How Can I Earn Money on Kava
There are several ways you can earn money on Kava with your digital assets. We have listed the top ways below.
Staking
Like most Proof of Stake (PoS) blockchains, KAVA holders can ‘stake’ their KAVA by either running a validator node themselves or by ‘bonding’ their tokens to a third party that is running a node. Bonding temporarily locks in your coins for a 21-day. Learn more. A list of validators can be found here.
Borrowing
Use your assets as collateral to borrow other assets, then using those to earn returns by trading or with other DeFi pursuits. Users can borrow USDX on Kava and other assets on Hard.
Kava and Hard protocols let users take out loans in a decentralized fashion. This democratizes finance by removing the barrier to entry, lowering friction, and removing gatekeepers.
Lending
Supply assets to the Hard Protocol and automatically earn rewards in HARD tokens.
The Kava and Hard protocols let users turn their idle cryptocurrencies into interest-producing assets safely and transparently.
Rewards
Deposit assets, open a CDP to mint USDX, and earn KAVA rewards. Available assets include: BNB, BTCB, BUSD-A, BUSD-B, XRPB, KAVA, and HARD.
Supply assets to the Hard Protocol and earn HARD rewards. Guide.
Available assets include: USDX, KAVA, HARD, BNB, BUSD, BTCB, and XRPB.
KAVA rewards have a vesting period of 21 days. HARD rewards have a vesting period of 1 month or 12 months. If you choose 12 months, the reward amount increases.
Users can earn rewards on both platforms by:
– Supplying an asset to Hard.
– Borrowing against that asset.
– Supplying the borrowed asset to Kava
– Minting USDX
– Supplying that minted USDX to Hard.
Tips
Keep a small amount of KAVA in your wallet in case you want to include a fee.
Avoid having a CDP liquidated by monitoring the collateral value, debt value, and liquidation price. If the collateral value drops below the liquidation price, your position will be liquidated. Assets from liquidated CDP’s are put up for auction. If that happens, the auction typically takes 8-24 hours and you can expect ~⅓ of the collateral back (not guaranteed).
Some exchanges (like Binance) require a memo field for cross-chain transfers. If a memo is not included, those funds can be lost.
As the protocols scale, numerous rewards are available to early adopters. DeFi applications – developers are encouraged to build new apps, integrations, and protocols in the Kava ecosystem for new business use cases.
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