Kaspa Ecosystem Project Surpasses $2 Million Total Value Locked

Kaskad Crosses $2M TVL Ahead of First Token Distribution

@AppKaskad, the lending protocol built on Kaspa's Layer 2, has surpassed $2 million in total value locked (TVL), marking a notable milestone as the platform approaches the close of its first liquidity epoch. The growth reflects a concentrated surge in both supply and borrow activity, with participants positioning themselves to qualify for the inaugural distribution of the native $KSKD governance token.

With approximately 13 days and 5 hours remaining at the time of publication, the window for participants to maintain qualifying positions before the epoch concludes and the $KSKD allocation closes is narrowing.

How Kaskad Works and Why the Epoch Matters

According to Kaskad's tokenomics page, the protocol runs on a roughly 30-day epoch cycle in which all on-chain activity, including supplying, borrowing, and voting, is measured to determine reward eligibility. To claim $KSKD incentives, participants must stake $KSKD and maintain a minimum supply uptime of at least 80% of the epoch. There is no passive yield pathway: rewards are strictly activity-gated.

Kaskad is a non-custodial, multi-asset lending protocol deployed on Igra, an EVM-compatible Layer 2 sequenced on the Kaspa L1 blockDAG via GHOSTDAG proof-of-work. Users can supply assets including USDC, USDT, iKAS, cbBTC, wETH, wstETH, and SOL into isolated per-asset liquidity pools, or borrow against collateral without surrendering ownership. Each pool operates its own utilization curve, with rates adjusting automatically to demand.

The $KSKD token sits at the centre of the protocol's incentive design. Per the project's fundraising page, the total supply is fixed at 1 billion tokens, and the token is intended to align suppliers, borrowers, governance participants, and long-term contributors. Kaskad generates protocol fees from lending activity, which are split between a DAO Treasury and an Operational Treasury to support ongoing development.

The $2 million TVL figure represents meaningful early traction for a protocol that launched its public mainnet with $250,000 in initial liquidity, according to reporting by AInvest. The Kaspa ecosystem is also undergoing broader infrastructure development, with the upcoming Toccata hard fork expected to introduce native KRC-20 tokens and zero-knowledge verification directly on the base layer.

Sources
Kaskad Tokenomics (kaskad.app)
Kaskad (KSKD) on CryptoRank
KAS Infrastructure Upgrade: Toccata Hard Fork and DeFi Expansion (AInvest)