Rhythm NEXT | wave of NFT, Kava Swap data how to grow?

Since the launch of the second season of The BlockBeats NEXT live series, the momentum has not decreased, and continues to receive wide attention in the industry. Kava Swap is undoubtedly a new star in the DeFi field with its data steadily increasing recently. On September 9th, Scott Stuart, co-founder and product leader of Kava Labs, as a guest of the second issue of BlockBeats NEXT series, told readers and viewers in detail how Kava Swap data grew against the trend under the WAVE of NFT.

Meanwhile, Scott Stuart reveals how Kava Swap thinks about security in a year of frequent cross-chain security issues. In addition, Kava Labs announced its rebranding last week. What will the rebranding of Kava bring to you?    

The following is a transcript of the live broadcast:

BlockBeats: We asked Scott Stuart to tell us a little about himself.

Scott Stuart：大家好，我是 Scott Stuart，在 2017 年创建了Kava Labs 公司。 2014 年我在波士顿开了一家广告技术公司 AppEase ，目前Kava Labs 总部也是在美国波士顿。在那之前，我的职业是专业的网络扑克玩家，2006 年这类职业很流行。  

律动 BlockBeats： Kava 8 主网和 Kava Swap 已经于一周之前正式推出，请向大家介绍一下 Kava Swap 这个项目。

Scott Stuart: Kava Swap 是第三个产品， Kava Mint（Kava CDP）是第一个产品，然后是 Kava Lend（HARD） ，Kava Swap 定位是全球首个连接 DeFi、区块链和金融服务的跨链流动性中心。它的推出是 Kava 生态乐高的一块重要组件。Kava Swap 提供的是自动做市 (AMM) 服务，相比中心化的交易平台，交易者可以直接与流动性池进行交易，交易双方的代币都存放在流动性池中可进行无缝交易，并获得流动性奖励。

As an open, permissionless application, Kava Swap is not only for single traders, exchanges and institutions can use Kava Swap to obtain additional liquidity, trade assets and gain profits. Through Kava Swap, users can complete the process of coin minting, borrowing, trading and earning income through the circulation pool in one stop in Kava, which will greatly improve capital efficiency.

Rhythm BlockBeats: At present, there are Kava Mint (Kava CDP), Kava Lend (HARD) and Kava Swap in the Kava ecosystem. Can you introduce the roles of the three in the ecosystem and how to empower each other so that users can enjoy functions not available in other public links in this ecosystem?

Scott Stuart: 我们主要的功能也是与我们的竞争对手 Solana、Avalanche、Polygon 等的区别。随着 Kava Swap 正式推出后，用户可以在 Kava 中一站式完成铸币、借贷、交易、通过流动性池赚取收益的流程，可以说是把用户在上游的交易需求和下游的 DeFi 需求完美结合到了一起。

All three products on the Kava DeFi platform can be used independently or in tandem. Users can perform multiple nested mining on The Kava Mint and Kava Lend platforms. They can borrow stable currency USDX from the Kava Mint platform and deposit it into Kava Lend platform to get Kava and HARD rewards. Staking the KAVA rewards is otherwise staking, and liquidity rewards and other assets can be added to the KAVA Swap liquidity pool for SWP rewards, or assets can be lent from KAVA Lend to KAVA Swap for liquidity for LP gains.

The yield of Kava Lend's supply of USDX was around 140% at its initial launch. With the increase of participating users, it still remains at about 100% at present, while the yield rate of the newly launched liquidity pool of Kava Swap is as high as about 350%.

  Scott Stuart, Co-founder and Product Lead, Kava Labs & NBSP;  

BlockBeats: Cross-chain security is a hot topic in the community before. Can the team explain how Kava Swap avoids and eliminates security incidents?

Scott Stuart:Of course. We just passed the one-year anniversary of the Binance Bridge, the first cross-link, and over $1.5 billion of assets have been completed between Kava and Binance. You can build this infrastructure in a safe and secure way, but it's hard to do. So we're focusing on security, enough security as a feature that's going to make us the platform that people ultimately choose to be the custodian of their money in the next one to two years, five to 10 years. We think this is going to take us to a much bigger place.

