Kava AMA Recap

Kava AMA Recap

CryptoDiffer team

Hello everyone! 

We are glad to meet here Aaron Choi (@a1choi), Head of Business Development, ASIA and Stan Press (@stanpress), Head of Marketing

Stan Press
Head of Marketing

hi everyone! Stan here, as mentioned, I’m the Head of Marketing at Kava, super hyped to talk to all of you. 🙂

Aaron Choi
Head of Business Development

Hey everyone!! So excited to be able to do this AMA with you guys.  Looking to answer any questions you might have about Kava and that everyone comes away with some more knowledge about us and what Kava is trying to achieve.

CryptoDiffer team

Can you introduce yourself to the community? What is your background and how did you join Kava ??

 

Aaron Choi
Head of Business Development

So I’m the Head of Business Development, Asia for Kava.  Just joined not that long ago (a couple weeks)!  But I have been in crypto for a long time, previously I was CEO of GJ.com exchange and before that I was VP International Exchange at BTCC/BTCChina, one of the first exchanges in china.  I have been interested in DeFi and Kava and the team just seemed like a great fit to join them.  I really think that what we are building will bring so many more options for users and allow for more mass adoption for crypto.

 

Stan Press
Head of Marketing

Coming into blockchain after 14+ years in marketing and business development in video games/esports! I got to help build up several great accessory brands, market research agencies, and sponsorships in those two areas. that’s where I’m excited to bring my expertise in such established industries to blockchain.

our CEO Brian and I go a fair bit in games/esports and as we kept in touch, I saw how passionate him and his team were around what they’re building at Kava. once the opportunity presented itself to jump into something new and exciting, I had to make it happen!

 

CryptoDiffer team

Can you briefly describe what is Kava in 3-5 sentences? What technology stands behind Kava and why it’s better than the existing one?

Aaron Choi
Head of Business Development

Kava is building a DeFi platform that offers users an open and trustless lending platform.  What this means it that users are able to get loans in return for collateral in a trustless fashion, extremely transparently at a lower cost as middlemen brokers are eliminated.  Importantly, Kava is built on the Cosmos-SDK so we have our own security model and not reliant on the roadmap of say ethereum.  We can rapidly prototype and roll out new features (coded in GO) and conquer new things more quickly.  Kava will allow many different types of cryptocurrencies to be used as collateral by building on top of an interoperable stack including IBC – the interblockchain communication module which will enable interopearbility between all Cosmos chains like Binance, Kava, and Cosmos.

Some of the major milestones definitely include completing 3 rounds of private fundraising, as well as completing 3 successful testnest launches.  We have over 100+ partners including validators in our ecosystem.

For the future, we have our IEO tomorrow (under 24 hrs for lottery), and we have our Mainnet launching on Nov 5th.  So these are very soon to be completed milestones too!

 

Cryptodiffer Community

How KAVA team will be focusing on Indonesian market?

 

Aaron Choi
Head of Business Development

I will be focusing on Indonesia for some of my time.  I know that there is a lot of crypto enthusiasts in Indonesia and I would love to explore more of that!

 

Cryptodiffer Community

Maker’s  CDP lending system is on top in this market and its Dominance is currently sitting on 64.90 % , how kava will compete will maker and compound ? 

Aaron Choi
Head of Business Development

How we compete with other products is really the same as how other companies compete with each other.  To build better and easier to use products for more users and more markets, like we are doing building for cross-chain interoperability.  We have a very technically talented team as well.  And also we look to create more innovations around crypto financial derivative products that normal users as well as more technical traders might want to use.  All these will move the needle for mass adoption

Cryptodiffer Community

1/ It is good to know that KAVA focus on DEFI, which is emerged as one of the best solutions for current problems of centralized finance. Besides, there are also many blockchain projects working on DEFI solutions. Who are you considering as your main competitors in DEFI field and how are you different from them with regards to vision and mission of the project?

2/ What will Kava offer to be revolutionary and game-changing in DeFi field?

