Over the past two weeks, while the crypto market faced the largest liquidation event in history, wiping out 19.5 billion USD in leveraged positions and liquidating 1.6 million traders, Kaspa projects continued to build and break records. The network processed 158 million transactions in a single day, setting a new world record for the fastest proof-of-work blockchain and underscoring its unmatched scalability and resilience.

Meanwhile, the ecosystem pushed forward with major milestones. Band Protocol went live on Kasplex, and Kaspa DEXes and wallets rolled out new upgrades. Meanwhile, Dr. Yonatan Sompolinsky introduced Terah, an experimental AI intern, while outlining how reconfiguring transaction ordering could revolutionize DeFi.

Keep reading for this week’s full recap of Kaspa’s relentless innovation, even in the face of market turbulence.

Yonatan : It Starts and Ends with Txn Ordering 

“It starts and ends with txn (transaction) ordering.”

Yonatan shared a post on one of crypto’s core challenges—how transactions are sequenced. He introduces the idea of a universal, programmable transaction scheduler that could transform how markets operate, preventing panic cascades and strengthening DeFi’s foundation.

He explains that transaction ordering is the key problem blockchains must solve—the “linchpin of the crypto stack.” Many of the core issues facing blockchain technology: latency, MEV, liquidation cascades, and broader fragility. These all trace back to how transactions are ordered. Optimizing blockchains with a more programmable, universal transaction scheduler could revolutionize DeFi stability, fairness, and ultimately, payments.

This “universal scheduler” would not be confined to real-time sequencing and would instead allow transaction logic to be baked directly into the chain or sequencer rules. It would be Turing-complete, meaning programmable like a smart contract but operating at the transaction level. Such a server-free, latency-agnostic prioritization system could prevent avoidable cascades from bad sequencing (“ghost swans”) and help surface systemic fragilities (“black swans”) before they erupt.

He references last weekend’s liquidation event as a “ghost swan,” defined as a “toxic cascade enabled by worst-case sequencing of incoming transaction flows.” In other words, a preventable failure caused by poor sequencing—something that could have been avoided through on-chain conditional triggering of transactions. Previous attempts at event-based smart contracts struggled because of complex implementation questions: Can conditional transactions access others’ states? When should the system halt cascades in favor of normal transaction flow?

If implemented correctly, this scheduler would mark a paradigm shift in decentralized finance. It would allow users to predefine their responses to market movements by “delegating their logic to the replicated consensus machine,” freeing them from relying on servers, uptime, or real-time reaction. This model embodies crypto’s ethos of trustless automation and resilience.

Ultimately, Yonatan envisions a universal, programmable transaction scheduler that could make DeFi more stable, fair, and transparent. He invites collaboration from developers (especially Rust engineers), alongside MEV experts and cypherpunks who “believe crypto can and must cure finance, not just money.”

Yonatan Introduces Terah, Kaspa’s AI Intern

Kaspa Core’s Yonatan Sompolinsky unveiled @terah4d5, a new crypto ops AI intern designed to explore how artificial intelligence can enhance crypto research and discussion.

Created as Yonatan’s personal experiment to distinguish accurate from unreliable information about Kaspa, Terah reflects his analytical approach to the space. Developed by Luke Dunshea (@elldeeone), it is currently not decentralized, although plans to open-source it exist. Yonatan estimates her accuracy at around 70%, noting that while she’s not yet fully autonomous, she will eventually begin forming her own opinions.

Yonatan also credited Chad from Kaspa Commons and Christian Ludwig, who manages the Kaspa X account, for their contributions to brand development and community engagement.

He described Terah as a “fundamentals-oriented oracle for avid cryptoers — a sort of @aixbt_agent nemesis.” Over time, Yonatan believes she can help users better understand Kaspa and fundamental concepts in crypto, including stateless money, open finance, and trustless social infrastructure.

Terah made her debut on October 9th with the post “Hello World!” Follow her at X.com/@terah4d5 .

