Emerging today is Injective's brand new collaboration with Kava, one of the largest DeFi lending platforms on Cosmos. Kava is bringing its rapidly growing lending facility to Injective's innovative layer-2 decentralized derivatives exchange, unlocking a host of new possibilities to traders globally.
Given that Injective currently provide an entirely open-source exchange infrastructure, Kava’s assets can now be used in a variety of new functions not possible before on other platforms. This will help expand the use cases of Kava’s lending facility while simultaneously allowing users of Injective DEX to trade new asset types and interact with new DeFi networks given Injective’s unique cross-chain capabilities.
As members of the Binance ecosystem, the communities at Kava and Injective have aligned closely on a variety of exciting challenges in DeFi. The past few months have seen impressive development efforts and high levels of adoption with respect to decentralized lending. Contributors across the board share a common vision regarding the expansion and accessibility of DeFi use.
Since both Injective and Kava are built with the Cosmos SDK, both will be able to seamlessly integrate with one another via Inter-Blockchain Communication (IBC). The current plan is to leverage the IBC protocol to connect with Kava to solve cross-chain interactions effectively as well as use the interoperability to increase the use cases of Kava via Injective's decentralized derivatives.
The integration will also enable Kava and Injective Protocol to exchange Chainlink oracle data, services, as well as on-chain and off-chain resources that will help increase derivative offerings further. The goal is to also enable new types of synthetic assets and novel derivative products to be traded on the Injective DEX with the help of Kava.
Kava CEO Brain Kerr has been a strong proponent of Injective for some time and had this to say when asked about the new partnership:
“It’s wonderful to have the opportunity to collaborate with a fellow Binance ecosystem project in the area of DeFi. Injective Protocol is furthering the DEX and derivative trading experience in a decentralized fashion while addressing issues such as front-running. Kava’s lending facility, USDX stablecoin, and other financial services will enable Injective Protocol to deliver even better experiences to their users.”
Kava will be a great addition to the Injective exchange as both communities delve into new forms of decentralized derivatives markets and further explore cross-chain yield generation. Both Kava and Injective contributors will work together closely in the long-run to facilitate the mass adoption of DeFi.
Kava is a multi-asset DeFi lending platform that offers stablecoins, loans, and other financial services for users of major cryptocurrency assets. Users can collateralize their crypto assets in exchange for Kava’s stablecoin, USDX which offers superior yields relative to traditional alternatives such as checking and savings accounts.
Injective is the first cross-chain protocol built for decentralized finance applications. On the Injective exchange, anyone can access, create, and trade unlimited DeFi markets such as futures and perpetuals. Developers can also build cross-chain Ethereum-compatible projects that are lightning fast and achieve instant transaction finality. Injective is backed by a prominent group of stakeholders including Binance, Pantera Capital and Mark Cuban.