Simplex Tie-Up With Kava Brings Fiat Directly to Defi
As Kava works to expand its multi-asset defi platform’s appeal, the inclusion of Simplex’s fiat-to-crypto processing infrastructure will provide a fresh avenue for users to enter the defi ecosystem with fewer steps and conversions.
New On-Ramp to Streamline Defi Accessibility and Participation
As decentralized finance (defi) regains its footing following the May decline in total-value-locked (TVL) which mirrored the broader selloff in cryptocurrencies, the race is on to improve the overall approachability of this nascent space.
This has led to a flood of investor funds entering the space to support protocols that feature low transaction costs, scalable infrastructure, and intuitive use. However, the one area that has remained largely untouched is the actual fiat gateway to defi protocols. Investors and traders must move coins and tokens into the ecosystem, adding an extra layer step for participants with fiat funds.
Kava, the native defi platform of the Kava blockchain with over 250,000 users, has overcome this hurdle by integrating Simplex’s fiat-to-crypto payment processing services. The new approach means that users can directly enter the Kava ecosystem using a credit or debit card without moving money through other fiat-to-crypto channels first, making it the first defi platform to support direct purchases of the native token.
According to Kava’s vice president of global business development, Aaron Choi:
Kava Labs is dedicated to reducing friction and continuously improving our users’ experience so they can purchase KAVA safely and easily around the world. Our partnership with Simplex provides for a simple and streamlined way to use credit or debit cards to buy KAVA and gain access to all of the assets on the Kava chain.
Simplex, which provides a fiat bridge into and out of the crypto universe for some of the world’s largest crypto exchanges, including Binance, believes that embedded fiat services will also improve the defi platform’s appeal. Ari Last, the vice president of business development at Simplex, echoes this notion,
We’re delighted about this new partnership with Kava.io which will give millions of users worldwide a simple and convenient way to purchase KAVA.
This Simplex integration dovetails the latest developments that Kava unveiled to customers, namely the Kava Swap platform, which is set for launch in August, helping broaden the platform’s reach.
Besides this, other pillars of the ecosystem are due to arrive, the platform already supports cross-asset capabilities through its use of the Cosmos SDK, helping Kava deliver two-sided market-making in bitcoin (BTC), binance coin (BNB), kava (KAVA), and XRP.
Lending, trading, and yield farming are also available in the cryptocurrencies as mentioned above and polkadot (DOT) in addition to the issuance of Kava’s decentralized stablecoin, USDX, to support its accompanying lending activities.
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