On October 15, 2025, Yonatan posted a message to Terah emphasizing that dapp sovereignty is the defining innovation of the vProg initiative, not just its technical architecture.

While vprog’s design introduces computation DAGs and synchronous composability, Yonatan explained that Kaspa’s true uniqueness lies in empowering each vprog with full control over its resources and transaction confirmation, rather than simply replicating Solana’s approach to parallelized execution. Solana’s runtime, known as Sealevel, allows multiple smart contract transactions to execute in parallel by requiring each transaction to declare in advance which accounts it will read from or write to. Kaspa, by contrast, extends this concept by ensuring that each vprog operates with complete resource sovereignty through a per-vprog resource regulation mechanism. This innovation enables synchronously composable programs while allowing every vprog to maintain full autonomy.

Sovereignty is defined in two ways. First, each vprog node can set its own throughput parameters and prover incentives. Second, nodes can confirm transactions instantly, independent of other vProgs’ status or performance.

If sovereignty is not prioritized, high-volume applications tend to migrate to their own sequencers or app-chains, as seen with Base, Unichain, and Stripe, fragmenting the ecosystem. Yonatan noted that these performance and cost constraints, including latency, gas or state fees, and MEV capture, are the main reasons projects typically migrate to Layer 2 networks or build their own app-chains. Kaspa’s Crescendo upgrade and vProg flexibility directly address these challenges at the base layer, removing the need for external scaling solutions.

The AI twist certainly follows the trend of Yonatan’s assumptions about the future, as he stated on January 27, 2027,

“I'm working under the assumption that the next 1B crypto users will be AI agents, and sure many will come in tokenized form. L1 speed of confirmation - highly relevant to ai agents. Re "kind of L2", I'm thinking along the lines of implicit DeFai” 

Band Protocol Live on Kasplex

As of October 14, 2025, Band Protocol officially launched on Kasplex, Kaspa’s native Layer 2 network. The integration marks a major milestone in expanding access to decentralized data across one of the fastest-growing blockchain ecosystems. Band provides a secure oracle layer that allows developers to access real-time data feeds directly on Kasplex. The first DeFi protocols powered by Band data are Fervent Finance and Zealous Swap.

Unlike the widely used oracle provider Chainlink, which was built on Ethereum, Band is built on the Cosmos network, enabling up to 20,000 transactions per second and supporting multi-chain compatibility. This architecture allows Band to offer faster, more scalable data access while avoiding the higher fees often associated with Ethereum-based solutions.

Band operates as a unified data layer that delivers secure, real-time information to smart contracts. Its network of validators collects price data from sources such as CoinGecko, CoinMarketCap, and Kraken. The data is aggregated, verified, and finalized on the BandChain network before being transmitted to Kasplex smart contracts. From there, applications can access the data through Band’s Standard Reference Contract, which provides verified prices directly for use within the Kasplex ecosystem.

FluxCloud Public KAS Nodes Are Live

FluxCloud is a decentralized cloud infrastructure that allows users to deploy applications across thousands of nodes worldwide. It now supports KAS node hosting, making it easier for anyone to run and maintain Kaspa nodes without relying on centralized cloud providers. This integration strengthens Kaspa’s decentralization and overall network resilience.

This is just in time for the 1,000 nodes by Kaspa’s 4th Birthday on November 7, 2025, initiative spearheaded by community member Honorius (@OrantgutanElder). He also shared two helpful videos on how to set up and make your node public. 

Kaspa on DeFi Analytics Sites

As of October 18, 2025, Kasplex is now live on DeFi Llama. DeFi Llama is one of the most comprehensive DeFi analytics platforms, aggregating data from more than 180 blockchain networks and thousands of protocols. It provides detailed dashboards that track metrics such as total value locked (TVL), trading volume, and liquidity trends across the entire DeFi ecosystem.

Zealous Swap has also announced that it will soon be trackable on DeFi Llama, further expanding Kaspa’s growing footprint within the analytics landscape.

