SAN FRANCISCO, CA – February 18, 2021 – Today, the Cosmos blockchain released its Inter-Blockchain Communication (IBC) protocol so that Cosmos will bridge the gap to other blockchains, allowing for unprecedented value and information transfers over decentralized networks. As the native DeFi solution and DeFi hub of Cosmos, this upgrade will bring tremendous potential to Kava upon the integration of IBC.
Billy Rennekamp, BOM and Grants Manager of the Interchain Foundation, commented: “Kava’s adoption of IBC will bring key financial building blocks to the Interchain. We’re very excited to see the first economic flows between Kava, the Cosmos Hub, and a wave of IBC chains coming online this year.”
As the primary decentralized finance protocol to support the Cosmos network, Kava has allowed users to earn rewards on cryptocurrency deposits like BNB, XRP, and others. The Kava team works hard to establish decentralized bridges to Bitcoin and Ethereum and to improve its security measures.
Furthermore, Kava has brought Chainlink’s price oracle technology to Cosmos as the exclusive provider, bridging access to price feed data to the 100+ blockchains within the ecosystem. Following the launch of IBC, Kava will strengthen its position at the center of decentralized finance for Cosmos-based blockchains and beyond.
Faster encoding and quicker transactions are just a couple of the benefits provided by the Cosmos Stargate upgrade. For nodes, this means upgrade processes are cut down from weeks to mere hours. Letting all nodes upgrade faster more rapidly makes it easier for the Kava developers to introduce new features and options. This will become more apparent when Kava leverages IBC’s potential.
As one of the few DeFi projects to undergo constant auditing, Kava is a rare breed in an industry where security is often an afterthought. Even the smallest code change will undergo a peer review to ensure the protocol will not suffer from hacks or other wrongdoings.
Kava Labs CEO and Founder Brian Kerr state: “With over $225M in collateral deposits on Kava and almost $1B in assets managed by Kava, we are very cautious with anything we add to our codebase, which rivals in size that of the Cosmos Hub (ATOM) itself. Before the adoption of IBC can happen, we need to do a robust set of internal testing and review to ensure it interacts with the Kava blockchain as intended. Once this is performed, Kava is excited to release the integration of IBC with its next major upgrade.”
Thanks to the Inter-Blockchain Communication protocol, Kava is in a prime position to move up the decentralized finance rankings in the coming months. Cross-chain and cross-asset support is a rarity in Defi today, despite hundreds of billions in liquidity waiting to be tapped. Blockchain interoperability is a fundamental milestone toward achieving purpose-built digital ledgers capable of interacting with one another.
Kava plans to introduce other changes in the coming months. Releasing the HARD Protocol Version 2 will occur by the end of February 2021, including more complex mechanisms for borrowing with variable rates. Later this year, users can benefit from an Autonomous Market Making (AMM) service.
As Kava remains the largest Cosmos-SDK blockchain based on Assets Under Management, the network is likely to become a Tier 1 Hub once the IBC protocol goes live. Moreover, it will remain one of the top applications to bring valuable services to the blockchain community.