- Kava Labs is developing a stablecoin collaterised using Ripple’s XRP
- Ripple’s Xpring participated in a $1.2 million Kava Lab’s fund round
Kava Labs, the world’s first Interledger solutions provider enabling interoperability and liquidity to blockchains, wallets, and exchanges, is designing a stablecoin named as USDX. The stablecoin is pegged to a USD and collaterised with Ripple’s XRP.
The USDX appears like the MakerDao, however, it is built on Cosmos, a new blockchain protocol that makes use of Tendermint BFT for consensus. It also has a hub-and-spoke model of cross-blockchain interoperability that emphasizes composability and self-sovereignty of application specific blockchains.
Kava Labs says it believes a major financial function of Cosmos is the offering of decentralised pegged assets like pegged Bitcoin and other crypto native assets, and so, the reasons it created USDX.
At the moment, the Kava Lab is designing a blockchain on the Cosmos ecosystem for a Collateralized Debt Positions (CDPs).
A Look into the XRP Sidechains
XRP Sidechains of the USDX is designed on previous efforts of Tendermint based sidechains.
The one-way XRP pegged sidechain based on the Tendermint BFT consensus protocol gives decentralized clusters of validators the advantage to man a reserve of XRP in a sidechain environment.
The XRP pegged sidechain contains a dynamic reserve multisignature wallet on the XRP ledger and a peg client that transfers and verifies transactions between the two networks.
Kava Labs is Proudly Financed by Ripple’s Xpring
Kava Labs is one of the many companies financially supported by Ripple’s Xpring.
The startup raised around $1.2 Million in funding to perfect the development of an Interledger solutions for blockchain technology.
The investment round was spearheaded by Lemniscap and Digital Asset Capital Management. Others involved in the funding are Ripple’s Xpring, Coil (another Xpring backed firm), 2020 Ventures, Arrington Capital, Hard Yaka, Robot Ventures, UniValues Associates, among a host of private investors.
Ethen Bear, SVP at Ripple’s Xpring, said the Kava team is devoted to the vision of interoperability in payments and amongst blockchains. The firm, according to him is a partner in achieving the much-desired Internet of Value while enabling hassle-free value movement using the interledger protocol.
Ripple’s XRP Community Responds to the Innovation.
One of Ripple’s XRP prominent community members, XRP Research Center, offered a future idea for the XRP collaterised stablecoin, saying he can only dream about USDX “being added to an ILP connector”.
“Thus, you’d be able to stream USDX payments with coil without XRP volatility (being USDX backed by XRP itself),” he concluded.