The Native And Non-Native Assets Supported By The Kava Blockchain
Are you wanting to know which digital assets can be used on the Kava chain? Then check out the information below.
Native assets are tokens that originate on the Kava Chain. These currently include KAVA, HARD, and USDX.
KAVA and HARD are governance tokens, meaning holders can vote on the rules of the protocols. KAVA is also used as a Proof of Stake staking asset, which ensures the finality and safety of loans on the protocol and also acts as the ‘lender of last resort’ in certain situations. USDX is a stable coin loosely pegged to the US Dollar. It is minted when a Kava CDP is opened. The exact value of USDX is determined by market forces.
Other tokens can also be issued on the Kava Chain. These non-native asset tokens are often used to “wrap”, “tokenize,” or represent assets on other chains. For example:
Binance Coin (BNB) can be represented as a token on Kava Chain. During a cross-chain swap, BNB(Kava) coins are created or destroyed (burned) on Kava Chain, and frozen/unfrozen on Binance Chain.
Assets from other blockchains are considered non-native assets. This includes coins from other Cosmos ecosystem blockchains, which can connect to the Kava Chain through protocols like Cosmos IBC.
Be aware that KAVA (native) has been tokenized on other blockchains, namely Binance Chain. KAVA (BEP-2) is a token that exists solely on Binance Chain. Do not send KAVA (BEP2) directly to the Kava Chain.
BTCB represents BTC which has been tokenized on Binance Chain. This BNB token has also been tokenized on KAVA, making BTCB (Kava) a doubly tokenized representation of BTC.
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