1) As we read more about @kava_platform we see more risks. Here is an outline of some of those early concerns for the #cosmos ecosystem. #defi #evm #atom #akt #bnb
2) 2 validators could shut down Kava’s entire chain anytime. While unlikely they are very centralized.
3) Kava dilutes the holders by 100% a year and even stakers only get ~21% of that. The rest goes to programs like bribing projects through Kava Rise.
4) The Kava team may lack the financial knowledge to build such a product given their background and the fact that their platform has always had issues. One example is USDX has almost never been pegged to $1.
5) Kava has always been focused on Kava and Binance. They missed every opportunity to become connected with the Cosmos ecosystem. Their CEO is borderline arrogant in his posts.
6) Their tokenomics are broken. For example ATOM right now is on “surge” which means it pays a 30.71% APY above the usual. But it is paid in a token with a 100% dilution and a 1 year lockup…
7) That would mean the APY best case is actually closer to 15% while staking ATOM directly is 18.89% with only a 21 day lockup. ATOM rewards paid out are paid out regularly and are actually liquidity unlike Kava.
8) We believe USDX poses a systematic risk to their entire platform because it is built on bad tokenomics and is paired against all assets on the platform.
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