KAVA Labs Unveils the Kava SAFU Fund for Community

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Hailing as a top-tier DeFi portal devoted to providing a robust suite of services for developers, KAVA Labs has proudly announced the launch of its highly-anticipated project, Kava SAFU Fund, a dedicated on-chain community pool. The SAFU Fund will help enhance the platform’s security standards by eliminating the risks of black swan events, thereby providing high-end security of user funds. The channel will allow customers to save themselves from various attacks, including intrusions, liquidation complications, bugs, exploits, technical problems, etc., that causes loss of funds earlier.

The technological expertise of Kava’s core architecture, testing modules, regular audit trails, and market scrutiny has helped the firm in keeping itself safe from illicit events. Now, the introduction of the SAFU Fund pool is an added support to the security and infrastructure of the portal. The fund shall be designed via a one-off inflationary system in which 10% of the firm’s present token supply will be minted and secured with the SAFU Fund pool. The Kava governance community will take the necessary decision to re-capitalize the fund after its disbursement. This will be achieved through platform fees, new inflationary events, or regular inflation contributed to the fund in the future.

Talking about the launch, Michael Ng, the Co-Founder of StakeWith.Us, conveyed that the fund is likely to positively influence the DeFi sector. The users will be offered a guarantee of compensation during the occurrence of a black swan event. This will help to increase the trust in the firm.

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The Fund will cover the following incidents:

  • Network slowdown causing fund loss.
  • Powerful bugs such as those causing incorrect pooling of interest.
  • Serious network exploits and cross-chain software intrusions like multi-sig wallet complications.
  • Complications in auxiliary network tools.
  • Market-related changes.
  • Failures during liquidation.
  • Upgrade related bugs and rollback modules causing loss of funds.

Usage of Fund

The issues related to the fund’s expenditure shall be done through votes. The Kava token holders will give their votes to decide if the project qualifies for the purpose. Once a case is passed by the voters, the tokens proposed for distribution shall be moved from the fund to the given address in the proposal. The project will help to strengthen Kava’s position in the DeFi space by making it evolve as a potent solution for users looking for the security of funds in the vulnerable industry.

 

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Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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