Stan Press
Head of Marketing

1. Yes. It is leaderless (all nodes complete equal)

2. No, except boundedc by the total supply of FTM

Cryptodiffer Community

Q: With a small market like crypto There have been many projects and exchanges like Binance developing a crypto mortgage lending service. So what is the difference of KaVa to be able to attract users to use KaVa’s services?

Q: Why do you name the project KaVa, what does it mean?

What is the multi-asset CDP system? What role does it play in the KaVa ecosystem?

Aaron Choi
Head of Business Development

Right now the crypto space is very small, so I don’t think we need to compete for users, as that would kill all of us in the long run.  What we really need to focus on, and one of the things that we are doing at Kava, is to find ways to create a bigger crypto market.  Things like building a CDP (Collateralized Debt Position) platform that works across different blockchains is something that might be able to gain more users than just building a protocol based on only one blockchain.  Also, building a trustless easy way for people to lend and borrow crypto is something that might allow more users to get into crypto as well as unlock more utility from holding that crypto.

As for our name, here’s some quick info haha.

Kava is a coffee.

Kava is Hippopatamus to Japanese.

Cava is a region in Spain

Kava is also a root that is used in tea which makes your mouth numb.

Kava is also crow in Hindi.

Kava last but not least is a DeFi platform launching on Binance

We liked the sound of Kava it was as simple as that. It doesnt have much meaning in the USA where I am from. But it’s short sweet and when we were just starting, Kava.io was available for a reasonable price.

and quickly, a CDP is basically something that allows one to borrow based on some other collateral put for that loan.  We do this algorithmically on our protocol.

Cryptodiffer Community

KAVA is powered by Cosmos – one of the highest rated project in 2018 because of its high-technology. What role will Cosmos play in your project’s development? Do they have any impact on Binance’s decision to choose KAVA as next project on Binance Launchpad?

Aaron Choi
Head of Business Development

Well, Sunny Aggarwal who is a core dev and research scientist at Cosmos is one of our advisors.  We really value his imput which provides us with so much insight on how to best utilize the Cosmos platform as well as be an integral part of their ecosystem, and them to ours.

I’m sure building on top of the Tendermint consensus didn’t hurt when Binance was evaluating our project.  It just so happens that the chain Binance is building is also based on Tendermint so you can imagine the synergies that might be available in this type of partnership.

 

Cryptodiffer Community

1. Hi i’m from Indonesia but same as other country that have a strict regulation in crypto, i want to know how you manage to expand on country like this, will u make special program so much people can participate legally in the future?

2. Kava has launch testnet 3000, if i just want to start joining with it, for a noob like me, can you explain how the coin produced on that testnet (in easy language), and did we must provide any coin for that? how much? also what we’ll get in return? thank you

Aaron Choi
Head of Business Development

Unfortunately we do follow all relevant regulations when it comes to KYC and other sensitive issues.  That being said, we also look for innovative ways to work with as many users as we can.  We also keep up to date and if any good progress shows on regulations sides, then we will expand whereever is open for us.

The basic requirement for a node is nothing really.  But in order to earn block rewards you must be a node with the top 100 KAVA by weighted stake at a given time. If you are looking for technical specs, I suggest you check out the Cosmos FAQ for a guide. https://cosmos.network/docs/cosmos-hub/validators/validator-faq.html  For staking rewards, we don’t have exact numbers but our models show between 3-20%.

Cryptodiffer Community

First of all, Congrats Kava team and @stanpress @a1choi for being chosen as the next Binance Launchpad! My questions are as follows:

[1] Why don’t use choose Ethereum as one of the collateral that user can use? Will there be other cryptocurrencies accepted as collateral in your platform in the future?

[2] One of you main partners is Ripple. How are they involved with your project?

Stan Press
Head of Marketing

1. We love everything that Ethereum has brought to the industry but building on it can be very hard and limiting. What MakerDAO and other projects have done is nothing short of incredible. 

And yes, we look to be adding additional currencies in the future as the markets evolve. To start, we’ll be aiming at BTC, BNB, XRP and ATOM.

