Kava Labs Hard Money Market V2 to Add Support for More Digital Assets and Stablecoins
Adam turman, Developer Support Engineer at Kava Laboratories, which aims to “democratize” financial services and make them more accessible to “anyone, anywhere” in the world, notes that when Hard Money Market V2 was introduced on April 8, 2021, Binance USD (BUSD) was the only asset available for borrowing.
This was carried out as a special “security measure”, with the team carefully monitoring the “effects” of this new functionality on this system “as a whole”, Turman Explain.
And after more than a month of “successful” BUSD borrowing implementation, Hard Money Market “will allow borrowing additional assets,” the Kava team confirmed.
Members of the Kava team also noted that while awaiting a committee vote on May 18, users may have the option to borrow $ BTCB (a BEP2 token that is “100% backed” by BTC) through the Hard Money Market. As a first step, the borrowing limit will be “set at USD 1 million for each asset”. And then “in a week, a committee proposal will be made to increase this borrowing limit in response to user demand.”
Turman further noted that this particular process will be “repeated for every asset on the platform.”
“As the safety of user funds remains the top priority, additional assets can be borrowed incrementally while effects on the system are monitored. Each week, a new asset can be borrowed via a committee proposal. “
As mentioned in the Kava Labs blog post, here is the order in which “assets will be activated” for borrowing:
- $ BTCB
- $ BNB (Binance coin)
- $ XRPB (a BEP2 token which is “100% backed” by XRP)
- $ KAVA tokens
- $ HARD tokens
- $ USDX (a stable coin that is supposed to be pegged to the US dollar) – this will take place “once the change in rewards from mint to supply is complete.”
As Turman noted:
“The full Hard Money Market implementation fits perfectly with the USDX minting on Kava and the future automated market maker – Kava exchange. By providing and borrowing hard money assets, users will have even more options to earn return on their crypto assets from Kava. “