In Kava's product planning and architecture, security is one of the most important issues.

Kava mainly guarantees product security from three aspects. The first is the technical level. Kava's code base is completely open source, and the code is specially designed for financial applications, which ensures a highly secure and rigorous foundation for financial application development. The second is the strict security guarantee process. Before launching each application, Kava will conduct a complete internal audit and open several rounds of testing network activities. By encouraging more users and nodes to test the carrying capacity of Kava application and feedback the problems at the front and bottom of the product. After the internal audit passes and before the product goes live, Kava works with third-party professional code auditors to examine the most sensitive and complex parts of the code, find bugs or suggest refactoring. All audit reports and feedback issues will be made public by third parties.

The most unique aspect of Kava's security is that in addition to these upfront safeguards, Kava has also established a SAFU fund of up to $10 million through community governance, so that users who have lost money due to unforeseen bugs, vulnerabilities, hacks, liquidation failures, or other technical issues, You can get compensation.

Kava's security has stood the test of time and we have deployed 3 DeFi protocol modules on the Kava chain without experiencing a single security incident.

BlockBeats: Kava has completed over $1.5 billion worth of cross-links with Binance, according to Kava's official disclosure. How does the newly built Kava Swap grow in the NFT boom? How does Kava Swap compare to other protocols?

Scott Stuart:Yes, before Q4 starts, in about a month and a half to two months, we're going to launch an Ethereum bridge that will allow USDC and ETH, and that's actually something that we learned from Binance and improved on, and I think the Binance bridge has been successful, and we've had a lot of applications with it.

First of all, Kava is a mature cross-chain DeFi public chain. The Kava Mint cross-chain lending agreement and Kava Lend agreement we launched before have been tested for more than a year without any security problems.

Before The launch of Kava Swap, Binance was the only channel for users to add assets to Kava. Over the past year and a half, the partnership between Kava and Binance has laid a solid foundation for the Kava ecosystem, with the current cross-chain bridge between Kava and Binance safely and autonomously transferring over $1.5 billion of assets.

Now, with the successful launch of Kava Swap, users around the world can now add their crypto assets directly to the Kava platform. As mentioned above, Kava Swap can enjoy all the resource integration and on-chain environment accumulated by Kava in the early stage, and based on the market's trust in the brand, Kava Swap will have more space to play.

Kava's direction is not limited to promoting capital utilization in DeFi or the blockchain industry. While addressing the existing DeFi needs in the industry, we also aim to facilitate the integration of DeFi with the traditional financial sector. That's why Kava is pursuing an IPO, partnering with Circle and launching USdcs on the Kava chain.

BlockBeats: There is no doubt that tokens are probably the most important issue for users. Would you please introduce the subsequent uses and functions of Kava Swap token SWP?

Scott Stuart: SWP 是治理代币，就跟 Uniswap 的 UNI 代币已于，我们进行了一个空投活动给那些已经在提供 USDX 的用户，我们这样做的原因是他们已经在提供资产了，我们给他们 SWP 代币，他们应该会想要在交易池中提供流动性 。 事实证明，Kava Swap 上线第一天就有超过 1500 万到 2000 万美元的代币流入到交易池中。Kava Swap 也一直坚持用 SWAP 代币来激励和回馈用户。Kava Swap 中的交易是使用原生稳定币 USDX 进行交易的。

Kava Swap tokens (SWP) issued 250 million, with distribution scheduled to be completed in four years. 55% of the total supply will be allocated to the community, i.e. mobility provider incentive, KAVA pledge incentive and other activities such as community vote, 25% to the foundation, 15% to the team and 5% to ecology.

Governance tokens are necessary for proper decentralization, liquidity incentives, and to ensure the continued growth of applications. Kava blockchain relies on Kava governance. Before the upgrade of Kava 8, Kava Mint and Kava Lend relied on Kava governance. The new mainnet has introduced Kava Lend and Kava Swap's respective governance tokens for their protocols.

The Kava Swap governance token SWP will give the holder a say on Kava Swap. SWP holders will be jointly responsible for managing key parameters of Kava Swap, such as which assets are offered, how rewards are allocated among Kava Swap assets, and platform rates.  

