully decentralized. For the first time, Kava has opened the doors to DeFi for BNB holders, providing them with open access to stablecoin loans on demand. The KAVA rewards are given to BNB users that mint USDX to incentivize their participation and make sure Kava’s early adopters have a significant upside in the network growth. We plan to add other major assets such as XRP, BTC, and ATOM shortly. ” — Brian Kerr, CEO and Co-Founder of Kava Labs.
“We are excited that BNB users can now get access to DeFi products with Kava’s lending platform. By accepting BNB as collateral on its lending platform, Kava is creating another use case for BNB, which brings additional value for BNB users,” said Binance CEO and Founder, CZ (Changpeng Zhao).
Kava is a multi-asset DeFi platform that offers stablecoins, loans, and other financial services for users of major cryptocurrency assets including BTC, XRP, BNB and ATOM to name a few. The Kava platform has two types of tokens, the KAVA token and the USDX stablecoin where the KAVA token is the native token of the Kava blockchain integral in the security, governance, and mechanical functions of the platform. Users can collateralize their crypto assets in exchange for Kava’s stablecoin, USDX. Kava’s stablecoin provides a high interest yield earning users more than they would with a traditional cash or savings account at a bank, but unlike traditional savings accounts.
Binance is the world’s leading blockchain and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users, and features an unmatched portfolio of crypto products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more.