2. Ripple is an equity investor in Kava and a big supporter of our work in cross-chain settlement research and implementations. We used to build on-top of Ripple and have built services for them that they continue to use today. When we launch our CDP, they will be one of our key partners as we’ll be supporting XRP  as it a great asset in terms of users and liquidity that the Kava platform can use.

 

Cryptodiffer Community

When talking about DeFi space, people think about specific terms such as lending, derivative, stablecoin, user’s credit score and smart contract-based asset management right away. Which specific DeFi product is Kava offering or are you offering all of them?

Stan Press
Head of Marketing

Almost all of the above! As a lending platform, we want to provide all the advantages that DeFi generally offers in a smart, stable, and rewarding system. No requirements around credit-scores though. 🙂

 

Cryptodiffer Community

Is there a plan to increase adoption and awareness among retail traders, people and more specifically among professional asset management with KAVA?

Why do you plan to held IEO on binance during this somewhat bear market condition? Are you not afraid of this could potentially affect KAVA?

Aaron Choi
Head of Business Development

Yes of course, we plan to do continue with doing events and activities to engage with our potential userbase especially as we get closer to launching our CDP platform.  We really do believe that traders, retail and professional, will require services like these at lower costs across different asset types.

You can’t control the market conditions, and definitely not when a bear or bull market happens.  Of course we would love to do our IEO during a bear market (circa 2017 :D) but i really think that right now is a good time for us.  DeFi is something that everyone is starting to understand as a potential gamechanger for crypto and for mass adoption.  And having Binance as our IEO partner has been amazing.  They are very supportive and we are grateful for them to have shown so much passion for what we are working on.  It really validates that our hard work has been on the right track.

 

Cryptodiffer Community

Two  questions. 

 over the space of 45 days, it seems the valuation of the KAVA token went from $.075 to $0.40. What happened in this period of time to increase the valuation so significantly?

Stan Press
Head of Marketing

Sorry for a potentially long answer! 

It is natural to be curious about why arly investors got better pricing and maybe have some fears that they could dump on the market. We can assure you that our investors are in this for the long-term. Private sale rounds are locked up for 1 year. You can compare our release schedule to any other project. We have one of the most restricted circulating supply schedules of any project EVER and its because all our investors are commiting to the long-term success of the project and believe in Kava.

About the pricing itself – it is always a function of traction like for any start-up. When we made our public announcement about the project in June when we were only a 4 man team with just some github code. We could basically run a network with a single node, our own. Which is relatively worthless. I think our pricing of Kava at this time was justified.  We were effectively a seed-stage company without a product or working network.

By July we made severe progress on the development side and the business side. We successful launched our first test net with the help of over 70 validator business partners around the world. We had a world-wide network of hundreds of people supporting us with people and resources at this point and the risk we would fail in launching a working product was much lower. At this point, the Kava project was valued at $25M.  At this point, we had many VCs and investors asking for Kava tokens that we turned away.  We only accepted validators that would help us launch the network.  It was our one and only goal.

Fast forward to today, the IEO price simply reflects the traction and marekt demand for Kava. Our ecosystem is much larger than it was even a month ago. We have support from Ripple, Cosmos, and Binance amongst other large crypto projects.  We have 100+ validators securing our network with very sophisticated high-availability set-ups.  In addtion, our ecosystem partners have built products for Kava – such as block explorers and others are working on native integrations to wallets and exchanges.  Launchpad will be very big for us.  Kava is a system designed to cater to crypto traders and investors and in a matter of days we distributed via Binance Launchpad and put in the hands of 130+ countries and tens of thousands of users overnight. It doesn’t get more DeFi than that.

TLDR – We feel KAVA is undervalued and the liquid supply of tokens is primarily from the IEO so its a safer bet than other IEOs. If the price drops, it will be from the overall market conditions or fellow IEO users rather than private sale investors or team sell-offs.

Cryptodiffer Community

Q:How do you assess the blockchain market in Asia? Where is your target market? 

What is your opinion on the amount of contribution indian community can make to #KAVA ? 

What influence do we have in the crypto industry?

Aaron Choi
Head of Business Development

Well, I’m based in Asia, so I believe the asia market to be the largest crypto market. No just in users, or crypto enthusiasts, or speculators, but also in blockchain companies and ground-breaking technologies.

