# Kaskad — Kaspa-Powered Lending Protocol (Full Reference)

> Kaskad is a decentralized lending and borrowing protocol built on the Kaspa blockchain (blockDAG architecture). Users deposit $KAS as collateral and borrow stablecoins instantly without selling their assets.

## Protocol Overview

Kaskad is the first compliant lending protocol built natively for the Kaspa ecosystem. The core mechanism:

1. Users deposit $KAS into smart-contract-managed lending pools on Kaspa L2 (Igra mainnet).
2. Deposited KAS serves as collateral for borrowing stablecoins (USDT, USDC).
3. Interest rates adjust dynamically based on pool utilization.
4. A custom oracle aggregates prices from 13 exchanges using a weighted median with an arbitrage simulator.
5. Liquidation triggers when Health Factor < 1, with a 5% penalty.

Design goals: non-custodial, permissionless for the lending protocol itself, oracle-backed (manipulation-resistant), compliance-aware (regulated legal entity, AML/CTF considerations, modular KYC for fiat on/off-ramps).

### Key Parameters

- Maximum LTV: 70% (recommended ≤ 50%)
- Liquidation threshold: Health Factor < 1
- Liquidation fee: 5%
- Supply APY: 2-10% (up to 12%+ with $KSKD incentives)
- Borrow APR: 3-8% (dynamic, utilization-based)
- Minimum deposit: ~$100 equivalent in KAS
- No lock-up periods for suppliers
- Health Factor alerts trigger at 1.5 (recommended ratio above 2 for safety)

## Token: $KSKD

- Total supply: 1,000,000,000 (fixed, no inflation)
- Utility: governance voting, staking, incentive distribution
- Governance: epoch-based, TVL-weighted voting system
- Treasury: protocol fees fund development and liquidity incentives

## Oracle System

Kaskad runs a custom oracle that aggregates real-time price feeds from 13 exchanges:

- Condensed Limit Order Book: simulates arbitrage opportunities across exchanges in real time
- Weighted median for manipulation resistance
- Sub-second price updates thanks to Kaspa's 10 BPS architecture (planned: 100 BPS)
- Anomaly detection: HFT arbitrage strategies detect exchange freezes and abnormal deviations
- Fully auditable — every price point is on-chain; the condensed LOB is open for inspection
- Powers liquidation triggers, LTV calculations, and interest rate models
- A public live dashboard (WebSocket-backed) is available at https://kaskad.app/oracle/dashboard
- Research lead: Eliott Méa (ETH Zurich, KEF grant recipient)

### Supported Exchanges

Binance, Bybit, OKX, KuCoin, Gate.io, MEXC, BitMart, HTX, Bitget, Kraken, Coinbase, LBank, XT.

## Roadmap

- **V0 (Q2 2025 — completed)**: Internal custodial lending prototype, manual liquidation engine, UI/UX testing with early users.
- **V1 (Q3 2025 — active)**: Mainnet launch. Lending logic deployed on Kaspa L2, custom oracle with Chainlink Aggregator interfaces, smart contract liquidation engine, Kaspa wallet integrations (Kaspium, Kastle, Kurncy), block explorer integration.
- **V1+ (Q3-Q4 2025)**: Real-time notifications, subgraph integration, modular oracle architecture, expanded UX and analytics.
- **V2 (Q4 2025+)**: Additional token support (wBTC, ETH), fiat-backed borrowing capabilities, protocol-specific DeFi modules, cross-chain capabilities.

