During a Twitter space hosted with the Kava network, Hover announced the launch of Project Lever — the first DeFi staking solution on the Kava Chain that offers real yield across several vault strategies such as fixed yield staking, leveraged staking, volatility hedging, and more.
Users can now deposit their funds into permissioned ‘Smart Wallets’ with different Vault Strategies that will determine how the funds will be allocated. Hover will then deploy a strategy for each wallet to maximize the actual yield holders will earn. This will be achieved via fixed yield, hedging against USD, and leveraging validator income through liquid staking.
‘Project Lever’ prevents Hover from being reliant on token emissions. Instead, Hover’s ecosystem can retain its TVL, providing users with further security and use cases.
During the Twitter Spaces, Hover core contributor Vincent Wu pointed out that the DeFi summer exposed risks and shortcomings that investors paid the price for in the bear market. In 2020, many DeFi projects offered APY through excessive token emissions, which was beneficial while token prices were rising. This method quickly became a problem as investors soon realised the yield they received devalued the value of their token through increased supply being introduced into the market.
As DeFi grows, investment solutions and tactics need to mature together with the market and investors. With the crypto market growing and stabilizing, DeFi must provide sustainable investment solutions to cater to the larger retail populace. Hover does exactly that. It doesn’t aim to compete with other DeFi platforms that promise quick, high APY on token emissions, the prices of which will likely depreciate due to increased total supply. Hover promises sustainable yield which will benefit defi users who are not used to building their own strategies.
“Would you invest your money into an asset with a 1000% interest rate if they had a fund that promised 100% APY? Probably not, since this rate is much lower than the underlying interest rate,” said Vincent Wu, Hover’s core contributor. “Sadly, when it comes to Web3 assets, investors often look at the flat APY rate and overlook the token emissions model. Defi users sometimes lean towards platforms offering the highest returns but fail to see that a system relying solely on emissions and increasing token supply cannot guarantee long-term rewards. At Hover, we go beyond solely token emissions to find real-yield opportunities, building a stable and secure DeFi ecosystem.”
Hover has covered the details of Project Lever and its mechanisms in a Medium article published at the time of the announcement. More information on particular Vault Strategies will be announced in due course.
About Hover:
Hover is built with a simple barometer for success, reclaiming financial freedom for all. Hover is a non-custodial lending and borrowing platform on Kava that integrates an innovative approach to lending and borrowing with in-protocol staking rewards, rebates, and a platform-free rewards mechanism. Hover’s mission is to create accessible, secure, and democratic DeFi solutions. Hover’s integrated tokenomics model provides enterprise-grade decentralized finance services for individual users and investors. With eight HOV staker tiers, loyal Hover users receive borrowing and liquidation rebates and participate in the platform’s governance. Those who undergo Hover’s KYC process can also join Hover’s rewards program, reaping a share of Hover’s protocol fees. This new model makes decentralized more accessible and user-owned. At the same time, Hover secures user funds with 24/7 market risk monitoring, using real-time qualitative and quantitative financial data to assess risk parameters. Learn more at hover.market.
For more information pertaining to this release, please contact krystyna.kozak@eakdigital.com.
