AIP #23 - Deploy Abracadabra on Kava Network

Governance Proposals Voted Proposals
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AIP 23 - Deploy Abracadabra on Kava Network

tl;dr Deploy the Abracadabra infrastructure, MIM and cauldrons suite natively on Kava Network!

Background

The Kava Network is a Layer-1 blockchain that combines the speed and scalability of the Cosmos SDK with the developer support of Ethereum. The Kava Network will empower developers to build for Web3 and next-gen blockchain technologies through its unique co-chain architecture. KAVA is the native governance and staking token of the Kava Network which enables its decentralization and security.

Kava network allows for seamless interoperability between the Ethereum and Cosmos Co-Chains empowering developers to build in whichever environment they want without sacrificing access to the users and assets of the other. Kava’s lightning-fast Tendermint Core consensus engine enables the free flow of users, assets, and projects between Kava and the industry’s most relevant ecosystems at scale. The Kava network also stands as the only blockchain with a native issuance of USDT that seamlessly connects to the Cosmos ecosystem.

Kava network also features an innovative and transparent on-chain incentive program, Kava Rise, to ensure that the best builders in the Ethereum and Cosmos ecosystems are properly rewarded for driving growth to the Kava Network.

Proposal

Now that there is a LayerZero endpoint on Kava mainnet, the Kava Origin Foundation proposes that Abracadabra launch their lending protocol on Kava.

To incentivize this launch and campaign, the Kava Origin Foundation proposes the following incentive structure for Abracadabra:

• Guaranteed total amount of 900,000 KAVA to be distributed over a 10 month timespan

• 150,000 KAVA of the total amount will be provided upfront upon deployment as a kickoff grant which can be used discretionarily

• A guaranteed minimum of 75,000 KAVA per month based on Kava Rise reward distributions. Kava Rise is an innovative and transparent on-chain incentive program for developers driving adoption to the Kava Network. For example, if Abracadabra’s TVL and usage earned the protocol a total amount of 50,000 KAVA in rewards for the month of August, the Kava Origin Foundation would provide an additional 25,000 KAVA to meet the 75,000 KAVA minimum. This would be applicable for 10 months.

If Abracadabra’s TVL earned it more than 75,000 KAVA for the month, the protocol would be allowed to keep the entire reward amount in excess of 75,000 KAVA. In other words, there is no upper limit to the amount of rewards Abracadabra can receive, but for 10 months, the protocol will receive a minimum of 75,000 KAVA per month.

These KAVA rewards will be deposited into the Abracadabra protocol treasury and used to boost Abracadabra’s adoption on Kava and bootstrap MIM liquidity. These rewards would also be used to cover deployment and development costs.

Kava aims to conduct a robust marketing campaign to maximize the benefits of Abracadabra’s successful track record in DeFi. By highlighting Abracadabra’s capabilities, we aim to showcase the immense value it brings to Kava and the entire blockchain ecosystem. By leveraging Abracadabra’s powerful features, Kava enables its cauldrons and leveraged farms to be available on the Kava EVM, empowering users to thrive in a dynamic and interconnected digital economy.

Through the integration of Kava into Abracadabra, a number of new revenue streams and gateways are unlocked for the Abracadabra DAO. A notable area of interest is our esteemed Kava Rise program, which rewards builders with transparent on-chain incentives for their invaluable contributions in driving activity and generating value. The prospect of building with Abracadabra has sparked great enthusiasm among Kava users and developers, promising to amplify value, utilization, and synergy within the two ecosystems. Ultimately, this integration will help foster a thriving ecosystem, channeling an increased number of users and value back to the DAO.

Kava Ecosystem

Following the native deployment of USDT, many protocols will be looking to launch directly onto Kava. This will present several interesting cauldron opportunities for Abracadabra. A few notable launches:

  • KFI, a GMX fork on the Kava network, would be an ideal candidate for a new magic autocompounder, much like magicGLP
  • Curve Finance’s stableswap is also live and will be offering incentivized liquidity pools for LP farming
  • Stargate Deployment will unlock stable farm cauldrons, much like those on mainnet!

Steps for Integration

  • The proposal will remain as AIP currently for the next 3 days, as AIP #23 and will then be moved to snapshot voting for 72 hours.

  • If the proposal was to pass, Abracadabra would deploy both Degenbox infrastructure and the MIM token on Kava, and start integration for Kava Native Collaterals.

  • The Kava Origin Foundation initiates a comprehensive marketing campaign aimed at showcasing the significance of Abracadabra on the Kava network.

Voting is now live and will last 72 hours: Snapshot

Voting has passed, Abracadabra infrastructure is being deployed!

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I had the chance to meet the kava team in multiple occasion, seems to me like what they are developing can be the perfect fit for a new Abracadabra Deployement.

The Kava ecosystem is about to be populated with vibrant new projects, most of which have already reached out for potential collaborations.

USDT native deployment will open the gate for large liquidity injections, that will be incentivised by the Kava rise reward.

On the technical side, the developers have already been assessing kava since a couple of months, and are confident that a deployment there is possible and safe.

Looks like it checks out on all sides I am excited to see this moved forward to voting, hard yes for me!

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I think this is such a good opportunity for Abracadabra to expand to a new chain. For Abracadabra it’s expensive to expand to new chains as liquidity needs to be bootstrapped, but the incentives described in this proposal would be able to assist with that. Also it seems there’s potential for some new cauldrons :heart:. The only downside to this proposal as I see it, is the exposure to risks with regard to the underlying blockchain. However, this should be a insignificant risk.

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More exposure for abracadabra as well as rise rewards?! Thats a big win-win!! Sounds like an awesome idea to me. Looking forward to seeing how abracadabra is deployed!! Lets get this vote on… :man_mage::magic_wand:

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I am not a “cosmos” advocate by any means. I have yet to see robust economic activity and or federation on chain.

I do see the framework for potential growth

Given recent adoption by USDT , enhanced incentives for MIM, I will give my support for this AIP under the considerations that extreme care is taken with selected collateral , LTV, liquidity conditions and or market liquidity strategies .

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The proposal put forward for deploying the Abracadabra infrastructure, including the MIM token and cauldrons suite, on the Kava Network is commendable.
It highlights the potential for synergies between the two ecosystems and the benefits it would bring to both projects.
Considering the integration of Abracadabra with Kava, a question arises: Will the liquidity of the MIM token be moved to Kava, and will it be possible to manage that liquidity on the decentralized exchanges (DEXes) within the Kava Network? This would enable users to access and trade MIM on Kava, enhancing liquidity and providing additional trading opportunities for token holders within the Kava ecosystem.

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