Users can collateralize their cryptocurrencies using Kava's multi-collateral CDP system. Kava has been built using Tendermint and is planning to become the go-to DeFi platform for the Cosmos ecosystem. Being a validator on the Cosmos Hub, we are excited to support Kava and help expand the DeFi space.
Frequently Asked Questions
Here are answers to some of the questions our community members have asked us. Don't hesitate to reach out to us if you still have additional questions.
Kava is a DeFi platform enabling users to collateralize their assets using Kava's multi-collateral CDP system. Kava launched on November 14th, 2019. To learn more, please see their introduction slides.
New blocks on Kava are proposed by validators. Validators typically have technical capabilities to put together a secure infrastructure that will be online 24/7 so that Kava runs seamlessly.
Not everyone is able to do this, and so they can participate indirectly by delegating the tokens they have to a validator. In a sense, validators are running a service for delegators. Validators would typically charge a fee to cover their operational costs.
Once you delegate KAVA, you are helping secure the network. For assisting in this, you get part of the rewards provided by the protocol. If you are planning to hold on to KAVA for some time, delegating will help you accumulate more KAVA while contributing to the health of the network.
You are not giving away ownership of KAVA by delegating. We will never have the ability to move your KAVA as a validator.
Kava penalizes any validator that misses too many blocks or double signs a block by slashing the staked amount on that validator. We have our own capital on the line, so we are fully incentivized to do our best to prevent such events. However, delegators must be aware that slashing risk will always exist.
We charge 10% on the block rewards received by our delegators. For example, if a delegator receives 100 KAVA as a reward, stake.fish will receive 10 KAVA while the delegator will get 90 KAVA. We offer one of the lowest fees of the strong proven validators.
Un-delegating (or unbonding or unstaking) can be done anytime. However, it will take approximately 3 weeks for your KAVA to undelegate and become transferable.
If you have any questions about staking or our validator services, please do not hesitate to reach out to us. We are happy to talk with anyone and help navigate community members through this exciting new ecosystem.Get in Touch