Strategic Vaults of @kava : The "Autopilot" of DeFi Earnings 🚀
The DeFi universe is full of opportunities, but also complexity. To extract good returns, investors often need to navigate a maze of steps: staking, taking loans, providing liquidity, and monitoring everything in real-time. This is precisely why the network #KAVA created the Strategic Vaults — mechanisms that automate advanced earning strategies with just one click.
How does it work in practice?
Imagine you arrive at #KAVA with ATOM tokens and want to maximize your earning potential. By depositing into the Staked ATOM Vault, the smart contract takes the wheel and follows a pre-programmed strategy:
1. Initial Staking – The ATOM is staked on the Cosmos network, ensuring the basic validation APY.
2. Receiving LST – In exchange, the vault generates a liquid staking token (LST), which serves as a receipt for the staked asset.
3. Collateralized Loan – This LST is used as collateral in a Kava credit market, releasing USDC stablecoins.
4. Extra Liquidity – The USDC is directed to a high-yield stablecoin pool in a DEX.
The final result
With a single action, the user begins to receive earnings from two fronts simultaneously: ATOM staking + liquidity in stablecoins. The sum can generate net returns between 20% and 25% per year, in an automated and uncomplicated manner.
No wonder, there are already over US$ 50 million deposited in these vaults. They are proof that simplifying access to advanced DeFi is the key to attracting more and more investors.
