Question 1

What is Kaskad?

Accepted Answer

Kaskad is a non-custodial, multi-asset lending protocol live on two chains: Igra (an EVM-compatible Layer 2 anchored to Kaspa L1's blockDAG via the GHOSTDAG proof-of-work protocol) and Robinhood Chain. Users supply listed assets (USDG, WETH, NVDA, TSLA, PONS on Robinhood Chain; iKAS, USDC, USDT, WETH, cbBTC on Igra) into per-asset pools to earn variable interest, or lock them as collateral to borrow another listed asset. The over-collateralized lending core is built on battle-tested smart contracts and audited by Sherlock. Kaskad's distinctive layers sit on top: the COB Oracle (V1 with Composite Order Book aggregation, TEE-based ingestion, and composite anomaly detection; V2 trustless Kaspa-aligned design in R&D), an immutable 65/35 treasury routing (DAO / Operations), bounded governance with a 48h timelock and 24h challenge window, and activity-based incentives. All positions are managed by smart contracts on the chain where you opened them; Kaskad never takes custody. Kaskad is built for both humans and autonomous AI agents: agents interact directly with the protocol via the open-source MCP server.

Question 2

Is Kaskad the same as Kaspa?

Accepted Answer

No. Kaspa is a Layer 1 proof-of-work blockchain. Kaskad is a lending protocol that runs on Igra, an EVM-compatible L2 sequenced by Kaspa L1. Kaskad is built to anchor liquidity to the Kaspa ecosystem, but it is a separate protocol, fully EVM-compatible, and already deployed beyond it: Kaskad also runs on Robinhood Chain.

Question 3

Do I earn protocol fees just by holding KSKD?

Accepted Answer

No. Holding KSKD passively in your wallet grants no incentives, no voting power, and no fee participation. Participation in Kaskad's incentive system requires staking KSKD and maintaining an active liquidity position (supply uptime above the epoch threshold). The rules are enforced by the contract; there are no shortcuts.

Question 4

What is the cost of using Kaskad?

Accepted Answer

Kaskad runs on Igra L2 and on Robinhood Chain (both EVM-compatible). Transaction fees are paid in each chain's gas currency and are typically negligible: Igra inherits Kaspa L1's high-throughput settlement (10 blocks per second) via GHOSTDAG, and Robinhood Chain offers low-cost L2 execution. Beyond gas, Kaskad does not charge a platform fee on top of the standard utilization-driven interest spread between suppliers and borrowers.

Question 5

Can funds be frozen on Kaskad?

Accepted Answer

No. Kaskad is non-custodial. Your assets sit in audited smart contracts (on Igra or Robinhood Chain) that you alone can withdraw from (or that liquidators can interact with if your position becomes undercollateralized). The contracts have no admin key able to freeze user funds, and bounded governance cannot bypass these rules: every adjustable parameter has a hard floor enforced at the contract level. This protects users from the categories of risk that exist on custodial platforms (regulatory freezes, platform-policy interventions) since no centralized actor, including the Kaskad team, can intervene in your on-chain assets.

Question 6

Why use Kaspa?

Accepted Answer

Kaspa is a Layer 1 proof-of-work consensus that aims to fulfil Satoshi's vision of a P2P decentralised digital cash system. Its blockDAG architecture delivers sub-second finality and high throughput while preserving the security guarantees of pure proof-of-work, making it a strong base layer for performant DeFi protocols. Kaskad runs on Igra, an EVM L2 anchored to Kaspa L1, so users get EVM-tooling familiarity and Kaspa-grade settlement at the same time. iKAS is your KAS on Igra, bridged 1:1, used as collateral and asset on Kaskad.

Question 7

Why Robinhood Chain?

