New Binance-Backed DeFi Site Lets You Earn Yield on Bitcoin, Other Non-Ethereum Assets

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Kava Labs has released its first application: a Decentralized Finance (DeFi) a yield-generating platform for bitcoin ( BTC) and other non-Ethereum properties.

The product, named Harvest and developed on the Kava blockchain, allows users to loan their crypto to other users to be loaned out. Initially, Harvest will be funding BTC, BNB, BUSD, and XRP deposits. Soon, Kava Labs plans to debut automated market makers (AMMs) like Uniswap and robot-advisors like Yearn. Finance on the blockchain, CEO Brian Kerr of Kava Labs said.

Kava would allow users to build collateralized debt positions (CDPs) on the Kava protocol in exchange for a stable coin, USDX, pegged one-to-one with the U.S. dollar, similar to DeFi’s MakerDAO network. However, unlike Creator, Kava operates with assets outside of the Ethereum ecosystem that has mostly observed the DeFi craze from afar.

Kava Labs is funded by several major exchanges, including Binance, Huobi, and OKEx, which hold kava tokens and participate in the blockchain’s governance.

Yield farming, meet Harvest

Kerr said that Aave and Compound inspired Harvest, but that Harvest would carry the same capabilities to a greater variety of digital assets that these protocols have.

“When we were building out Harvest, we saw the design paradigm already working,” Kerr said. “What we can bring to the table is unlocking these much larger-market-cap assets and giving them the same type of lending and borrowing functionality.” 

Harvest users borrowing or lending on the app will earn their interest and HARD tokens, Harvest’s governance token, which will also be used to incentivize liquidity on the platform.

Kava is based on the Tendermint consensus algorithm, which is also employed by the interoperability project Cosmos blockchain.
In October, Kava made an initial exchange offering (IEO) for Binance.

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