Kava’s USDT Integrated by Injective Into its Perpetuals Trading
Injective, a Cosmos Layer-1 blockchain designed to power next-generation DeFi applications, has selected Kava Chain‘s Native USDT for their perpetuals trading. Kava Chain leverages Ethereum’s developer-centric design and the speed and operability of the Cosmos blockchain to deliver a secure and fast Layer-1 blockchain.
This collaboration employs the best of Kava Chain’s capabilities with Injective’s DeFi acumen, bringing multiple benefits to users on both platforms. Some of the key benefits expected include Enhanced Trading Opportunities, Improved Liquidity, and Cross-Chain Flexibility.
Perpetuals contracts (or Perps) are contracts pegged to the price movement of underlying assets (mostly crypto), with no expiry date and at a specified funding rate. The funding rate in perpetuals refers periodic payments between short and long perps contracts, depending on the current spot market price. Perpetuals are similar to futures contracts, with the key difference being that they do not have an expiry date and have a funding rate. Also, perps are typically associated with crypto assets.
A disruptive moment for DeFi?
Injective is an interoperable L1 blockchain for building Web3 finance decentralised applications, and it provides developers with powerful plug-and-play modules for building dApps. According to Eric Chen, the Co-Founder and CEO of Injective Labs, the Injective ecosystem stands to benefit immensely as a result of stable asset interoperability. “USDT stands as a cornerstone within the broader crypto industry, and the extension of Kava’s USDT offering will serve as a major milestone for the community,” he said.
With stable asset interoperability at the core of the next revolution in DeFi, the choice of Kava Chain’s native USDT for Perps Trading will ensure that users experience the best of Kava and Injective. This will ultimately drive innovation in DeFi and ease access for the masses, resulting in significant growth in DeFi opportunities for traders, investors, and developers.
“We are excited to offer our users the powerful tools and capabilities that Injective brings to the table,” said Scott Stuart, Co-Founder and CEO of Kava Labs.
Tether integrated USDt natively on Cosmos in July 2023, using the Kava Chain as a hub. This has enhanced accessibility to DeFi and brought greater financial stability to the Cosmos ecosystem, for the benefit of users and developers.
Osmosis was the first tier 1 Cosmos protocol to integrate Kava’s native USDt, and Injective is the 2nd one to do so. Ultimately, the aim is to establish an efficient mechanism to streamline and enhance stablecoin liquidity provision and transfer between the Cosmos and Ethereum ecosystems.