Kaspa Blockchain & Its L2 Ecosystem - Projects You Need to Know About
Introduction This isn't a distant dream, it's a reality, projects are being built within the kaspa ecosystem. In this article, we’ll walk you through Kaspa’s journey into Layer2. Will help you to understand what Kaspa blockchain is, introduce real projects building within the ecosystem, and break it down why L2 matters. What Is Kaspa & Why It Needs an L2 What is kaspa? Kaspa is primarily a Layer 1 blockchain, designed to offer a fast, scalable and decentralized network for transactions and data processing, while maintaining Proof-of-Work security. Key Features of Kaspa BlockDAG Architecture: Uses a parallel block structure (as opposed to a linear chain) for high throughput. GHOSTDAG Protocol: A Proof of Work-based consensus that secures this parallel structure, enabling both speed and security. Proof-of-Work Security: Maintains the decentralized security of Bitcoin but achieves much higher block rates. High Block Rates: Processes many blocks per second, resulting in fast, near-instant transactions. Fair Launch: Kaspa was launched without a pre-mine, ICO, or pre-allocated coins, aiming for a fair and community-driven distribution. KAS Token: KAS is the native coin of the Kaspa ecosystem, used for on-chain transactions and to reward miners. Simple UTXO Model: Kaspa adopts Bitcoin's familiar Unspent Transaction Output (UTXO) model, which contributes to its simplicity and robustness. How does Kaspa blockchain work? Kaspa functions as a BlockDAG (Directed Acyclic Graph) built on a proof-of-work (PoW) consensus mechanism, using the PHANTOM GHOSTDAG protocol to allow multiple blocks to be created and ordered in parallel rather than being discarded as "orphans" in traditional linear blockchains. This architecture enables Kaspa to achieve high block rates, fast confirmations, and scalable throughput, while maintaining security, a Bitcoin-like UTXO model, and a fair, open-source, and decentralized network. Here’s a breakdown of how it works: Parallel Blocks: When multiple blocks are mined at the same time, the GHOSTDAG protocol does not discard them as "orphans" like in a linear blockchain. Block Creation: Miners solve Proof-of-Work puzzles, creating new blocks that contain transactions. Integration: Instead, the protocol integrates these parallel blocks into a larger BlockDAG, allowing them to coexist and be ordered by consensus. Security & Scalability: This process provides the security guarantees of Proof-of-Work while also improving scalability and achieving instant transaction finality. Benefits of using Kaspa blockchain Faster Transactions: Enables high block rates for faster transaction processing. Increased Security: Integrates parallel blocks to enhance security and reduce attack vectors. Scalability: Solves the scalability limitations of traditional blockchains by processing blocks in parallel. Community-Driven: Governed and developed by a decentralized community. However, like many chains with strong throughput, Kaspa’s native Layer1 lacks full support for smart contracts and more complicated decentralized finance (DeFi) features, That's why Kaspa blockchain introduced Layer-2 solution called Kasplex. It launched in open beta with the KRC-20 token standard on June 30 2024, and its mainnet went live on August 31 2025, enabling smart contract functionality. Kaspa blockchain Layer-2 Ecosystem The Kaspa Layer2 ecosystem, primarily led by the Kasplex L2 based rollup, is defined by its ability to add Ethereum Virtual Machine (EVM)-compatible smart contracts to Kaspa's high-speed Layer1 BlockDAG network. This solution expands Kaspa's functionality from a pure payment network into a programmable ecosystem for decentralized applications (dApps) and decentralized finance (DeFi). For Kaspa, Layer2 lets developers do things that Layer1 alone can’t. The Key aspects of the Kaspa Layer-2 ecosystem Core architecture: The based rollup model The central feature of the Kaspa L2 ecosystem is its adoption of a "based rollup" architecture with Kasplex L2, which relies on Layer 1 for security and ordering. Kaspa Layer1: Sequencing and data availability, Unlike traditional rollups that use their own sequencers, Kasplex L2 leverages Kaspa's L1 for the crucial steps of transaction sequencing and data availability. Kasplex Layer2: Execution and state update.,The Kasplex