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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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 should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.
CryptocurrencyKAVA
Circulating supply (approximately, as of August 2020)27,000,000
Maximum supplyUnlimited
NetworkCosmos
PurposeGovernance, collateral, validator staking

What is DeFi and why is it a trend to watch in 2020?

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-collateralised, 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
CoinSpot Cryptocurrency Exchange
Bank transfer, BPAY, Cash, POLi, PayID
AUD

234
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CoinSpot is an Australian exchange that lets you easily buy, sell and trade more than 150 cryptos.
Swyftx Cryptocurrency Exchange
Bank transfer, Credit card, Cryptocurrency, Debit card, Osko, PayID
AUD

225
cryptocurrencies

Buy and sell a wide range of cryptocurrencies at competitive rates on this Australian exchange.
Binance Cryptocurrency Exchange Australia
Credit card, Cryptocurrency, Debit card, Osko, PayID
USD, AUD, GBP, CAD, EUR, CNY, RUB, TRY, NGN, UAH & 40+ more

263
cryptocurrencies

Finder Exclusive: Get $5 cashback when you make your first PayID/Osko deposit on Binance.com/au.
Binance is the world’s largest exchange by trading volume. Get started with instant zero fee AUD deposits and withdrawals in Australia, and enjoy low trading fees, a wide selection of cryptocurrencies and 24/7 local customer support.
Digital Surge Cryptocurrency Exchange
Bank transfer, POLi, Osko, PayID
AUD

225
cryptocurrencies

A digital exchange based in Brisbane where users can pay in AUD to buy their BTC.
Cointree Cryptocurrency Exchange
Bank transfer (ACH)
AUD

132
cryptocurrencies

Buy 100+ cryptocurrencies using POLi, cash or Electronic Funds Transfer.
Kraken Cryptocurrency Exchange
Bank transfer (ACH)
USD, EUR, GBP, JPY, CAD, CHF, AUD

53
cryptocurrencies

Buy, sell and trade a range of digital currencies on this high-liquidity exchange – suitable for beginners right through to advanced traders.
Huobi Cryptocurrency Exchange
Cryptocurrency
GBP, USD, AUD, EUR, INR, BRL, KHR, CAD,CNY, NZD & 15+ more

290
cryptocurrencies

Huobi is a digital currency exchange that allows its users to trade more than 190 cryptocurrency pairs.
Hotbit Cryptocurrency Exchange
Hotbit Cryptocurrency Exchange
AdvCash, Cryptocurrency, Payeer, Perfect Money
USD

512
cryptocurrencies

A multi-currency exchange with 150+ pairings that can be accessed through desktop as well as a mobile app.
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