BlockBeats: Just mentioned, Kava ecology has three modules, and each module has its own governance token. Holders of each module's governance token will think and vote based on their own interests. How does Kava balance governance issues among several modules?

Scott Stuart:Kava provides a complete DeFi infrastructure, including an underlying public chain with interoperability and cross-chain capabilities based on the Cosmos SDK and Tendermint consensus algorithm, a pricing mechanism that integrates the Chainlink decentralized predictor, and a time-tested on-chain security environment. Based on this infrastructure, Kava currently publishes three DeFi protocol modules:

The Kava platform runs on the Kava blockchain and is governed by Kava tokens.

The Kava Mint protocol runs on the Kava platform and is governed by Kava tokens.

The Kava Lend protocol runs on the Kava platform and is governed by HARD tokens.

The Kava Swap protocol runs on the Kava platform and is governed by SWP tokens.

Kava gives governance of each protocol back to its users, and each protocol is relatively independent and has its own community. For example, Kava Swap is an AMM product similar to a trading platform. Users who only care about DeFi lending may not care about this business, so they have no interest in participating in governance.

At the same time, however, because all three agreements are built on Kava blockchains and enjoy the secure on-chain environment provided by Kava Staker, each protocol designs token allocation in a proportion that rewards nodes and users for doing Kava Staking. KAVA holders are the administrators of KAVA's underlying blockchain, and KAVA hopes to balance the decentralized governance of the entire KAVA ecosystem through this form.

Recommended reading:Kava Labs announced the rebranding of its Kava portfolio and released its latest roadmap  "

BlockBeats: THE popularity of NFT is quite high recently. Does Kava Swap consider combining with NFT in the future? Should DeFi and NFT be linked?

Scott Stuart:Kava Commons ecology is currently developing its Grants program, so if there are safe, incentivize applications that are going to grow within the Kava Ecosystem, Kava welcomes them. For projects to be developed on the Kava blockchain, we have a strict review process like the App Store to ensure that the applications provided to Kava ecosystem users are safe.

At present, Kava has been deeply engaged in the financial field, in addition to security, we pay more attention to the utilization of products. NFT is a good place to be, and the auctions they're involved in are currently used in Kava Mint and Kava Lend. I think Kava can help NFT better "financialize" their asset transfer and exchange. Kava has a strong advantage in network efficiency and fees, and can support more innovative applications beyond NFT to realize value in the future.

BlockBeats: A week ago, Kava Labs announced the rebranding, which made users see Kava Labs' determination of decentralization. Is it possible for Kava Labs to change to DAO organization in the future?

Scott Stuart:First, it should be clear that Kava is a decentralized hub that supports cross-chain DeFi applications and services, and the Kava Labs team has no control over the Kava token.

KAVA holders can control the future of KAVA blockchain by participating in voting through decentralized on-chain governance. From this perspective, the concept of KAVA Labs is not very different from that of DAO decentralization. Kava started with the Cosmos SDK module and has been committed to providing decentralized services. Kava aims to become an institutional-level decentralized financial platform.

BlockBeats: According to the official introduction, Kava will also release an intelligent investment service and application platform this year. In addition, what is the new development plan for Kava and Kava Swap?

Scott Stuart:The next phase of Kava's development will focus on increasing the scale, product capabilities and liquidity of the Kava platform. Kava's vision is to provide users with more profitable and user-friendly financial products than centralized platforms like Coinbase.

Kava's smart investment products will serve users at two levels: intelligent asset allocation portfolio and optimal portfolio investment by fully invoking multiple protocols of the Kava platform.

Smart investment will help users to enjoy automatic investment strategies in the various financial services offered by Kava, and will increase user engagement by providing yield generation strategies for more low-active Kava users.

Kava's goal is to help as many users as possible make the most of their holdings and generate more revenue, but for those who don't know much about investment strategies or are less active, smart investment can be a very useful tool.

Kav will also continue to work with more large crypto financial platforms, such as Binance, Huobi and AscendEx, to develop more secure and easier to use protocol software to provide users with a complete portfolio of institutional-level DeFi platforms.

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