Advancing the DeFi ecosystem will require cross-asset support. Kava Labs are intent on making this happen, by rolling out multiple products. Harvest.io is the first cross-chain money market with significant potential.
Harvest.io Changes the Game
Until now, there have been very few solutions capable of supporting assets not native to the blockchain they are built on. Kava aims to change this narrative, although it will be a tough order of business. Launching Harvest.io marks an important milestone in the process.
Building a cross-chain money market from scratch is no easy feat. Harvest allows users to lend, borrow, and earn through a variety of assets. The list includes KAVA, Bitcoin, XRP, BNB, BUSD, and USDX. This latter stablecoin can be farmed with BNB through Kava’s platform on the Binance exchange.
Users who supply digital assets will be able to earn interest as long as their funds remain locked. Customers looking to borrow can do so by providing their existing digital assets as collateral. Both suppliers and borrowers earn HARD tokens, the governance token of Harvest.
How Does it Work?
Under the hood, Harvest is an application built on Kava’s native ecosystem. It will use existing validators for security and bridges for cross-chain asset transfers. All price-related data will be taken care of by partner services, such as decentralized ChainLink oracles.
In version 1 of the platform, supply-side deposits will be enabled for all mentioned assets. In version two, borrow functionality will be integrated. During this stage, the governance capabilities of HARD will be expanded upon.
It is also worth noting that Harvest will access any asset on the Kava blockchain first. Once the Kava-4 “Gateway” upgrade hits the mainnet, support for BTC, XRP, and others will be integrated. It is an interesting approach, yet one that hinges on the Kava-4 upgrade.
A Brief Roadmap for Kava
Testing of Harvest v1 will occur on the Testnet as of September 21st, Three weeks later, the “live” version will become accessible. It is expected the Kava-4 upgrade will go live on this date as well. It marks the distribution of HARD, as well as supply-side deposits.
Version two Harvest.io is slated to go live on December 30. It expands the overall governance, introduces borrowing of assets- including LINK – as well as incentives for borrowing funds. An important first step toward unlocking everything the Kava ecosystem has to offer.