Layer2 protocol operates as an off-chain indexer. It scans the Kaspa L1 for transactions containing EVM bytecode, executes the code in the L1-determined order, and updates its state accordingly. Public verifiability. Since all EVM smart contract logic is initiated by data embedded on the public Kaspa L1, the execution on the L2 is publicly verifiable. Key mechanisms and user interaction The ecosystem offers two primary methods for users to interact with Layer2 smart contracts. Canonical submission: Users can send transactions directly to the Kaspa L1 using a compatible Kaspa wallet. This is the most direct and decentralized method, without relying on any intermediary. Proxied submission: For convenience and compatibility with standard EVM tooling like MetaMask, users can submit transactions via a third-party relayer. The relayer forwards the transaction to the Kaspa L1 and ensures it is anchored before processing. While user-friendly, this method introduces reliance on the relayer. Primary solutions and expansion The Kaspa Layer2 landscape includes several projects and proposals aimed at expanding the network's capabilities. Kasplex L2: The most developed L2 solution, which launched its mainnet in August 2025. It provides full EVM compatibility, opening the door for DeFi, NFTs, and other dApps. Sparkle: A more theoretical "Layer 1.5" solution that aims to use zero-knowledge (ZK) proofs. Its tight integration with Kaspa's base layer would allow complex off-chain computations while minimizing overhead. ZK-proofs could also enable privacy-preserving applications. Why Kasplex Layer2 was introduced The Kasplex Layer2 solution was introduced to unlock new possibilities for the Kaspa ecosystem. Let's break it down here. Kaspa Layer1 limitations: The Kaspa Layer1, powered by its BlockDAG architecture, is fast and scalable but does not support native smart contracts. This limitation is similar to Bitcoin and other UTXO-based systems. Enabling programmable applications: With Kasplex Layer2, developers can now build decentralized applications (dApps), launch DeFi protocols, and even deploy NFTs all of which were previously difficult to achieve on Kaspa. Shifting Kaspa into a programmable ecosystem: Instead of functioning solely as a payments network, Kaspa can now evolve into a fully programmable blockchain ecosystem with diverse use cases. Rollup efficiency for scalability: Kasplex Layer2 operates as a rollup. Kaspa’s Layer1 ensures transaction sequencing and data availability, while Kasplex Layer2 handles complex computations. This division increases both efficiency and scalability for the network. How does Kasplex Layer2 Works Transaction Submission: Users submit transactions to Kaspa Layer1, which includes the necessary EVM bytecode, A low-level, compiled machine language that the Ethereum Virtual Machine (EVM) executes to run smart contracts on the blockchain. Sequencing by Layer1: Kaspa's high-throughput BlockDAG architecture sequences these transactions. Off-chain Computation: The Layer2, Kasplex executes the smart contracts off-chain. On-chain Settlement: Batches of transactions and their proofs of validity are committed to Kaspa Layer1 for final settlement and security. Benefits of Kasplex Layer2 Smart Contract Functionality: Enables the creation and execution of smart contracts, moving beyond Kaspa's initial payment-focused design. Scalability: Offloads computational load to the Layer2, allowing Kaspa Layer1 to focus on transaction ordering and data availability. Developer Onboarding: Its Ethereum Virtual Machine (EVM)-compatible nature makes it easier to port existing dApps and attract developers to the Kaspa ecosystem. DeFi Readiness: Opens the door for the development of DeFi applications like automated market makers (AMMs), lending/borrowing platforms, and stablecoins. Enhanced Utility for $KAS: Using $KAS as the native gas token for Kasplex L2 helps to retain economic alignment and utility within the Kaspa ecosystem. Challenges and risks Indexer centralization: The Kasplex Layer2 system depends on off-chain indexers to execute EVM bytecode. If the indexer network is not decentralized, there is a risk of misbehavior, such as presenting a false state. Layer1 reorganization: Kaspa's BlockDAG, while fast, can experience reorganizations in recent blocks. This can force L2 applications to revert and re-execute transactions, which