Accepted Answer

Robinhood Chain is an EVM-compatible Layer 2 built by Robinhood on proven rollup technology, designed to bring real-world assets and a mainstream user base on-chain. Deploying Kaskad there brings the same non-custodial lending engine (same contracts, same bounded governance) to tokenized stocks and launchpad tokens: borrow against NVDA, TSLA or PONS instead of selling them, with the fast execution and deep liquidity of an L2.

Question 8

What are wrapped or bridged assets on Kaskad?

Accepted Answer

Bridged or wrapped assets represent another chain's value as a token usable on the chain where Kaskad runs. Kaskad supports a growing set including stablecoins (USDC, USDT, USDS), wrapped Bitcoin (cbBTC, wBTC), wETH, wstETH, SOL and more, brought in via Hyperlane and similar cross-chain infrastructure. The custodial or bridge contract on the source chain holds the underlying; you interact with the local representation in Kaskad and benefit from fast, low-cost L2 transactions while keeping the original asset's exposure.

Question 9

What are the risks involved in using Kaskad?

Accepted Answer

Decentralized lending carries several risks. The most significant is market volatility: a sharp drop in the value of any collateral (e.g. iKAS, cbBTC, wETH) can push your loan-to-value above the per-asset liquidation threshold and trigger a partial liquidation. Smart contract risk is mitigated by a battle-tested over-collateralized lending core and Sherlock audits of every Kaskad-specific module. Oracle risk is mitigated by Kaskad's COB Oracle with Composite Order Book aggregation and composite anomaly detection, designed to flag exchange freezes and abnormal deviations before they hit liquidations. Cross-chain assets that come in via Hyperlane carry an additional bridge-relayer risk, so users with cross-chain positions are encouraged to keep a Health Factor of 1.5 or higher. Kaskad's interface provides real-time metrics and alerts to help you manage these risks proactively.

Question 10

How does Kaskad protect my assets?

Accepted Answer

Kaskad is non-custodial: your assets stay in audited smart contracts at all times (on Igra or Robinhood Chain) never in a Kaskad-controlled wallet. The over-collateralized lending core uses battle-tested smart contracts with years of production use across DeFi; Kaskad's custom modules (COB Oracle, bounded governance, treasury routing, incentives) are audited by Sherlock, with reports published at each release. On the Igra side, settlement security is inherited from Kaspa L1 via GHOSTDAG proof-of-work: no 51% attacks have been recorded on Kaspa since launch. To protect your assets further, we recommend using a hardware wallet via WalletConnect, enabling 2FA on connected interfaces, and tracking your Health Factor with the in-app alerts.

Question 11

What is the health factor, and why does it matter?

Accepted Answer

The health factor (HF) measures how safe your position is. It is computed as (collateral value × per-asset liquidation threshold) / total debt value. A HF above 1 means your position is safe; if it falls below 1, your position becomes eligible for partial liquidation. Each collateral asset has its own liquidation threshold, set conservatively at launch within governance-bounded ranges. Maintaining a HF above 1.5 provides a healthy buffer against market volatility. The Kaskad app displays your HF in real time and sends alerts when it approaches 1.5, prompting you to add collateral or repay part of your loan.

Question 12

What happens if I can't repay my loan?

Accepted Answer

Loans on Kaskad are over-collateralized. If your health factor falls below 1, meaning your collateral no longer safely covers your debt, your position becomes eligible for partial liquidation. Permissionless liquidators (any external actor can call the function) repay part of your debt and receive an equivalent amount of your collateral plus a per-asset liquidation penalty. Only enough is liquidated to bring your HF back above 1; the remaining collateral stays yours. The penalty rate varies per asset and is set within bounded governance ranges. You cannot lose more than your collateral, and you owe nothing once the position is healthy again.

Question 13

How do I supply assets to Kaskad?

