Kava Labs Inject $185 Million for Growth
Decentralised finance (DeFi) company Kava Labs announced on Wednesday that it had launched a $185 million Ignition Fund that will be spent on assisting the several Defi projects on the Kava ecosystem and onboard new ones. Kava Labs is the creator of Kava, a Cosmos SDK-based DeFi network for financial institutions.
Various phases of how the ignition funds would be spent have been mapped out, and priority has been given to speeding up the process of onboarding new projects on the Kava platform that have been vetted. Kava’s highly scalable Layer-1 architecture and institutional-grade security will prove helpful for the selected high-quality projects.
The team at Kava believes that the time is right for projects that utilise the many opportunities within DeFi. Scott Stuart, CEO of Kava Labs, noted that Kava’s goal is to be the first to tap into the deep resources within the DeFi space, and the ignition fund will be used to transport the ecosystem there. He said, ‘there’s a massive opportunity in DeFi right now to be the first to bridge the gap between the early adopters and the untapped mainstream. The Ignition Fund is about getting Kava there first.”
Working towards a better experience
In cryptocurrencies, Kava has been working towards developing its financial applications and giving its users a better experience. Kava Labs started offering a protocol upgrade called “Kava 5” in April, which enables users of Kava-based apps to access additional capabilities. Users can now borrow against several cryptocurrency assets while also earning staking incentives thanks to improving the company’s infrastructure.
Kavi has adopted a different approach to scaling than other DeFi platforms. Other Defi platforms are focused on speed, Kava has its eyes on a broader view even though speed is a big part of its game plan. It boasts about 10,000 transactions per second and hopes to bridge the gap between mainstream adoption.
Kava offers security
Kava hopes to offer a sense of security and safety to its user by building a community where product experiences are relatable. The platform has a SAFU fund to protect user’s assets which goes a long way to offer a sense of security to users, and this feeling is needed for Kava’s goal of mainstream adoption.
As part of its plans for expansion and user satisfaction, Kava Labs announced that it had launched Kava Swap, a cross-chain liquidity gateway for DeFi, in late August. The automated market maker pools collateral from other chains and rewards liquidity farmers. To show its credibility, CertiK, a blockchain security firm, audited it.
The Kava ecosystem has gained a reputation as a secure, accessible home for DeFi, with its three protocols, $2.1 billion in assets on-chain, more than 280k users, and $1.8 billion in cross-chain transactions. American businessman and Bitcoin advocate Charlie Shrem has also thrown his weight behind the Kava ecosystem. In a tweet he shared, Shrem revealed he was hosting Kava’s Scott Stuart which would have left users excited and assured of its ambition.