Decentralized finance, or DeFi, platform Kava announced its intention to host a cross-chain money market on its Cosmos blockchain to capitalize on DeFi opportunities.
Kava said in a statement on its website that it wants to build an application called Harvest that will enable users to borrow or lend digital assets, including BTC, CRP, BNB, BUSD, KAVA, and USDX. Customers will be paid interest and in Harvest’s governance token HARD.
Harvest will integrate Kava price-reference data from Chainlink to facilitate cross-chain transfers. The firm said the platform could be accessed “by anyone anywhere” as it’s open and permissionless. Harvest ideally will help integrate “financial market stakeholders in niches not limited to fintech apps, exchanges, and financial institutions.”
Eventually, Kava said, it will releases more applications leveraging its blockchain for DeFi products. Harvest takes advantage of Kava’s mainnet upgrade.
Kava CEO and co-founder Brian Kerr said it was important that the company offer a governance token. It’s governance token, HARD, “will harmonize decentralized activities within [the] lending and borrowing ecosystem.” He said:
“Importantly, this foundation provides developers with the ability to quickly build applications on Kava’s open decentralized network while being able to leverage its security, cross-chain bridges, and other infrastructure that would otherwise cost millions and take years to develop independently.”
Harvest users holding HARD will also be able to manage reward distribution in the network and choose which digital assets can be featured. Kava said 20% of the total amount of HARD tokens to Kava stakers over the next few years.
Cointelegraph previously reported that Kava was chosen by Binance as one of its integration partners when the exchange was making its first steps in the DeFi space.