Accepted Answer

Connect any EVM-compatible wallet (MetaMask, Rabby, Frame, Coinbase Wallet, or a hardware wallet via WalletConnect) to the Kaskad app, pick your chain (Igra or Robinhood Chain), open the "Supply" section, pick a listed asset (USDC, iKAS, cbBTC, wETH, ...), enter an amount and confirm the transaction. The first time you supply a given asset, you'll approve the smart contract: a one-time on-chain action with negligible gas. Once confirmed, your assets are locked in a non-custodial pool, you receive aTokens 1:1 as a receipt, and interest accrues continuously into your aToken balance.

Question 14

How does earning interest work on Kaskad?

Accepted Answer

Suppliers deposit into per-asset liquidity pools and receive aTokens 1:1 at the time of deposit. Interest is paid by borrowers (subject to a small protocol spread) and accrues continuously into aToken balances; there is nothing to claim, and your balance grows over time. Each pool's rate is dynamic and follows a utilization curve: as more borrowers draw from a pool, utilization rises and both supply APY and borrow APR rise in lockstep. This is the standard over-collateralized lending mechanism proven across DeFi. You can withdraw at any time as long as the asset's pool has free liquidity (your collateral may need to be released first if it is currently securing a borrow).

Question 15

Can I use my supplied assets as collateral?

Accepted Answer

Yes. Any asset you supply can be enabled as collateral to borrow another listed asset, subject to its per-asset Loan-to-Value ratio. LTVs are configured per asset within governance-bounded ranges with a hard floor of 15%; they're set conservatively at launch (for example, iKAS launches around 30% LTV). If you supply $1,000 worth of an asset whose LTV is 30%, you can borrow up to $300 worth of another listed asset. While locked as collateral, your tokens continue to accrue supply interest. Kaskad clearly separates collateralized and free balances so you can track what's still available to withdraw or use elsewhere.

Question 16

What are the risks of supplying assets?

Accepted Answer

Supplying to Kaskad is generally low-risk but not without potential downsides. If you enable supplied assets as collateral, their price drop can push your loan-to-value above safe levels and risk a partial liquidation. Interest rates also fluctuate based on utilization; low borrower demand reduces your APY (the app shows live rates). Liquidity risk is minimal but possible: if a pool is heavily utilized, withdrawals may be delayed until borrowers repay or new suppliers arrive. Smart contract risk, while mitigated by a battle-tested lending core and Sherlock audits, is never zero. Supply only what you can afford to lock, monitor your Health Factor if you also borrow, and use the app's real-time data to make informed decisions.

Question 17

How do I borrow assets on Kaskad?

Accepted Answer

First, supply at least one listed asset and enable it as collateral. Then open the "Borrow" section, pick another listed asset to borrow, and enter the amount within your available borrowing power (computed from your collateral value × per-asset LTV). Confirm the transaction and the borrowed asset arrives in your wallet, on the chain you're using. Borrow APR is variable and follows a per-asset utilization curve; it's recomputed on every transaction. Your collateral and borrow positions update in real time so you can track your Health Factor and act when needed.

Question 18

What assets can I borrow on Kaskad?

Accepted Answer

On Igra, the market launched with a starter set anchored on iKAS / USDC, expanding to the full multi-asset universe via Hyperlane cross-chain infrastructure: USDC, USDT, USDS (stablecoins), wETH, cbBTC (yield-bearing / wrapped majors), wstETH, SOL, iKAS, and additional listings approved by bounded governance. Any listed asset can be borrowed against any other listed asset configured as collateral, subject to per-asset LTVs and pool liquidity.

Question 19

How do I repay a loan on Kaskad?

Accepted Answer

Repaying is straightforward. You can repay the full amount or make partial repayments at any time directly from your connected wallet. There are no early-repayment penalties, and reducing your outstanding debt improves your Health Factor. Repayments are made in the same asset you borrowed, processed in real time on-chain, and your borrowing power and collateralization update immediately. Kaskad supports flexible loan management; you can adapt your repayment strategy as market conditions evolve.

Question 20

What are the risks of borrowing on Kaskad?

