Cryptocurrency Kava It debuted in the markets at the end of October 2019, and in less than a year it has already had some success.
The KAVA token was initially worth just under $ 1, and in mid-March 2020, when all the global financial markets collapsed, its value fell to $ 0.36.
But it has since recovered, first returning to $ 1 in early June and then taking off in July to its current value of $ 2.2.
In other words, in less than a year it has doubled in value, and since the March lows, it has grown 500% in just four months.
It is a Binance Chain based BEP2 token connected to the Kava DeFi platform.
The special feature of Kava's DeFi project is the interoperability of the different blockchains, which allows to open the collateral debt position (CDP) using Bitcoin, BNB (Binance Coin), XRP (Ripple) and ATOM (the native cryptocurrency of Cosmos).
This is a relatively recent project, benefiting from the great enthusiasm that has been poured into decentralized finance in recent months.
Some improvements have also been made recently, which may have affected the success of the KAVA token.
In particular, it was decided to introduce so-called "Stability Commissioners" into the onchain governance system to make the platform resilient in times of market volatility. In other words, since traditional governance is not fast enough to counter possible periods of very high volatility, some groups of people have been selected who have been granted special privileges, allowing them to make decisions very quickly.
For example, precisely during the collapse of the financial markets in mid-March, MakerDAO was forced to intervene a posteriori, which was too late to avoid all the problems. In fact, the intervention did not prevent problems from occurring, but only to address the consequences.
This led to Kava's idea of entrusting a small number of people with the task of intervening quickly if necessary.
In addition, in June, Kava announced the incorporation of BNB as collateral to borrow the stable currency USDX, which could also have helped increase attention on this project.
Truth be told, USDX tokens have yet to be released on the market, although they can already be created. Until May 2021, KAVA tokens will be distributed to those who will block BNB as collateral for USDX tokens.
A total of 74,000 KAVA tokens will be distributed, which can help raise awareness about the project.
To date, there are only 181 addresses containing KAVA tokens, with only 3,194 transactions since launch, but the project isn't fully operational yet, so they're not supposed to be surprising numbers.
Even the USDX token creation process is still relatively complex, and this certainly keeps the general public out at the moment.
We will have to see over time if this idea of making multiple blockchains interoperable will be successful or if DeFi platforms based only on Ethereum will continue to proliferate.