Firstly, what are protocols?
Protocols in crypto terms, governs our blockchain network can function.
This means that protocols refer to the way a block chain or ecosystem works or operates; it's security, what users do with it, and how it helps the users.
In this article, I'll be explaining the protocols in the Kava Blockchain.
Though, the Kava ecosystem has reached escape velocity from the growth stage with over 100 protocols deployed;
But I'll narrow down to the basic and most important protocols that operates in Kava Chain
1. Governance
Like MKR, Kava holders or users can vote on proposals to change the block chain or the system parameters during the total amount of USDX that can be issued, the price of stability fees for C. D. Ps
2. Staking
The Kava Chain uses the proof of stake mechanism in operation.
This implies that the users can lend a stable coin on the Kava platform with a collateral.
In staking, the user is to stake a crypto asset of choice as collateral for the loan issued.
This is known as "Kava Mint"
3. Swapping
The Kava Chain also allows users to buy and sell tokens across the Kava blockchain and earn rewards by providing liquidity to pools.
This is called "Kava Swap"
4. Liquidity (C. D. P. Auction)
Like a margin call, the system automatically liquidates the collateral if the debt-to-collateral value drops below a specified threshold
5. Validators' Commission
Those running validator nodes can charge commissions to users that delegate stakes to them. Kava now pays 5% commission to the validators.
6. Lending: In Kava Lend, users are allowed to self-issue loans with no counter party nor credit score required.
Kava Lend allows users to earn rewards by supplying and borrowing assets from money markets.
In Conclusion,
Several protocols are being put in place in the KAVA Ecosystem to aid the easy use of the chain and for users benefits.
These protocols are built on the Kava Blockchain and comes complete with interoperable cross-chain tooling, secure price feeds, institutional-grade safety and reliability
I hope you have learnt from the protocol explanations I have just made in this article
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