$KAVA's DeFi Model: Balancing Efficiency and Fragility @kava, with lending, stablecoins, and DEX as its core components within the DeFi ecosystem, seeks to build a multifunctional financial network. This model's advantages lie in improved capital efficiency and the facilitation of capital flows through the $KAVA incentive mechanism. However, its heavy reliance on incentives and subsidies also makes the ecosystem fragile. If market sentiment cools and subsidies decrease, lending rates, liquidation mechanisms, and liquidity depth may be impacted. The #KavaBNBChainSummer event boosted user growth in the short term, but the lack of endogenous demand driven by native applications means risks remain. In the long term, Kava must strike a balance between efficiency and resilience if it wants to survive in the highly competitive DeFi market. By reducing its reliance on subsidies and enhancing the practical use cases of its applications, Kava can build a truly sustainable ecosystem. $KAVA's value depends on whether it can transcend its "subsidy-driven" growth logic. #KavaBNBChainSummer Kava’s DeFi ecosystem centers on lending, stablecoins, and DEXs, aiming to create a multi-functional financial network. This design improves capital efficiency and drives liquidity through KAVA incentives. However, the ecosystem’s heavy reliance on subsidies also makes it fragile. If market sentiment weakens and incentives decrease, lending rates, liquidation mechanisms, and liquidity depth may all be affected. Campaigns like KavaBNBChainSummer boost user growth temporarily, but without demand driven by native applications, risks remain. In the long term, Kava must balance efficiency with resilience. Reducing reliance on subsidies and expanding real-world use cases are key for building a sustainable ecosystem. KAVA’s value depends on moving beyond growth purely driven by incentives.