In the financial world where technological evolution is taking place at a rapid pace, Hover is neck-and-neck with the changing trend. To keep up with the technological changes, and to accommodate those in the realm of decentralized finance, Hover is building new infrastructure. Every new protocol Hover builds sets a new standard or a benchmark in the market.
Hover’s non-custodial liquidity market is built on the Kava EVM ecosystem. In particular, Hover empowers users to rise above market volatility by engaging in permissionless lending and borrowing of digital assets without the involvement of an intermediary.
As such, it meets both, depositors’ and borrowers’ requirements, in the form of yield and leverage respectively. Once tokens are introduced into the market, depositors can enable collateral which will algorithmically allow a loan to be taken out against that deposit.
After a loan is withdrawn, interest begins to accumulate in accordance with the overall demand for that asset. As borrows go up on par with the supplied assets in the pool, interest rates go up. As loans are paid back, rates drop to encourage further borrowing.
The Kava Ecosystem Keeps Pushing Limits
The Kava ecosystem is unique because it enables cross-chain operations and interoperability that is facilitated through the Cosmos network where the protocol is hosted. The Cosmos feature known as ‘zones’ enables users of the Kava lending protocol to deposit a wide array of non-native cryptocurrencies such as Binance Coin (BNB), Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies.
Furthermore, the ecosystem is powered by a fast Tendermint Proof of Stake mechanism which helps the network achieve an impressive block time of 6 seconds. Network performance has impressed many and made them entrust the network. As such, the Kava network has a Total Value Locked (TVL) of $40B as of today.
Kava aims to become the go-to decentralized Layer-1 blockchain integrating the speed and interoperability of Cosmos and the developer power of Ethereum. As such, Kava uses the “Kava Rise” program to allure more protocols. Currently, the Kava ecosystem has more than 100 protocols running on its platform.
The Kava Rise program gives rewards to partner projects based on their contribution to the TVL while encouraging the success of developers through its pioneering TVL-based on-chain rewards program. This initiative offers a substantial $750 to developers.
KAVA, the native token of the Kava network, is a dual-purpose token that is used for network governance and staking. Kava token owners have the right to vote when it comes to system and parameter changes, depending on the amount of KAVA tokens they have.
Hover Focuses on Utility, Participation, and Sustainability
Hover uses a three-token model to foster token utility, promote participation, and achieve long-term sustainability.
Elaborating the ideology behind Hover’s integrated tokenomics and how it addresses today’s challenges, one of Hover’s core contributors, Vincent stated,
When you look at the way most lending market tokenomics work, they emit high volumes of their own token to incentivize higher TVL, which theoretically increases their market share of their protocol which would in turn increase token demand. However in these market conditions – we’ve been seeing that the emissions emitted increase circulating supply, and without ample utility to their token it leads to a downward pressure on token price.
We’ve designed Hover to offer meaningful value to those who actually use the platform. In other words, long-term holders will have meaningful benefits from Hover’s token utility.
As such, Hover’s native token $HOV can be staked in for $esHOV at a 1:1 ratio. The staked, non-transferable token $esHOV, offers rebates on borrowing, lending, and liquidation fees. Not being limited to financial support, it also supports governance voting rights through the Hover Staking Program.
Rebates and protocol emissions received in esHOV can be converted to xHOV at a 1:1 ratio upon completion of KYC for eligibility determination.
Hover is risk-protected, working with an external risk partner who will monitor the market 24/7 to safeguard user funds. Real-time qualitative and quantitative financial data will guide and set Hover’s risk and rate parameters.
Hover Is More Than Just Lending and Borrowing
Hover is working with Lworks, an external DeFi risk management partner, to ensure the security of its customers. Lworks monitors the protocol 24/7 to ensure market stability and safeguard user funds.
Lworks extracts metrics from every transaction on each supported chain, providing valuable insights into the flow of assets through smart contracts and related activity. Their powerful rules engine and models leverage this data to create customizable rules and triggers based on specific metrics, driving deeper insights, more effective mitigation strategies, and faster.
The protocol’s risk strategy was engineered by a Ph.D. data scientist from Columbia University with years of experience specifically in the financial risk sector.
Rome Blockchain Labs (RBL) is a global, private blockchain development firm that specializes in launching DeFi and blockchain protocols. They are the tech team behind network-leading lending protocols such as BENQI, Moonwell, and the SAVAX liquid staking system. With the help of RBL’s trading bot, which no market has seen before, Hover supports advanced algorithmic trading. Furthermore, Hover’s close advisor and RBL’s CEO, Alexander Szul, is supporting the launch and go-to-market of the Hover protocol.
The Metareal team (previously Block72) served as the Asia marketing partner for Solana, Polygon (MATIC), and Brave Browser. They are working with the Hover team to engage Korean and Mandarin-speaking markets across parts of Asia. Metarea’s support includes media translation, KOL management, community management, and more.
Hover is working with the boutique public relations agency, VComms, for all media and communications work. A technology-focused firm, their releases have already landed one of Hover’s advisors an interview on Grit Daily and published announcements in venues such as Yahoo Finance.
Hover is more than lending and borrowing as it focuses on security, provides advanced algorithmic trading bots, and caters to different parts of the world. Built on the Kava ecosystem, Hover runs on a reliable platform that is powered by a fast Tendermint Proof of Stake mechanism. Unlike other tokens which only give governance or the right to vote for the owner, Hover uses a three-token model to foster token utility, promote participation, and achieve long-term sustainability.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
