Kava Defi Platform Channels $185 million into Ecosystem Expansion

Sahaj  |  Sep 22, 2021

Kava, a decentralized finance platform, is channeling a huge amount of funding into the ecosystem expansion with the focus of scaling Defi for the mainstream. The cross-chain Defi platform made an announcement on September 22 stating that it is embarking on the next phase of growth with the launch of the Kava Ecosystem.

Kava Defi Platform Launches the $185 Million Ignition Fund

As officially revealed by the company, the funding raised from seed rounds is going to be utilized by Kava in launching the $185 million Ignition Fund which targets to onboard high-quality Defi projects and scales them for what it describes as the coming wave of mainstream Defi users.

It added that selected Ecosystem projects will advantage from the highly scalable Layer-1 architecture and institutional-grade security of Kava.

At present, it should be noted that there are just three protocols running on Kava including the Hard Protocol, with $2.1 billion in total value locked, over 280,000 users, and $1.8 billion in cross-chain transactions.

In addition to this, Kava enables users to take out loans by locking in collateral in exchange for a soft-pegged USD stablecoin called USDX. It reportedly runs on the Cosmos blockchains such as Bitcoin and Ethereum.

Scott Stuart on Defi Opportunities

The CEO of Kava, Scott Stuart, laid an emphasis on bridging the gap to enable mainstream adoption and 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.”

Back in the month of August, Kava Labs launched a cross-chain liquidity hub for Kava Swap Defi. The AMM aggregates collateral from other chains and provides liquidity farming incentives.

As for the native token of Kava, the token hit an all-time high of 9.12 on August 30, but at present, it has lost almost half of that in just a matter of three weeks.

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