What Is Kava Swap (SWP)?

Kava Swap is a blockchain application on the Cosmos SDK. Kava Swap enables users to access tokens from a liquidity pool. A liquidity pool is a smart contract that allows users to exchange tokens. These exchanges can also occur without the buyer or seller executing the contract. 

Kava Swap is governed using the Kava Protocol. The protocol provides different DeFi functionalities, such as trading without permission. According to its whitepaper, Swap uses governance to analyze and allow pools to be created and exist. Kava Swap proposes to create a pool of all available tokens on the Kava platform. The pool is created with the reserved baking of a traditional currency. 

SWP is the governance token and a part of the Kava Swap application. Using these SWP tokens, users can vote on any changes regarding the parameters of the Kava Swap application. Additionally, the holders of SWP can use the tokens to vote on proposals that can potentially provide support to the functionality of the application. 

Kava Swap uses Hard Protocol as part of its Kava Chain. The protocol adds functionality to the Kava ecosystem. The Hard Protocol aims to expand the Kava Ecosystem to include an autonomous money market protocol. Both the Kava and Hard protocols use tokens native to the Kava Chain. 

Along with the native tokens on the Kava Chain, some non-native tokens are also issued on the platform. Swap keeps its native tokens as collateral to create new stablecoins within the cryptocurrency space. Using a proof of stake (PoS) method, Kava holders can generate yields from Swap. 

History of Kava Swap (SWP)

Kava Swap was introduced in November of 2021. The platform was part of an upgrading proposal for switching to the kava-8 blockchain from kava-7. The maximum supply of SWP tokens is 250 million.