Kava, as the platform for the native issuance of USDT, has become the entry point for stablecoins in the Cosmos ecosystem.
When the zero-inflation mechanism is combined with stablecoins, the effect is twofold.
First, stablecoins provide liquidity, ensuring the smooth operation of the ecosystem; second, the zero-inflation mechanism protects the long-term value of tokens.
These two aspects complement each other, allowing users to confidently use stablecoins for trading and lending while also being assured of holding $KAVA long-term without worrying about value dilution.
In many public chains, stablecoins and inflation incentives are often contradictory: the inflow of funds relies on stablecoins, but their value is weakened by inflation.
Kava's approach precisely resolves this contradiction, achieving a win-win situation with a healthy model.
