Kava welcomes mainstream Defi users with a $ 185 million ignition fund

With funding from seed rounds, Kava launches the $ 185 million Ignition Fund, which aims to advance high quality DeFi projects and scale to the “wave of mainstream DeFi users.”

In one notification Today (September 22nd), Kava announced that it is entering the next phase of growth with the launch of the Kava Ecosystem.

Kava adds that selected ecosystem projects will benefit from a Layer 1 architecture, high scalability and organizational security. Only three protocols run on Kava, including Hard Protocol, with a total value of $ 2.1 billion locked down (TVL), over 280,000 users, and $ 1.8 billion for cross-chain transactions. ).

DeFi for the mainstream market

Kava enables users to borrow money by locking collateral in exchange for a dollar-pegged USDX stablecoin. It runs on the Cosmos blockchain and processes transactions from other blockchains like Bitcoin and Ethereum.

It claims to have a basic approach to scaling when compared to other DeFi protocols and networks, offering up to 10,000 transactions per second. Kava aims to fill the void to facilitate mainstream adoption. CEO Scott Stuart explains:

“DeFi currently offers a great opportunity to be the first to close the gap between early adopters and the untapped mainstream market. The Ignition Foundation will be the first to bring Kava to the finish line. “

There is also a SAFU fund to protect user resources that provides the extra security needed for general adoption.

In late August, Kava Labs launched a cross-chain liquidity hub for DeFi called Kava Swap. Automated market makers (AMMs) aggregate collateral from other chains and offer incentives to increase liquidity. It has been audited by the blockchain security firm CertiK.

Price reaction from KAVA

Kava’s token of the same name did not respond well to the news, posting a 6.3% drop on the day, in line with the broader market decline. At press time, KAVA is trading at $ 4.82.

KAVA price table | Source: Tradingview

KAVA hit an all-time high (ATH) of $ 9.12 on August 30, but fell nearly in half three weeks later. There are 91 million KAVA in circulation for a market cap of $ 441 million, which is outside the top 100.

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