I’d say my biggest market for sure is China. But there are so many other interesting areas, such as Korea, Indonesia, Vietnam, India, Malaysia.  Singapore is small but seems like a good hub to be as well.  It will be a lot of work for us to penetrate into all of theses markets but with amazing communities like this, we hope to really create more grassroots enthusiasm for Kava.

I think the Indian community is very passionate about crypto.  I would love for us to have a network of staker/validators and groups that support Kava there.  I’m open to any and all ideas on how to grow and increase our presence in any region (particularly Asia for me).  Feel free to contact me 

I think the users in crypto have so much more voice than in any other industry right now.  Just keep on talking to projects directly and let them know what exactly you need to use your crypto.  The successful projects will listen to you and if they build the right products, then their usage will grow.  This is how users need to use the voice they have to make sure the industry builds the correct things that will lead to more adoption

Cryptodiffer Community

Many projects build platforms based on Cosmos’ framework, could you please explain why Cosmos not others? What do you think when your opponent also uses Cosmos?

Stan Press
Head of Marketing

We researched cross-chain settlement and built many products for it over the past 2 years before starting the platform, Kava, that we are debuting on Launchpad. Over the years we saw that the killer use case of crypto was DeFi.  Even in crypto winter, Maker and Compound grew in usage.  It was obvious to us that inorder for crypto to succeed we needed to bring the DeFi services to blockchains outside of Ethereum, such as BTC, XRP, and Binance.

Importantly, Kava is built on the Cosmos-SDK so we have our own security model and not reliant on the roadmap of ethereum.  We can rapidly prototype and roll out new features (coded in GO) and conquer new things more quickly. Cosmos is for interoperable blockchains.  We can only do what we’re doing because we’re built on the SDK. It would be near impossible to do so on a chain like Ethereum.

As for when our competitors use Cosmos, we’re just happy to see other projects on the framework as it does more to increase pie rather than have each of us fighting over our own little territories.

Cryptodiffer Community

1.  By staking USDX we can earn staking rewards, What would be the staking reward rate APR? What algorithm will determine reward rate in the platform since KAVA team cannot fixed it? 

2.  What is the short term and long term goal of KAVA Project?

Aaron Choi
Head of Business Development

Our research points to anywhere between 3-20% returns.  The reward rate is based on a lot of different factors that include how much KAVA is staked over the entire network, how many CDPs are opened and out there, the loan to collateral ratio, and lot of other factors.

Short-term is to make sure our IEO and Mainnet are flawless.  Long-term is to get our CDP platform out.  That platform will be the foundation on which we can build so much more complex derivatives like BTC pegged products, or other crypto derivatives that allow traders to hedge their trading positions.  The possibilites are literally endless.

Cryptodiffer Community

1-what will happen if usres fail to repay the debt plus stability fee?

2-what is the min amount to take lone form kava CDP plateform ?

Aaron Choi
Head of Business Development

If users fail to repay and the loan to collateral ratio dips below the required minimum, then the protocol would close the CDP and take the collateral

While we don’t have a min amount right now, there might be one when we launch our platform.  Also, there might also be practical minimums based on transaction fees.

Cryptodiffer Community

USDX is planned to be issued in Q4 2019. Will USDX be a whole new decentralized stablecoin  by KAVA? What type of stable coin will it be?

Aaron Choi
Head of Business Development

USDX is an algorithmically-stablized fully crypto asset backed stable coin.  We built USDX because we needed a coin that is built on our protocol that is lent out in return for the collateral sent on our platform.

Cryptodiffer Community

What is the use case of kava token and how its diffrent from maker ?

What are the benefits for holding kava token?

What KAVA plans for sustainable development in future? What are the challenges of KAVA in the future?

Stan Press
Head of Marketing

1. The Kava token plays many roles. KAVA is the native staking token of the Kava blockchain and is used for securing the network.  KAVA is delegated to validators, basically professional node operators that run highly-available servers to secure the Kava blockchain. The top 100 validators by weight of staked KAVA earn blockrewards that range from 3-20% APR based on the total amount staked in the network. These rewards are split between the validators and the KAVA holders.

