Kava Lend

Purpose and Utility

Kava Lend (formerly known as Hard Protocol) is a decentralized money market built on the Kava blockchain. The HARD token serves as a governance token for the Kava Lend protocol, allowing holders to participate in protocol decisions and earn rewards for participating in governance.

Business Model

The core functionality of Kava Lend revolves around lending and borrowing crypto assets, which generates interest for lenders. This interest-based lending model is fundamentally problematic from an Islamic finance perspective, as it involves riba (interest).

Real-World Adoption

The protocol has achieved significant adoption within the Kava ecosystem, with millions in total value locked (TVL) and active lending markets for various cryptocurrencies. However, the primary use case remains interest-based lending.

Platform Development

The development team maintains regular updates to the protocol, with ongoing improvements to the lending markets and governance mechanisms. The project demonstrates technical legitimacy and continued development effort.

Token Distribution

The token distribution includes allocations for the team, investors, and community, with vesting schedules in place. While the distribution model appears reasonable, the underlying business model remains problematic from a Shariah perspective.