## Team

- **Eliott Méa** — Lead Oracle Architect. Master's in Pure Mathematics from ETH Zurich, KEF grant recipient under Yonatan Sompolinsky.
- **Quentin Hopp** — Chief Partnership Officer. Crypto-native strategist with mining and infrastructure experience.
- **Julien Daubert** — CTO. Seasoned tech entrepreneur, data and distributed systems expertise.
- **Jack Bagayoko** — COO. Product-focused DeFi builder, performance optimization.
- **Anton Kozlov** — Smart Contracts Expert. 12+ years embedded hardware, M.Sc. in Nanoelectronics, ZK proofs.
- **Pierrick Barnes** — Backend Developer. Scalable backend systems, reliability and clean architecture.
- **Marius Ortiz** — Frontend & Design. Senior frontend engineer with strong design background.
- **Yuliya Krikunova** — Smart Contract Developer. 6 years software engineering, 3 in blockchain, Master's in Financial Systems.
- **Paul Colagrande** — Full-Stack & Network. Kaspa ambassador, core protocol and oracle development.

## Partners

- **Igra Labs** — L2 infrastructure partner (https://igra.tech)
- **3SEARCH Capital** — Official pooling partner for smaller investors (https://3search.capital)
- **Storm Partners** — Investment / venture partner (https://stormpartners.com)
- **SVH (Singularity Venture Hub)** — Venture partner (https://svh.ventures)
- **ForYield** — Investment platform integration (https://foryield.com)
- **MEXC** — Exchange partner (https://mexc.com)

## Legal Entity

- Company: POW Incentives S.A.
- Jurisdiction: British Virgin Islands
- Company number: 2189390
- Incorporated: October 9, 2025
- Entity type: BVI Business Company
- Registered address: Intershore Consult (BVI) Ltd., Intershore Chambers, P.O. Box 4342, Road Town, Tortola, British Virgin Islands
- Note: a legal opinion for $KSKD to be classified as a utility token is in progress with the company's lawyers.

## Compliance Framework

- KYC/AML via ForYield (for fiat on/off-ramps)
- Smart contract audits by Sherlock (https://audits.sherlock.xyz)
- Multi-signature management
- Quarterly community reports

## Technical Stack

- Blockchain: Kaspa (blockDAG, 10 BPS, targeting 100 BPS)
- Smart contracts: Deployed on Kaspa L2 (Igra mainnet)
- Oracle: Custom, 13-exchange weighted median with arbitrage simulator
- Marketing website: Next.js 16 App Router, React 19, TypeScript strict, Tailwind 4
- App: https://app.kaskad.live/
- Documentation: https://docs.kaskad.app/docs

## Pages Directory

- [Home](https://kaskad.app/) — Protocol overview and key features
- [Protocol](https://kaskad.app/protocol) — How lending / borrowing works on Kaspa
- [Tokenomics](https://kaskad.app/tokenomics) — $KSKD design: epochs, voting, incentives, treasury
- [Simulator](https://kaskad.app/simulator) — Interactive Kaspa DeFi TVL / FDV / price projections
- [Oracle](https://kaskad.app/oracle) — How the oracle aggregates prices
- [Oracle Dashboard](https://kaskad.app/oracle/dashboard) — Live WebSocket price feeds
- [About](https://kaskad.app/about) — Roadmap, core team, partners, legal entity
- [FAQ](https://kaskad.app/faq) — Frequently asked questions
- [Content Hub](https://kaskad.app/content-hub) — Video tutorials and guides
- [Contact](https://kaskad.app/contact) — Get in touch
- [Legal](https://kaskad.app/legal) — Terms of Use v1.0
- [Waitlist](https://kaskad.app/waitlist) — Early access signup
- [App](https://app.kaskad.live/) — Live mainnet deployment (off-domain)
- [Documentation](https://docs.kaskad.app/docs) — Full technical documentation (off-domain)

## FAQ (verbatim)

### General

**Q: What is Kaskad?**
A: Kaskad is a decentralized lending and borrowing protocol built on the Kaspa blockchain. It allows users to deposit $KAS as collateral and borrow stablecoins like USDT and USDC without selling their assets.

**Q: How does Kaskad work?**
A: Kaskad uses smart contracts to lock your $KAS as collateral. You can then borrow stablecoins against this collateral. Interest rates adjust dynamically based on supply and demand. You retain ownership of your KAS throughout the process.

