SifChain Finance: Cosmos & Cardano: A New Era of Interoperability
Sifchain is applying for a grant to connect Cardano to the Cosmos ecosystem through our Peggy 2.0 bridge. Peggy 2.0 will be our latest advancement in cross-chain bridge technology and would serve as the seminal bridge deployment between Cosmos and Cardano (via its EVM-compatible layer).
The Cosmos-Cardano bridge powered by Peggy 2.0 and Sifchain will deliver never-before-seen network effects that will scale the reach and adoption of both families of blockchains.
Connecting Cosmos & Cardano
Cosmos and Cardano share common goals around research-backed development, community-driven applications, and global accessibility of blockchain-based solutions, with interoperability at heart.
The Peggy 2.0 bridge will unlock new cross-chain opportunities between these two ecosystems and offer new solutions to existing problems such as access to decentralised governance protocols for growth, new liquidity markets, token-based economies, and much more. In addition, the productive interaction between the vibrant communities of each side, Cosmonauts and the Cardano Community, holds the potential to set new and innovative socioeconomic relations and even cross-chain standards for better interoperability.
Interoperability & Mutual Expansion
One of the core tenets of Cosmos is interoperability and as such, it is popularly dubbed the ‘internet of blockchains’ in the cryptocurrency community. To that end, Cosmos-native chains have the inherent functionality to utilize the Inter-Blockchain Communication (IBC) system that allows for seamless asset transfers and data messaging between IBC enabled chains.
A bridge that connects Cardano’s EVM-compatible layers to Cosmos effectively connects said EVM environment to an enormous ecosystem of chains, dApps, assets, and utilities.
A clear commonality between the Cardano and Cosmos worlds is their commitment to eco-friendly and efficient methods to secure their networks through the use Proof-of-Stake technology. With that said, the Cosmos ecosystem would benefit from a connection to Cardano in many ways.
The Cardano community is well-known as one of the most active, vibrant, and committed communities in the cryptocurrency space. Their on-chain organizational and governance structures are well-established and continuously evolving with a focus on providing decentralised tools, solutions, and opportunities that are accessible to millions of people across the globe.
With a Cosmos <> Cardano bridge, more projects from Cosmos could propose ideas and qualify for funding assistance via this governance on Cardano. This helps solve major problems for many Cosmos projects, namely the cost of development and the lack of similar governance and open-access funding structures in the Cosmos ecosystem.
To know more: https://medium.com/sifchain-finance/cosmos-cardano-a-new-era-of-interoperability-568def097539
Learn more about Kava Lend and some basic strategies for maximizing earnings.
Kava (kava.io) is a secure, lightning-fast Layer-1 blockchain that combines the developer power of Ethereum with the speed and interoperability of Cosmos in a single, scalable network.
Kava Lend is a decentralized money market that allows you to lend assets that could be borrowed by other users or vice-versus.
Users who supply an asset as collateral will earn interest as borrowers pay interest back to the suppliers. Suppliers also receive $KAVA and $HARD rewards.
Lending Assets to Earn Interest and Rewards
Certain assets like USDX and ATOM also receive KAVA rewards. Suppliers also receive a portion of interest collected from borrowers.
Simply supplying assets to Lend is one of the easiest and safest ways to earn with crypto, as you’re not at risk of impermanent loss, and there’s no need to provide an asset pair, compared to DEXs like Pancake Swap, Osmosis, and Kava Swap.
Borrowing Assets and Managing Your Position
To borrow on Kava Lend, users must first supply assets as collateral.
All collateral assets have a loan-to-value ratio of 50% except for USDX, which has a loan-to-value ratio of 25%.
Collateral on Lend is managed as a single lump sum position, so supplying multiple collateral assets can help stabilize your leverage should you choose to borrow against your supplied collateral. With a diverse set of collateral assets, the other assets can help maintain your overall collateral value if one asset price falls.
Borrow Limit Ratio and Liquidation Mechanics
Based on your collateral, the borrow limit ratio will display the maximum amount you can borrow and compare that to the amount you are currently borrowing.
Both sides of this ratio can change based on the price of your collateral and the price of your assets borrowed.
