The Kava platform is built on the Cosmos blockchain and offers a cross-chain DeFi lending platform operating similar to a decentralised bank. The platform provides users with a broad range of financial services, such as allowing them to deposit various cryptocurrencies for earning yields and to borrow the Kava network’s USDX stablecoins which are pegged to the US dollar. Network users can borrow USDX tokens by deposits of collateral, which are used by the network. Failed collateralised debt positions are sent to the network’s auction module for sale. The project’s other native token is the KAVA Token, a utility token that functions as a reserve currency if the system is not collateralised sufficiently, as well as for governance processes in the network.