HARD Protocol Project Review: Kava's Cross-Chain Money Market

HARD Protocol, the first-ever cross-chain money market where users have open access to a lend, borrow, and earn system.

By
Goon Trades
on
November 28, 2020
Category:
Project Insight

HARD Protocol a Lend, Borrow and Earn Application

Kava Labs has launched its own cross-chain money market that offers lending and borrowing services. The HARD Protocol can leverage Kava's blockchain technology to create more functional services that allow users to open access to the De-Fi world. Kavas cross-chain market, initially known as Harvest – and rebranded to HARD Protocol due to the recent hack of Harvest.IO, provides users with ease of access to the decentralized finance (De-Fi) space. 

This is a massive step for De-Fi as it gives users more De-Fi applications (Dapps) to choose from. Many users will prefer to use HARD's cross-chain market instead of having to battle on the Ethereum network to get their transactions sent during periods of a high volume. Users can expect to pay gas fees above $50 on similar lending and borrowing services during high volume days, such as CREAM, AAVE, and COMP. 

How was the HARD Protocol Application Built?

The Hard protocol is built on the Kava blockchain, allowing it to use Kava's cross-chain bridges, Chainlink oracles for price reference, and also harnesses Kava's security system.

Currently, the project is still in its HARD V1 stage of its roadmap. This update was pushed on Oct. 15 and allowed users to deposit on the supply-side to earn HARD governance tokens. Currently, users can supply USDX, KAVA, HARD, and BNB. At the time of writing, yields range from 20% (Supply BNB) and up to 1,800% (Supply HARD). Kava is still developing its HARD v2 update, which allows users to supply assets and borrow them as well. This completes the lending and borrowing service that the Hard protocol aims to launch in late December.

 Key Advantages of the HARD Protocol

  • HARD is an open and permission less De-Fi application that allows access to anyone and everyone. This includes integration of the HARD money markets into Fintech app's and even Financial Institutions.

  • The HARD governance token allows users to evolve the platform on how they see fit

  • Allows users to effortlessly lend, borrow and earn without exposure to high transaction fees

Tokenomics & Distribution

The Kava team has conducted no private or seed HARD token sale to achieve a fair distribution, following the pictured distribution schedule.

Liquidity Mining Rewards (Yield Farming)

The Hard protocol allows users to earn through borrowing and supplying assets, through rewarding users in its native governance token, HARD. The HARD governance token aims to enable users to control what assets will be offered, reward distribution structure, and have access to setting platform fees or other important parameters. As previously mentioned, in HARD v1, users can supply USDX, KAVA, HARD, and BNB to receive HARD governance tokens. At the time of writing, the TVL is $29,035,019, which can be seen in table 1. With the release of HARD v2, HARD protocol will accept more assets and enable borrowing and borrowing rewards.

Source: https://hard.kava.io/

 

   

   Pictured is the TVL and Reward APY's on HARD protocol at the time of writing    

   
HARD Protocols Future

Currently, HARD is focusing on pushing out HARD v2, with a current launch date set at Dec. 30, 2020. This upgrade consists of governance expansions and borrow-side invectives, which will complete the platform's aim of a cross-chain lending market. Supply and borrow incentives for the following digital assets will be supported with the release of HARD v2:

  • BTC
  • XRP
  • BNB
  • BUSD
  • LINK
  • USDX

HARD will only continue to expand as KAVA continues to build out its De-Fi ecosystem, as the HARD governance launches and begins creating proposals.


Overall Thoughts

HARD Protocol provides alternatives to "blue-chip" De-Fi lending platforms such as AAVE, SNX and COMP. Its cross-chain technology built using KAVA allows for minimal fee's and secure transactions. The HARD Protocol provides lend, borrow, and earn in an accessible fashion. While at the moment, users can only supply, there are still favorable yields, and the Hard v2 update is right around the corner. The introduction of borrowing to the platform will propel it into the same class as the Ethereum De-Fi giants.

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Goon Trades

Greg (GoonTrades) is BSC News' Chief Editor and is also a writer for the team. Currently enrolled as an economics major, he finds himself as a cryptocurrency researcher, writer, and technical trader.