Kava Releases a Proposal for Harvest.io the World’s First Cross-Chain Money Market
Kava, the multi-asset DeFi platform, has released a proposal for the first cross-chain money market to be hosted within its Cosmos SDK built blockchain. The application which is dubbed ‘Harvest’ will enable Kava blockchain users to further capitalize on DeFi opportunities through its lending and borrowing functions.
What’s been a bullish past few months, has seen innovations pivot toward decentralization and open architecture. Harvest, set to debut on Kava’s blockchain, bases its fundamentals on a similar infrastructure, with an end goal of decentralizing financial services. The platform will allow anyone to lend and borrow digital assets including BTC, XRP, BNB, BUSD, KAVA and USDX for an interest in return.
Harvest users who borrow or lend on the application will be paid out their interest plus the application’s governance token ‘HARD’. Version 1 of the software will provide Supply functionality and Version 2 is will provide. Borrow functionality and expanded governance.
The Harvest DeFi Lending Cross-Chain Architecture
Harvest will be the first of many applications that will eventually leverage Kava’s blockchain security for DeFi products. With the innovation majorly deriving its fundamentals from Kava, it will automatically integrate other functions such as Kava’s price-reference data from Chainlink oracles and the underlying bridges to facilitate cross-chain asset transfers.
This cross-chain architecture will play a pivotal role in giving Harvest access to any digital assets within the Kava blockchain network. The project is set to capitalize on the Kava-4 Mainnet upgrade where an expansion of the BEP3 Bridge will feature the support of BTC, BUSD and XRP amongst other digital assets. Ideally, all these digital assets will eventually be supported within the Harvest money market alongside Kava native assets like USDX KAVA and HARD.
The Harvest application is a decentralized platform that’s accessible by anyone anywhere. This open and permissionless platform will facilitate integrations with financial market stakeholders in niches not limited to FinTech apps, Exchanges, and financial institutions. This category of financial service providers will be able to offer Harvest’s earning and borrowing opportunities, directly to their clients.
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Recent DeFi trends have shown that a governance token is necessary to facilitate the growth of projects within this industry. Likewise, the Harvest governance token ‘HARD’ will harmonize decentralized activities within its lending and borrowing ecosystem. This token will enable Harvest users who hold it to manage key metrics such as the digital assets to be featured and reward distribution within the network.
In addition, HARD tokens will incentivize user participation and active governance on the Harvest application. Suppliers and Borrows stand to benefit by having more voice in the management of this Kava-built DeFi application. Harvest will also distribute 20% of the total amount of HARD tokens to Kava stakers over the next few years for providing security and other base-layer services to the Harvest application.
Brian Kerr, CEO and Co-Founder of Kava stated, “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.”
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