adds complexity for developers. Relayer trust: The proxied submission method, while convenient, introduces a point of centralization and trust dependency on the relayer. Note; EVM-compatible in kaspa means that Kaspa can run smart contracts written for Ethereum with minimal changes. This enables developers familiar with Ethereum's tools and Solidity to deploy decentralized applications (dApps) on Kaspa, leveraging its high transaction speed and DAG architecture for scalable and interoperable smart contract functionality. Projects built on kaspa layer2 ecosystem Here’s a breakdown of the innovative projects shaping the Kaspa Layer 2 ecosystem, grouped into four categories; DEXes, Wallets, Launchpads, and On-chain Analytics tool. DEXes (Decentralized Exchanges) These are platforms that allow users to trade crypto directly on-chain without relying on a central authority or intermediary. DEXes built on Kaspa Layer2 enable fast, secure, and low-cost token swaps, liquidity pools, and potentially yield farming opportunities. The following are the projects built on the kaspa layer2 Kasplex Audit Report: RD Auditors 🔶 Zealous Swap, @ZealousSwap Zealous Swap is the first Automated Market Makers (AMMs),It aims to be the cornerstone of decentralized trading on the Kaspa ecosystem, providing a secure, efficient, and user-friendly platform for token swaps and liquidity provision.zealous swap mission is to build sustainable DeFi infrastructure that grows alongside the Kaspa ecosystem, focusing on deep liquidity, capital efficiency, and accessible user experience for all participants. Key features of Zealous swap NFT-based fee system - Rewarding early adopters with reduced trading fees V2 AMM Architecture - Ensuring reliable and deep liquidity from day 1 Protocol Sustainability - Built-in insurance fund and protocol-owned liquidity Modular Fee System – Flexible per-pool fee configurations to optimize for strategy, volatility, and community goals User-Friendly Interface - Making DeFi accessible to everyone Insurance fund for security About Zealous swap token. Zealous Swap has a live token (ZEAL), You can trade $ZEAL token on CoinEx centralized crypto exchange, and on its own DEX zealousswap more details about the project check out on coingecko/zeal You can buy and trade ZEAL/USDT on decentralized exchanges like Pancakeswap V2 (BSC), Maestro Bot, KyberSwap, BasedBot, and MEXC DEX+. ZEAL Price About the team Zealous Swap is built by a dedicated team with experience in blockchain and decentralized finance. Led by Louis Saad and Ramy Lahoud, we are focused on creating a decentralized exchange that supports the growth of the Kaspa ecosystem. Direct links about the project Website: Zealous Swap DEX: app.zealousswap X/twitter: @ZealousSwap Whitepaper: ZealousSwap paper Documentation; Zealous-swap 🔶 KSPR BOT & Wallet, @KsprBot KSPR Bot is a gateway to the Kasplex protocol, enabling users to create ,deploy, mint, manage and transfer/trade KRC20 tokens (Kaspa's token standard) effortlessly. Designed for both beginners and developers, the bot is incredibly easy to use, even with zero technological or blockchain background. About the token The native token for the KSPR Bot is $KSPR currently available on solana geckoterminal/Solana and BNB blockchain. Traded pairs and where to buy $KSPR You can buy and trade KSPR/BNB on Binance smart chain decentralized exchanges such as Four.meme, Maestro Bot, KyberSwap, and BasedBot. You can buy and trade $KSPR/SOL on solana decentraced training like Heaven, Maestro Bot, Soul Sniper, Jupiter, and Phantom. The KSPR Wallet Chrome extension is live and can be used for storing KRC20/KRC721 tokens and $KAS, but the direct swap feature via smart contracts is not yet available, it will be activated once smart contracts are live on Kaspa with the first Layer2. What to Expect with the Swap Feature Direct swaps: The wallet is designed to facilitate direct swaps of tokens by connecting to smart contracts. Kaspa ecosystem integration: This wallet aims to be a leading solution not only within the KRC ecosystem but also across the broader Kaspa ecosystem as Layer2 become available. Links DEX: kspr.exchange Website: kspr-bot Whitepaper: kspr-paper X: @KsprBot 🔶 KaspaCom, @KaspaCom KaspaCom is the Leading DeFi Platform -DEX, empowering users to swap, lend, borrow, and trade NFTs with full control and security. And the