Kava Labs' new DeFi protocol, called Harvest, will support XRP staking. At the moment, ETH is the most widely staked token, with more than $9 billion held in DeFi platforms. XRP is widely owned, now it can be used in the DeFi economy via Harvest. Participants will earn the HARD governance token, which empowers the community of users directly.
Brian Kerr, the CEO of Kava, commented,
“Harvest is the first of what will be many applications that utilize the Kava blockchain’s security, price feed module, and cross-chain functionality to provide open and decentralized financial services to the world.”
Why it matters: The KAVA token has performed alongside of the DeFi market over the course of 2020. It rose to near $5 per token over the summer, and has since fallen to below $3. While it may see further downward pressure, the outlook for the Kava blockchain and their Harvest is positive. Unlike many DeFi projects that rely on Ethereum, which has larger transaction costs attached to its use, Harvest and Kava Labs are tapping XRP, which is extremely inexpensive to use. DeFi may take a year to recover from this year's hot market, but there is long-term value in the sector.