When borrowing assets on Lend, it’s recommended to over-collateralize your loan, meaning you maintain a borrow limit ratio of 50% or less.
When liquidated, a portion of your supplied assets is sold off at auction to reclaim the difference in the value of borrowed vs. collateral assets plus a 7.5% liquidation penalty.
To learn more about liquidation on Kava Mint and Lend, click here.
Basic Earning Strategies with Lend
The risk level when supplying to Kava Lend is very low. Users are not subject to any impermanent loss and maintain 100% ownership of their assets.
By supplying, users earn more of the asset they supply based on interest fees paid by borrowers and earn HARD token rewards.
The risk Level for leveraging assets in Kava Lend is moderate depending on the amount borrowed compared to the collateral supplied.
A solid strategy for Kava Lend is to supply multiple blue-chip assets such as ATOM, BTCB, and BNB, then borrow Kava’s stablecoin, USDX.
Shorting an Asset
The risk level with shorting assets on Kava Lend is high since you’re leveraging your assets to try and time the market.
The risk is that if the price of the asset goes up instead of down, it’ll cost more to swap back for your borrowed asset and as the price of that borrowed asset raises, it can push the borrowed amount side of the borrow limit ratio. Using a declining asset as collateral while borrowing a raising asset creates the greatest liquidation risk.
There are Many Ways to Earn with Kava Lend.
This article reviewed Kava Lend, how to borrow assets and manage your position, and the Borrow Limit Ratio and Liquidation Mechanics. You then learned about a few basic strategies to earn with Lend.
Disclaimer: This content is provided for informational purposes only and should not be relied upon as legal, business, investment, or tax advice. You should consult your advisers as to those matters.
Serokell is a software research and development company, focused on high complexity tasks in the area of computer science.
Our team is composed of developers, designers, engineers, computer scientists, and mathematicians, all to help you realize your vision.
We use functional programming to write robust code that works anywhere, anytime.
Initially, we worked with StakerDAO to implement the STKR governance token a monitoring app on Tezos. After that, we moved to BLND token and implemented a set of Ethereum contracts for holding BLND and performing buyback with them.
We also implemented a web app to run the buyback process.
After that, we designed and implemented the Bridge application and associated set of contracts that allow exchanging BLND and wXTZ tokens between Ethereum and Tezos.
We are working on Bridge backend support for ALgorand now.
Rand Labs is a blockchain development lab specialized in Algorand technology.
At Rand Labs we have developed specialized expertise in blockchain technology. Through 8 years of experience, we have worked closely with all major blockchain protocols and have garnered valuable experience in the industry that helps us deliver the maximum quality in our products and those of our partners.
We spend years training and advancing our team members' skills by facing ever more complex technical challenges in the blockchain space. Having helped and participated in the development of many of the most popular blockchain products in the world since 2013, we are in the capacity to deliver quality solutions regardless of the difficulty of the problem.
Despite having built numerous blockchain products and consensus upgrades from scratch, we believe a business-oriented acumen is as important in delivering maximum product-market fit. With our long history in the industry, we have developed a valuable network of relationships that is available to our partners. Additionally, The Rand Labs management team has been very active as investors and advisors in the space. We have invested in and advised very successful projects. As important, we have seen many projects fail which allowed us to learn valuable insights from those failures.
Product DevelopmentAlgorand Smart Contract development and auditsBackend developmentInfrastructureDev ops UX UI
Rand Labs has always been a fully remote company, way before the impacts created by COVID. We believe this has allowed our company to operate completely crypto native, including payroll, corporate structure, and revenue. We feel that by operating this way, every individual in our team is positioned to deliver the best products and solutions of this industry.
Staker Services provides technical, business and operation services for the cross-chain era. The Operations team specialised in the DeFi ecosystem, with experience in launching products across chains - from Ethereum to Tezos, Algorand, Polkadot and more.
"ChainSafe Systems is a blockchain research & development firm with a focus on building infrastructure for Web3. We are actively contributing to the Ethereum, Ethereum Classic, Cosmos, Polkadot, and Filecoin ecosystems and are open to contributing to other Web3 ecosystems where we see merit. Feel free to visit our website or email [email protected] with any inquiries.”