Kava Network partners with leading Blue Chip DeFi application SushiSwap1 Jun 2022
Kava Network’s new partnership with SushiSwap, one of the leading Blue Chip DeFi application ecosystems by TVL, is a great move in the expansion of its utility in the network.
According to the announcement, the collaboration between the two will be aimed at providing a new suite of DeFi products to the market participants as well as provide opportunities for fast and efficient yield farming.
In the announcement, the crypto projects noted that they will allocate $14 worth of KAVA and SUSHI tokens as daily rewards for new members who will be joining the DeFi platform.
In addition, the Kava Network will be launching a $750 million incentive program that will allow Sushi developers to create new applications on the network.
Kava Labs CEO, Scott Stuart, noted that the fund will help “press the entire ecosystem forward.”
Market participants seem to have received the news positively pushing for the KAVA price to rally.
What is Kava Networks?
Kava Network is a layer-1 blockchain that combines the interoperability of Cosmos blockchain with the developer power of Ethereum blockchain to create a developer-optimized co-chain architecture.
The Ethereum part of the co-chain allows for the support of EVM smart contracts while the Cosmos part of the co-chain allows for the use of the lightning-fast Tendermint consensus engine and the Inter Blockchain Communication Protocol (IBC).
The two co-chains are connected by a translator module that enables the communication between them.
The native token of Kava Network is called KAVA and it is used both as a governance and utility token. Validators also stake the KAVA token or delegate it to validator nodes. Both stakers and delegators earn a 37.5% reward.
What is SushiSwap?
SushiSwap is an automated market maker (AMM) and has become an increasingly popular tool among DeFi participants. It was launched in September 20202 as a fork of another AMM called UniSwap.
In a nutshell, AMMs are decentralized crypto exchanges that use smart contracts to create markets to allow users to swap one cryptocurrency for another.
The native token of SushiSwap is called SUSHI, which is used to reward participants.