Kava Is one built in the ecosystem background SDK, like .com, , Chain (not ),… Initially, this was just an array project with to be , which is supported by popular electronic assets such as: , , ,

In one notification today (September 22), the development team said they are embarking on the next phase of growth with the launch of the ecosystem. .

Using funding from seed rounds, is launching a $185 million Ignition Fund that aims to advance projects high quality and scale to the “wave of users” official".

The team adds that selected ecosystem projects will benefit from a Layer-1 architecture, high scalability, and organizational security. There are only three protocols running on Kava including Hard Protocol, with a total value of $2.1 billion locked (), over 280,000 users and $1.8 billion in cross-chain transactions.

DeFi for the mainstream market

Kava allows users to borrow money by locking up collateral in exchange for one pegged to USD is . It runs on Cosmos and process transactions from other like and .

Read more  Review of DeFi Derivatives on DEX in 2023

It claims to have a fundamental approach to scaling compared to other DeFi protocols and networks, boasting up to 10,000 transactions per second. Kava is aiming to bridge the gap to facilitate mainstream adoption. CEO Scott Stuart explains:

“There is a huge opportunity in DeFi right now to be the first to bridge the gap between early adopters and the untapped mainstream market. The Ignition Foundation will bring Kava to the finish line first.”

There is also a SAFU fund to protect user assets, providing the additional security required for mainstream adoption.

At the end of August, Kava Labs launched a cross-chain liquidity hub for DeFi called Kava Swap. Automated market maker () aggregates collateral from other chains and provides incentives to increase liquidity. It has been audited by blockchain security firm CertiK.

Price

Kava's token did not react well to the news having seen a 6.3% drop on the day, which is in line with the broader market decline. At the time of writing, KAVA is trading at $4.82.

Kava Drives DeFi With $185 Million Ignition Fund

KAVA price chart | Source: Tradingview

KAVA hit an all-time high (ATH) of $9.12 on Aug. 30 but fell by nearly half three weeks later. There are 91 million KAVA in circulation giving it a market cap of $441 million and staying outside the top 100.