Kava Labs has announced the launch of a new project, Kava Swap. It aims to become the first production-ready cross-chain liquidity hub. The hub will be for all decentralized finance (DeFi) and financial services. By design, Kava Swap will enable the aggregation of capital and the deployment across many different blockchains.
Kava Swap was created as a cross-chain Autonomous Market Making (AMM) protocol that gives users a method of swapping assets on different blockchains. Capital will be deployed into market-making pools to obtain returns.
A wider range of options
The new protocol from Kava will allow liquidity providers and traders to swap natively between the world’s biggest digital assets. CEO of Kava Labs, Brian Kerr explained that “in traditional finance, market maker returns are reserved for only the most sophisticated trading firms. AMMs enable users of all kinds to participate.”
“This increases the liquidity of markets while empowering even the smallest of users. The next logical step is expanding AMM interoperability in order to give traders and LPs a wider range of options and opportunities,” Kerr added.
Kava Labs has been growing steadily all year since nearly bottoming out in November 2020. After the scare, Kava Swap hit an all-time high of $8.28 on April 6. Since then, KAVA dipped as low as $4.10, but is now trading at $6.24 as of this writing.
Recently, Open DeFi unveiled plans for a multi-chain decentralized autonomous organization (DAO) to encompass the entire DeFi ecosystem. The project’s goal is “to develop a truly integrated multi-chain DeFi ecosystem that will open up liquid markets and establish a new operating system for finance.”
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