Hard Protocol is a decentralized lending marketplace built on top of Kava. Initially, it supports deposits in BTC, XRP, BNB, BUSD, USDX, in the future it will also support loans with excess collateral. The HARD token is its own protocol management token, which is also planned to be used as a reward for liquidity providers.
The project is supported by industry giants Binance, Bitmax.
From November 3, 2020, the HARD token is available for farming within the Binance Launchpool platform. The distribution involves users who have invested in BNB, KAVA or BUSD pools and hold them for up to thirty days. Listing and opening of trading in pairs HARD / BTC, HARD / BNB, HARD / BUSD and HARD / USDT are scheduled for November 6 (9:00 Moscow time).
We offer an overview of the Hard Protocol and the HARD token from the editorial staff of Btcnewsweb.com.
|Token type||BEP-20 and native Kava token|
|Blockchain||Binance Smart Chain, Kava|
|Total emission||200 000 000 HARD|
|Binance Launchpool Distribution Start Date||03.10.2020|
|Will be distributed to Binance Launchpool||6,000,000 HARD (7.5% of the total issue)|
The essence of the protocol
Hard Protocol is a cross-chain money market that provides an opportunity for decentralized earnings on cryptocurrency assets. In particular, it will provide users with the opportunity to earn with coins such as BTC, KAVA, BNB, XRP, BUSD, USDX. Security measures are fully provided by the Kava blockchain (validators, bridges for transferring funds, partner services such as Chainlink oracles).
Three types of work with the protocol:
- Delivery of liquidity with interest earned on its assets.
- Borrowing – the user invests some assets in order to receive others against them.
- Profitable farming. Both lenders and borrowers receive HARD tokens for actions on the platform.
Since the Hard Protocol is built on Kava, it has access to any asset on the Kava blockchain. In addition, being an open and unrestricted application, the protocol is available to anyone anywhere in the world. Various crypto-exchanges, fintech applications and other financial institutions can freely integrate Hard Protocol money market instruments and provide opportunities for earning and lending to their users.
Role of KAVA tokens
Initially, the developers of the Hard Protocol considered the possibility of using KAVA tokens to control the application. There are three reasons why this option was abandoned:
- The development of Hard should be driven by the contributors who use it, not everyone who interacts with the KAVA blockchain. The likelihood of success in the long term is reduced if you mix the management of the entire blockchain with the management of a specific application.
- The KAVA token is planned to be left as a reserve asset, which will be responsible for recapitalizing the credit protocol. Therefore, it would be unwise to undermine his value in this role.
- The current DeFi market is profit-oriented, so there should be incentives for liquidity providers and borrowers. Therefore, the project initially needs a certain supply of tokens. For this, it would be necessary to significantly increase the stock of KAVA (by more than 50% of the available supply). This would lead to a decrease in value and negatively affect all holders of this token.
For providing security and cross-chain, the Hard Protocol infrastructure (and other applications on this blockchain) should theoretically compensate Kava’s stakers. Therefore, users of the Binance exchange will be able to receive a certain amount of HARD tokens as a bonus for the Kava deposit.
HARD Token on Binance Launchpool
Any modern decentralized finance application must provide incentives for users to ensure that the application continues to evolve and maintain an appropriate level of decentralization. The HARD token acts firstly as an incentive, and secondly, for the distribution of voting rights among community members. All of its holders are collectively responsible for managing important protocol parameters, such as setting the level of fees or determining the rewards between all supported assets. HARD tokens will also be used to incentivize early contributors.
The maximum issue of HARD is 200,000,000 pcs. Distribution:
✅ 63.5% treasury
✅ 4% for ecosystem development
✅ 25% for developers
✅ 7.5% at Binance Launchpool
On November 3, 2020, the distribution of the HARD token began on the Binance Launchpool, which will last for 30 days. Supported pools:
✅ BNB: 3,600,000 HARD (60%)
✅ BUSD: 600,000 HARD (10%)
✅ KAVA: 1 800 000 HARD (30%)
Soon (November 6), the listing of the token on Binance is planned.
Advantages and disadvantages
✅ Lending protocols are one of the most promising areas in DeFi.
✅ Support for top cryptocurrencies already at the first stage of launch.
✅ Strong community of Kava blockchain users.
✅ Support from major cryptocurrency exchanges.
✅ An already working project with support for Trust Wallet and Ledger wallets.
❌ The functionality is still being finalized. The next stage of development is planned for the end of December.
The Hard Protocol is in some way a logical addition to the full-fledged DeFi ecosystem currently emerging around Kava. Provides interesting opportunities for borrowing and lending popular currencies on flexible terms. The Kava community is one of the most active in the crypto environment, so it is well suited for launching new projects.