Accepted Answer

The main risk is liquidation: if your collateral's value drops and your Health Factor falls below 1, a portion of your collateral is sold via a permissionless liquidation to bring the position back to safety, with a per-asset penalty applied. Variable borrow APR can rise during periods of high pool utilization. Cross-chain assets carry additional bridge-relayer risk (Hyperlane). Smart contract and oracle malfunctions are mitigated by a battle-tested lending core, Sherlock audits, and Kaskad's COB Oracle aggregation with composite anomaly detection, but they are never zero. Borrow conservatively, monitor your Health Factor in-app, and maintain a buffer (HF ≥ 1.5 recommended, especially with cross-chain collateral).

Question 21

What is a liquidation on Kaskad?

Accepted Answer

A liquidation occurs when a position's Health Factor drops below 1, meaning the collateral no longer adequately covers the debt under the per-asset liquidation threshold. Permissionless liquidators (any external actor) can repay part of the borrower's debt and receive the equivalent amount of collateral plus a per-asset liquidation penalty as their incentive. Only enough is liquidated to bring the Health Factor back above 1; the rest of the collateral stays with the borrower. All liquidation actions are recorded on your chain's block explorer.

Question 22

How can I prevent liquidations on Kaskad?

Accepted Answer

Maintain a Health Factor comfortably above 1; 1.5 or higher is a healthy target, especially with cross-chain collateral. The app displays your HF in real time and sends alerts when it approaches 1.5 so you can add collateral or repay part of your loan in time. Borrowing conservatively also reduces risk: staying around 30% loan-to-value rather than the maximum gives you a wide buffer against volatility. Future enhancements may include automated repayment / re-collateralization features; until then, staying informed and reacting promptly is the best defense.

Question 23

What happens during a liquidation on Kaskad?

Accepted Answer

When your Health Factor drops below 1, anyone can call the liquidation function. The liquidator repays a portion of your debt and receives the equivalent value of your collateral plus a per-asset penalty as their incentive. Only a portion is liquidated, enough to bring your Health Factor back above 1. The remainder of your collateral and debt continues unchanged. Fast L2 settlement keeps slippage low even in volatile markets. Your "Borrowings" section updates immediately after the transaction, and all liquidation events are publicly verifiable on your chain's block explorer.

Question 24

Who can liquidate my loan on Kaskad?

Accepted Answer

Liquidations on Kaskad are permissionless: any external actor can trigger them when a position's Health Factor falls below 1. There is no privileged keeper, no whitelisted bot, no centralized authority. The smart contract enforces the rules: partial liquidation only, per-asset penalty applied, healthy positions cannot be touched. The mechanism is open to anyone, which keeps the system competitive and ensures positions are liquidated promptly when needed. As a borrower, you avoid this entirely by keeping your Health Factor above 1; the app's real-time alerts give you time to react.

Question 25

Can AI agents use Kaskad?

Accepted Answer

Yes. Kaskad ships with an open-source MCP server (Model Context Protocol) that lets autonomous agents read live pool data, open and manage positions, claim incentives, and unwind: all on-chain, fully self-custodial. Agents go through the same contracts as humans; there's no separate agent track.

Question 26

What permissions does an AI agent need?

Accepted Answer

An agent needs (a) a funded EVM wallet on its target chain (Igra or Robinhood Chain), (b) the Kaskad MCP server connected to its orchestrator (Claude, GPT, custom), and (c) a clearly scoped permission set you grant in your agent runtime; Kaskad does not require additional KYC or allowlisting for agents.

Question 27

Do AI agents earn KSKD incentives?

Accepted Answer

Yes; incentives are activity-gated, not identity-gated. Any wallet (human-operated or agent-operated) that maintains the minimum supply uptime per epoch is eligible. The rules are the same.

Question 28

Where do I find the MCP server?

Accepted Answer

The repo is open source: github.com/Kaskad-Lending/kaskad-mcp. Integration guides are in the Kaskad Docs.

Everything you need to know about Kaskad.