When users of the platform repay their loans, they must a stability fee (a percentage of the loan) in KAVA tokens.  These tokens are burned by the system, effectively deflating the total supply overtime as more users use the CDP system.

KAVA is also the primary token used in governance of the platform.  KAVA token holders can vote on key system parameter changes and upgrades such as what assets to support, how much USDX in total can be loaned by the system, what the debt-to-collateral ratio needs to be, the stability fees, etc. KAVA holders have a very important responsibility to govern the system well.

Lastly, Kava functions as a “Lender of Last Resort” meaning if USDX ever gets undercollateralized because the underlying asset prices drop suddenly and the system manages it poorly, KAVA is inflated in these emergency situations and used to purchase USDX off the market until USDX reaches a state of being over collateralized again.  KAVA holders have incentive to only support the good high quality assets so risk of the system is managed responsibly.

2. KAVA holders earn rewards 3-20% APR paid in KAVA tokens. In addition, KAVA becomes more scarce and valuable as the system is used more and more. Each time a user takes and loan and repays it, they repay part of it in KAVA. Those tokens are burned reducing the overall supply.

Cryptodiffer Community

– Why does Kava choose USDX name but not USDY, USDM, ZUSD, ….? Does it have any special meaning?

– What is the difference between USDX and other stablecoins like: USDT, TUSD, USDC, …?

Aaron Choi
Head of Business Development

We were building USDX when we were still building on the Ripple consensus.  Back then the X stood for XRP.  But now that we’ve moved to Cosmos, we still really liked the name USDX.  It worked out really well since for us now, the X symbolizes any and all of the asset types that our platform can support and the possibilities it will support in the future.

I’ve previously answered to what our stablecoin above in my answers, but we need to have our own stablecoin as our collateral will back this coin for lending.  If we were to use another coin, our platform be not in control of the supply etc, which would be extremely problematic as it could introduce more unintended risks.

Cryptodiffer Community

1. There are many stable coins today and the competition is very fierce, KAVA is a new project, what are the advantages of KAVA that can outperform those stable coins? 

2. In the future, will KAVA develop its own blockchain platform and focus on developing the ecosystem on it? Or will KAVA be supported by existing platforms? #AMA #KAVA

Stan Press
Head of Marketing

1. It’s not so much about outperforming others but more about the functionality it provides our users. That being said, USDX is one of the few stablecoins to be fully backed by crypto-assets.  This means that we do not deal with fiat to back the value, and thus we don’t have some of the issues when it comes to storing fiat funds with banks and custodians.  This also makes our product fully digital and built for the future of crypto growth.

2. We’re already our own blockchain built on the interoperability that the Cosmos SDK offers. We plan to build out more complex products and financial derivatives for crypto users and traders. We have barely scratched the surface in what we can do with DeFi so I can’t predict the future, but we want to build products that are pegged to BTC values so that traders have more leverage purely in crypto.

Cryptodiffer Community

There are 3 core issues prevalent in crypto and blockchain – Security, Interoperability, and Scalability. How does KAVA plan to overcome these issues?

Aaron Choi
Head of Business Development

These are all highly technical problems.  The solution to technical problems is having a smart team and having enough time.  Thankfullly we are blessed to have both of those.  We will have raised capital to last a few years which will give us room to grow and to figure out some of tricky problems there.  For our technical capabilities, our engineering team has studied and worked on scalability, big data, machine learning, risk modeling and fault tolerant consensus algorithms.

 

Cryptodiffer TEAM

Great, it is definitely time to finish, this was an intense AMA with a lot of participants! The recap will be made in two days !

Thank you @stanpress and @a1choi for taking your time, you are very well prepared!

Aaron Choi
Head of Business Development

Thank you everyone for asking us all these questions and participating!  And a huge thank you to CryptoDiffers and Maks for hosting Kava and us.

 

Cryptodiffer TEAM

I wish Kava team succesfully conduct the IEO and good performance upon listing. Keep up good work and I will follow your future progress and recommend to do so everyone who took part today!

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