Today, over $250 billion in assets circulate on public blockchains. That includes stablecoins, Bitcoin, Ethereum, and tokenized stocks. But most of it remains unused in wallets or parked on exchanges. These idle holdings generate no yield and incur friction costs whenever moved. The result is a major inefficiency for holders and for the ecosystem at large.
Kaskad’s Approach: Capital That Moves and Earns
Kaskad is built around a simple goal: let users extract value from every asset they hold without losing exposure. Whether you're holding KAS, stablecoins, or tokenized assets, Kaskad enables you to either earn yield or access instant credit against them, without needing to sell.
This is made possible through a coordinated stack of three core technologies:
1. Kaspa: A High-Throughput Layer 1
Kaskad runs on Kaspa, a blockDAG-based Proof-of-Work network designed for speed, finality, and decentralization. With sub-second block times and extremely low fees, Kaspa makes it possible to manage DeFi positions and on-chain liquidations in real time, even for small transactions.
2. Kaspa Layer 2 Bridge Infrastructure
Assets are bridged onto Kaspa’s Layer 2 through EVM-compatible solutions like Igra. This allows stablecoins and other assets to interact with Kaskad’s smart contracts securely and efficiently. The bridge infrastructure avoids traditional custodial models and instead relies on permissionless verification and sequencing directly tied to Kaspa’s L1.
3. AAVE v3.3 Smart Contract Engine
Kaskad uses a fork of AAVE v3.3 to power lending, borrowing, and collateralized credit lines. Users can deposit supported L2 assets as collateral and borrow other assets directly from decentralized liquidity pools. Health factors, interest rates, and liquidations are managed entirely on-chain, with pricing data fed by a custom-built oracle stack optimized for Kaspa.
From Internal Testing to Full Decentralization
Earlier in 2025, the Kaskad team built a custodial prototype to explore product flows before smart contracts were available on Kaspa. This internal V0 ran in a private environment, simulating lending, borrowing, and liquidation logic through a semi-manual backend.
The goal was to test the user interface, validate health factor mechanics, and gather operational insights while Kaspa’s smart contract timeline was still uncertain. The pilot was capped in terms of available liquidity and not intended for public use, but it played a key role in shaping the protocol's direction.
Once Kaspa's Layer 2 roadmap came into view, the team shifted focus toward launching a fully decentralized V1, powered by audited smart contracts and a permissionless liquidation system. That version is now in active development and prepares the protocol for scalable, on-chain deployment.
The Bottom Line
Kaskad is built to make every asset productive. Whether earning yield through lending pools or backing a loan position on-chain, your capital never sits idle. The protocol leverages Kaspa’s fast settlement layer, low fees, and emerging Layer 2 ecosystem to offer a real-time lending experience without relying on custodians or intermediaries.
With a smart contract engine based on AAVE v3.3 and a custom oracle infrastructure tailored for Kaspa, Kaskad brings decentralized credit to one of the most performant Proof-of-Work networks in the space.
