On minting usdx with kava are there any kava rewards?

why is the borrowing of USDX not incentivized (no rewards) since it is the token that will probably most benefit the platform?

is there no liquidity? not enough minting going on atm?

Kava rewards are given when supplied to Kava Lend and no longer just for minting As the rewards for supplying USDX is high (over 70% APY) and with USDX borrowing limited to 5m USDX then it probably doesn't need to incentivized, expecially whe USDX is need to supply to the liquidity pools on Kava swap to earn 200% APY

so there are kava rewards for minting? just been minting for a few days so still a noob ^^ but trying to catch up on all the reading

Not for just minting, but you get 73% APY if you supply those minted USDX to Kava Lend

Do you get the same apy if you buy usdx and supply it?

You will get the same rewards whether you minted borrowed the USDX

Word of advice, I wouldn't recommend buying USDX directly... Mint it with BUSD to guarantee 1:1 peg.

Timing matters

I got a lot at 0.997-1

True to certain extent, but USDX doesn't have a guarantee to trade at 1 USD range and we saw that in the past.

I mean I bought usdt with usdx

You can gain a slight yield advantage by buying USDX below $1.00 compared to minting it with USDX, as minting requires a 101% collateral ratio but depends how cheap you can buy the USDX, certainly at 95c there is a recent advantage, but not so much is over 99c

And in case you buy USDX at 1 USD price and it trades at 94c next day, what do you do?

You are a long-term usdx holder now 😂

Exactly... I prefer to skip this part and mint my USDX with BUSD. No need to worry so much about the USDX movements.

I personally agree with you 😞

Just keep supplying it to kava Lend to earn the rewards, if you want to get back out of USDX in the future wait for it to return to closer to $1, just because it falls a few cents is not a worry if you aren't looking longer term and if you've manage to buy at say 95c you would be earning 6% more rewards than a USDX minter which after a few months would cover any loss by selling below your buy price, but get your point. At 99c the gains may not be worth the worry

But there is no guarantees the drop is only few cents 😅 It could trade at 25c and nobody cares. Plus, waiting to get out from your stablecoin position is not preferable.

As long as kava is a perspective asset it won’t cost 25 cents 🤔 or even 50. Too attractive to buy even at 90 cents now. Yet you are right that nothing guarantees

Also the resupply part, if you could borrow USDX perhaps. Also, the rewards are truly magical internet money with no guaranteed future value either. Just something to keep in mind...

Providing the USDX rewards are decent there will be demand that keeps USDX above 90c in my opinion. For example if USDX was at 50c why mint USDX when you can buy it cand couble your yields compared to a minter, at 25c you would be getting more than 4 times the yield as a minter

There are cases where buying CHEAP USDX makes sense, but buying USDX at ~1 USD range rarely does

I agree at close to $1 the benefit is probably not worth it

I have done a quick look at the yield figures again for which options give the best yield currently, this may change once the USDx borrow limit rises Option 1: Supply BUSD and mint USDX @ 99.7% of the max, borrow USDX and resupply and borrow more until you increased your USDX amount by 31% - 99.3% (including staking rewards) Option 2: as option 1 but intead by USDX for 99c - 103.2% Option 3: Supply BUSD to Kava lend, Borrow BUSD and resupply that BUSD back and repeat until you reach 97 leverage (i.e Start with 1000 BUSD and turn it inot 197 BUSD supplied and 97 BUSD borrowed) - 99.7% in Hard Rewards and liquid BUSD (67.2% APY is in locked hard the other 32.5% APY is in liquid BUSD) This is based on a supply APY of 39% and borrow APY of 45% Option 4: Supply BUSD and mint USDX, borrow BUSD to earn borrow rewards and mint more USDX and repeat - While the borrow APY exceeds the Borrow Reward APY this is not going to give as high a yield as the options above you are paying more in borrow fees than the borrow rewards give you in locked tokens, this may become a decent option once the borrow APY falls back below 10-15%

Same at 0.70-1 for myself