Kava Swap

What is Kava Swap?

Kava core developers have successfully completed the development of a new application named Swap, a constant-product automated market maker (AMM) designed to facilitate token trading between users and a liquidity pool. The Swap application encourages users to engage in three key steps: exchange coins as needed, supply liquidity to earn rewards, and pair stablecoins for additional rewards and a share of exchange fees. It's a simple process collecting exchange fees, swapping coins, and earning rewards through liquidity provision.

The Swap module has undergone rigorous testing as part of the Swap Incentivized Testnet and has been subject to an internal audit. Currently, it is undergoing an external audit with CertiK, and once completed, the audit reports will be made publicly available. The development team is confident in the readiness of the code for deployment.

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Recent Video Interview

Main points of the interview:

• Insights into the development and growth of Kava Labs.
• Kava Labs is known for creating the Kava DeFi platform, which facilitates cross-chain collateralized loans.
• Highlighted the team's commitment to continuous learning and adapting to evolving market needs.
• Kava Labs pivoted to prioritize asset transfers and trading, reflecting market demands and readiness.

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Swap Parameters

Swap relies on governance to dictate which pools can be created. Initially, the proposal suggests creating a pool for all available tokens on the Kava platform against USDX. The proposed pools include pairs such as bnb/udsx, btcb/usdx, busd/usdx, hard/usdx, swp/usdx, ukava/usdx, and usdx/xrpb. The SwapFee parameter, representing the fee applied to each trade within a pool, is set at an initial rate of 0.15%.

SWP Token

The Swap application introduces SWP, a governance token enabling voting on parameter changes within the Swap application and alterations to LP rewards for Swap pools. Token holders can also participate in voting on proposals for updating or upgrading Swap functionality. The SWP token has a maximum supply of 250,000,000 units, with distribution allocated to the Ecosystem (5%), Team (15%), Treasury (25%), Kava Stakers (10%), and LP Incentives (45%).

Governance for SWP and HARD Tokens

Kava-8 introduces on-chain governance for both the Swap and Hard applications, governed by the committee module. The TokenCommittee, controlled by SWP and HARD token holders, has the authority to modify parameters and incentives for the Swap and Hard applications, respectively. This mechanism allows any address holding SWP or HARD tokens to vote on proposals related to these applications. The proposal suggests that the existing members of the Kava Stability Committee also serve as members of the Hard and Swap Token Committees.

Ecosystem

Kava's architecture promotes the free flow of users, assets, and projects into its ecosystem. The project showcases various featured projects, including Wagmi, Curve, Stargate, Sushi Trident, Beefy Finance, Abracadabra, Equilibre, Mare Finance, Kinetix, Hover, and Injective, each contributing to the broader Kava ecosystem.

Kava Swap Team Background

For over four years, Kava Labs has been at the forefront of developing decentralized products and services, providing users access to DeFi benefits without the associated market risks. Kava acts as a trusted nexus, connecting the world's major cryptocurrencies on a secure, scalable DeFi platform. Users can confidently mint stablecoins, lend, borrow, earn, and swap assets with a user-friendly experience and institutional-grade security. With a track record of safe project delivery, the Kava Platform stands as the most trusted, scalable, and secure cross-chain engine in DeFi.

Project Development

In 2024, the Kava ecosystem initiated Tokenomics 2.0, transitioning to zero inflation through community-driven governance. The pivotal year of 2022 saw Kava transform into an EVM-based Cosmos-Ethereum interoperable Layer 1 blockchain, attracting notable projects like Kinetix Finance and WAGMI. With 127 new dApps on Kava Chain, the ecosystem's growth is evident.

Tokenomics 2.0, effective from January 1st, 2024, established a fixed supply of approximately 1 billion KAVA tokens, driven by Governance Proposal 141. The introduction of the Strategic Vault, managed by the Kava DAO, ensures sustainable rewards and decentralization. Kava Chain's future focuses on enhancing throughput, deploying innovative protocols, and fostering a robust community within the Ethereum ecosystem.

Key initiatives include reducing block time, achieving high throughput, and introducing a Liquid Staking Derivative (stKAVA). A strategic objective involves leveraging Tether (USDt) to increase its market share and on-chain volume, aiming to onboard 10 million users as Cosmos's primary collateral for DeFi applications.

Kava Swap Price Analysis

As of December 22 2024 Kava Swap has a marketcap of $1.2M. This is {{percentagefromath}} from its all time high of $3.46. In terms of its tokenomics, there's a total supply of 250M with 91% currently outstanding. Keep in mind Kava Swap has a fully diluted value of $1.3M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.