upcoming native token is the $KCOM token- no details about the token. Links Website : kaspaCom X : @kaspaCom Documentation : kaspaCom Swap tokens: dev-defi.kaspa.com/swap Lend & Borrow: dev-defi.kaspa.com/lending Audit: RD Auditors 🔶 Seaswap, @SeaSwapXYZ SeaSwap is the first Dex aggregator built for Kaspa L2s, optimizing your trades across all DEXs for better execution and lower costs. Seaswap is live on the @Kasplex Mainnet, officially launched on October 1, 2025. Token status is unknown. Seaswap Roadmap Links DEX: app.seaswap Audit: RD Auditors Website: seaswap Docementation: Seaswap-paper X: @Seaswap 🔶 KaspaFiance, @KaspaFinance KaspaFinance is the first full-suite decentralized finance protocol deployed on the Kaspa EVM (Kasplex L2), bringing scalable, composable, and intelligent DeFi to the world’s fastest Proof-of-Work blockchain. KaspaFinance officially launched on Mainnet on September 26, unlocking ultra-fast DeFi, AI-powered KasBot trading, and multi-reward farming at world-class speed on the fastest Proof-of-Work blockchain. Links Whitepaper: Kaspa-finance Website: kaspafinance DeFi: app.kaspafinance Audit: RD Auditors Wallets Wallets are applications that let users securely store, send, and receive their digital assets. On Kaspa Layer2, new wallets are being developed for both desktop and mobile, designed to integrate seamlessly with dApps, DEXes, and other ecosystem tools. 🔶 Kastle Wallet, @KastleWallet Kastle is the secure and user-friendly Kaspa wallet to send, receive, and manage your assets with ease. Be the king of your own Kastle. The Kastle wallet is available as a browser extension and also has dedicated mobile apps for Android and iOS. Links Website: kastle wallet Chrome web store: browser extension Documentations: docs.kastle X: kastlewallet 🔶 Kurncy Wallet @kurncysolutions Kurncy Wallet is a secure, non-custodial cryptocurrency wallet designed specifically for Kaspa and its ecosystem. It supports Kaspa native tokens, KRC-20 tokens, and KRC-721 NFTs, with planned support for upcoming Kaspa Smart Contracts. The Kurncy Wallet is available on App Store and Google Play. Links Website: Kurncy wallet Launchpads Launchpads serve as platforms where new projects can launch their tokens facilitating fundraising and token sales through initial offerings like Initial DEX Offerings (IDOs) or Initial Exchange Offerings (IEOs). These platforms offer projects capital, visibility, and marketing support, while providing investors early access to new tokens, often at discounted rates, and a degree of security through vetting processes. 🔶 Moonboundgg @moonboundgg Pumpfun-like launchpad, Moonboundgg is the platform focused on creating a fair launch token within the Kaspa (KAS) ecosystem, deployed by the Nacho team. The platform has integration with Zealous Swap (token migrates to Zealswap if they hit the bonding curve). Links Website: Moonbound X: moonboundgg Other (On-chain analytics) These are platforms that provide insights into the Kaspa blockchain’s data, such as transaction flows, wallet activity, liquidity movement, and ecosystem health. Analytics tools are crucial for both developers and investors to make informed decisions. 🔶 Kasundercom, @kasundercom Kasundercom is an on-chain analytics tool for the Kaspa ecosystem. Its primary function is to provide greater transparency by visually mapping and analyzing transaction flows and address relationships. The platform provides the real-time data of token wallets, transactions, and dominance metrics. Final thoughts Kaspa’s L2 ecosystem is no longer just a dream, it’s shaping up in real time. From Zealous Swap’s DEX infrastructure to Kastle´s bridging wallet, Moonboundgg launchpad, Kasundercom analytics, the ecosystem is laying the foundation for real DeFi. If you're new to crypto or just exploring chains, Kaspa offers a fresh playground fast, transparent, and full of opportunity. Dive in and do your own research on these projects, and be part of building the future. If you have a project and interested in getting your smart contracts, website, protocol, bridge, wallet or backend audited, kindly get in touch with us for a quote. https://www.rdauditors.com/get-audit
What if Kaspa, once known mostly as a fast payment or Proof of Work chain, becomes a full DeFi powerhouse? Imagine trading, launching tokens, analyzing wallets all natively on Kaspa’s L2 infrastructure.
