Kava Wire releases a new report on Kava projections for this month. We explain why the stablecoin has recently dipped below its one-dollar peg.
Are you thinking of using Kava? Before you do, you have to know what it is and how it’s been doing recently in the blockchain decentralized market.
Experts warned of a possible continuous downward trend for USDX as it recently lost its parity with the US dollar, details the new report by Kava Wire. In a recent trading, the stablecoin dipped to almost 0.55, and is now being exchanged at $0.65.
The announcement has raised the eyebrows of many DeFi analysts, as they determine what may have caused USDX to lose its dollar parity. They suggest that the dip could be related to the recent collapse of UST – the exposure of USDX to UST causing a domino effect. In fact, the May 2022 Kava Wire report cites Scott Stuart, co-founder and CEO of Kava Labs, mentioning that the liquidations of UST probably contributed to USDX dislocating from the one-dollar peg.
Kava is a next-generation decentralized lending platform that has shifted the way you operate within the blockchain. Offering a unique lending strategy, Kava provides an extensive array of products, including collateralized loans and stablecoins.
It was developed by blockchain enthusiasts who wanted to streamline the decentralized lending sector through the integration of a variety of proprietary technologies. Similar to all products within the blockchain, the main advantage of Kava was its transparency to all its users – those who wish to file for a loan could do so with peace of mind that their loans were visible to everyone in the system.
USDX is the stablecoin for the Kava network. This financial instrument is what you receive and pay back your loans in. To further strengthen its stability, USDX used UST as a collateral asset, which may explain its recent downward trend. That said, Stuart has stated that because the two are different assets, USDX is anticipated to go back to its peg after a few months.
We are an online digital resource for everything cryptocurrency-related. We place a focus on Kava Wire and USDX. Please visit our site from time to time as we constantly release new reports on the token and other stablecoins.
Be aware of what is happening in the DeFi industry today. We help you understand blockchain technology better. Go to https://kavawire.com so you can learn more.
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.