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KAVA cryptocurrency: How it works and where to buy it

Learn more about Kava, why the KAVA token is useful and where to buy it.

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Where to buy KAVA Find KAVA exchanges
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Andrew Munro
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KAVA is the native token of Kava.

Kava is a DeFi lending platform designed to allow users to earn high returns on its cryptocurrency by lending it out and using it as collateral for stablecoin loans. Kava’s native stablecoin is USDX.

Disclaimer: This information is not financial advice or an endorsement of cryptocurrency or any specific provider, service or offering. Cryptocurrencies are highly volatile and high risk. Do your own research and seek financial advice before buying. Please check with providers if their services are available in your state.
CryptocurrencyKAVA
Circulating supply (approximately, as of August 2020)27,000,000
Maximum supplyUnlimited
NetworkCosmos
PurposeGovernance, collateral, validator staking

What is DeFi? Read the beginner’s guide

How does Kava work?

Kava’s purpose is to allow people to lock up cryptocurrency as collateral, similar to other Ethereum-based DeFi projects. One of its key differentiators, however, is that it leverages the interoperability features of the Cosmos network to allow a wide range of cryptocurrencies to be more easily used as collateral.

In a nutshell, the cryptocurrency deposited into Kava collectively becomes the collateral for USDX stablecoins, which are pegged to US$1. The network is over-collateralized, giving people assurance that the USDX stablecoin can always be safely redeemed for $1 of value.

There are two basic things a user can do with Kava:

  • Lock crypto collateral in a smart contract to withdraw USDX
  • Stake (lend) USDX to earn interest

These can be combined, though, and can interact with other DeFi projects to be greater than the sum of their parts. For example, someone could take on a leveraged position by taking out a USDX loan and then using that to buy even more cryptocurrency.

What does the KAVA token do?

The KAVA token serves three purposes:

  • Governance. KAVA token holders can exercise governance rights on the Kava platform.
  • Lender of last resort. If all else fails, KAVA can start being liquidated to help guarantee successful USDX redemption.
  • Validator staking. The top 100 validator nodes on Kava’s network can earn staking rewards in KAVA.

How to buy KAVA

Here’s a step-by-step guide for one way of buying KAVA. Note that there might be other options available, so you may want to compare cryptocurrency exchanges to find the one that’s right for you.

Name Product Deposit methods Fiat Currencies Cryptocurrencies
Binance Cryptocurrency Exchange
Binance Cryptocurrency Exchange
Bank transfer (ACH)
USD, AUD, GBP, EUR, RUB, TRY, NGN, UAH, PHP, CZK & 20+ more

305
cryptocurrencies

Trade an extensive range of reputable coins on this world-renowned exchange, popular for its high liquidity and multi-language support.

US residents: As of September 2019, US-based users can only trade USD on the American dollar onramp of Binance, Binance.US.
UK residents: In addition to normal crypto trading services, Binance offers margin lending. As this is a regulated activity which they are not authorised to offer in the UK, we advise you not to use this service. If you're interested in margin trading, see authorised providers.
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View details
Huobi Cryptocurrency Exchange
Huobi Cryptocurrency Exchange
AdvCash, Cryptocurrency, SWIFT, Wire transfer
GBP, USD, AUD, EUR, INR, BRL, KHR, CAD,CNY, NZD & 15+ more

219
cryptocurrencies

Huobi is a digital currency exchange that allows its users to trade more than 190 cryptocurrency pairs.
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