Cross-chain, decentralized-finance (DeFi) platform Kava Labs today launched its mainnet, making Kava the first DeFi platform in the Cosmos ecosystem.

This means that the Kava governance structure and its native KAVA token are now live, ahead of the launch of the upcoming Kava CDP module. When the CDP module launches, users can collateralize loans against a basket of cryptocurrencies, including Bitcoin (BTC), Ripple (XRP), Cosmos (ATOM) and Binance Coin (BNB). 

Kava will then use price oracles to automatically auction “at-risk” collateralized debt positions to maintain the peg of its upcoming stablecoin, USDX, to the U.S. dollar. 

Kava operates as a decentralized autonomous organization (DAO). KAVA tokens are used as transaction fees, and rewarded to validators maintaining the network. Staking KAVA entitles holders to voting rights; voters will be able to determine expansion decisions, new features, and support for new crypto assets. 

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Kava raised $3 million in an IEO (Initial Exchange Offering) on Binance Launchpad two weeks before the mainnet launch. It was the first DeFi project to receive backing from Binance Launchpad. 

Binance Founder and CEO, Changpeng Zhao, said, “We believe Kava can become the leading DeFi platform offering lending and stable coins to a wide array of major crypto assets including BNB and offer new trustless leverage and hedging options for users of the Binance DEX.”