**Q: Is Kaskad custodial?**
A: No. Kaskad is fully non-custodial. Your funds are managed by smart contracts — we never hold your assets, and they cannot be frozen or seized by anyone.

**Q: What wallets are supported?**
A: Kaskad supports Kaspium, Kastle, and Kurncy wallets. More wallet integrations are planned for future releases.

**Q: What are the gas fees?**
A: Gas fees on Kaspa are extremely low — typically under $0.01 per transaction. This is one of the key advantages of building on Kaspa's blockDAG architecture.

### Risk

**Q: Can I lose my $KAS?**
A: Your KAS can only be liquidated if your Health Factor drops below 1. This happens when the value of your collateral falls significantly relative to your loan. Kaskad provides alerts at Health Factor 1.5 to help you manage risk.

**Q: What is the Health Factor?**
A: The Health Factor is calculated as: (collateral value × liquidation threshold) / loan value. A Health Factor above 1 means your position is safe. Below 1 triggers liquidation. We recommend maintaining a Health Factor above 1.5.

**Q: What happens during liquidation?**
A: If your Health Factor drops below 1, a portion of your collateral is sold to repay part of your debt. A 5% liquidation fee applies. The remaining collateral stays in your position.

### Supplying & Earning

**Q: How do I earn interest?**
A: Deposit your $KAS into the Kaskad protocol. Your assets are matched with borrowers via smart contracts, and you earn interest continuously. Rates adjust dynamically based on utilization.

**Q: What APY can I expect?**
A: Supply APY typically ranges from 2-10%, depending on market conditions and utilization rate. With $KSKD incentives, effective yields can reach 12% or more.

**Q: Can I withdraw anytime?**
A: Yes. There are no lock-up periods. You can withdraw your deposits at any time, subject to available liquidity in the protocol.

**Q: What is the minimum deposit amount?**
A: The minimum supply amount is $100 equivalent in KAS. This ensures meaningful participation in the protocol's incentive system.

**Q: How is my interest calculated?**
A: Interest accrues continuously based on the current supply rate, which is determined by the utilization ratio of the lending pool. Higher utilization means higher rates for suppliers.

### Borrowing

**Q: How much can I borrow?**
A: The maximum borrow amount depends on your collateral value and the Loan-to-Value (LTV) ratio. For $KAS, you can typically borrow up to 70% of your collateral value, though we recommend staying under 50% for safety.

**Q: What stablecoins can I borrow?**
A: Currently, you can borrow USDT and USDC. Additional assets are planned for V2.

**Q: How do I repay my loan?**
A: Repay at any time, partially or fully. Simply send the borrowed amount plus accrued interest back to the protocol. Your collateral is unlocked proportionally as you repay.

**Q: What is the borrowing interest rate?**
A: Borrowing rates are dynamic and based on pool utilization. Rates typically range from 3-8% APR. The exact rate is visible in the app before you confirm a borrow transaction.

### Liquidations

**Q: How does liquidation work?**
A: When your Health Factor drops below 1, liquidators can repay a portion of your debt and receive your collateral at a discount (5% fee). The protocol uses the oracle's real-time price feed to determine liquidation triggers.

**Q: Can I avoid liquidation?**
A: Yes. Monitor your Health Factor regularly and add collateral or repay part of your debt if it approaches 1. Kaskad sends alerts at Health Factor 1.5. We recommend maintaining a ratio above 2 for safety.

**Q: What is the liquidation fee?**
A: The liquidation penalty is 5% of the liquidated collateral. This incentivizes liquidators to maintain protocol health while keeping the penalty reasonable for borrowers.

**Q: Who performs liquidations?**
A: Liquidations are performed by automated bots and protocol participants. Anyone can trigger a liquidation when a position's Health Factor drops below 1.

**Q: How quickly can liquidation happen?**
A: Thanks to Kaspa's 10 blocks-per-second architecture, liquidations can be detected and executed in under 1 second. This speed helps protect both borrowers and the protocol.