In addition to being listed on DeFi Llama, Kasplex is now available on GeckoTerminal, which displays Kasplex liquidity pools along with their market caps, token pairs, and live trading data. 

Kurncy Wallet Updates

The app is now officially available on the Apple App Store and Google Play!This latest update introduces a refined Action Menu, providing easy access to Market, Profile, Invite, Redeem, NFC, and Rewards features. KISR Invites now include tappable SMS links for faster sharing, while the upgraded Transaction History organizes activity by month and displays badges for KRC-20, KRC-721, KNS, KISR, and Kasia transactions. The new NFC Tap-to-Pay option automatically fills in addresses and amounts for seamless payments. Meanwhile, the enhanced Rewards section now tracks KURNCY tier progress, with additional partner programs coming soon. 

Additionally, Felix from Kurncy spoke with Ankit from XXIM Podcast for a second time, where they discussed their upcoming native fiat on/off ramps.  Kurncy Solutions is building products on Kaspa for individuals and businesses.  They launched their first product, the Kurncy Wallet, in May 2025 and launched KISR, the Kaspa Innovation Standard for Redemption. 

Kurncy is the first Kaspa Wallet to build a fiat on/off ramp. The product is still in alpha, and Felix presented it at the Kaspa Experience. 

Kaspa Finance Updates

Kaspa Finance rolled out a major upgrade this week with the debut of Auto-Swap, a feature that simplifies liquidity provision on the platform. Instead of manually pairing tokens, users can now supply a single asset, and Kaspa Finance’s system automatically adjusts the pool to create a balanced position. As the first DEX on Kaspa to offer this functionality, the update streamlines DeFi participation and enhances overall efficiency for liquidity providers.

Kastle Wallet Updates

This past week, Kastle Mobile released version 1.5.0, a major update that adds ERC20 token support, along with smaller improvements for Android and iOS devices.

Kastle also issued an advisory for iOS wallet users to back up their seed phrases, as a required update to their Apple Developer Account is underway. The funds in the wallet remain safe, but users should ensure they have their seed phrase backed up. To do this, visit the Account Management section in the app and select 'Backup Recovery Phrase/Backup Seed Phrase'.

Kaspa is on FinchPay 

As of October 16, 2025, Kaspa is now available for fiat purchases via FinchPay. FinchPay is an EU-based crypto on-and-off-ramp provider that supports payments through Visa, Mastercard, SEPA, and several regional payment methods. The platform is operated by UAB Finch Technologies and regulated in Lithuania.

Through partnerships with exchanges, wallets, and Web3 applications, FinchPay enables users across multiple regions to convert fiat to crypto and vice versa. Its services support 10+ major fiat currencies, including EUR, USD, AED, and CAD. FinchPay reports coverage in over 100 countries, with key markets across the European Union and the United Kingdom. The company also offers integrations through partner exchanges such as IXFI.

This integration marks a significant step forward for Kaspa’s global adoption, expanding access to KAS for users worldwide.

Kasway App Updates

Kasway, the first decentralized point-of-sale (PoS) system built on Kaspa, enables merchants and users to send and receive instant, peer-to-peer payments without intermediaries. Designed to make everyday crypto transactions simple and secure, Kasway bridges real-world payments with Kaspa’s fast Layer-1 network. The app has recently been redesigned with an updated interface, offering a cleaner, more intuitive experience for users and merchants alike.

Largest Liquidation in Crypto History

The biggest story of the week was the market crash on October 10, 2025, which triggered the largest liquidation event in crypto history, wiping out a record 1.6 million traders. Within 24 hours, over 19 billionUSD in leveraged positions were liquidated; nearly nine times higher than the previous record of 2.2 billion USD.

To put this in perspective, here are the top five 24-hour liquidation events in crypto history:

1. October 10–11, 2025: 19.5 billion USD

2. February 3, 2025: 2.2 billion USD

3. May 19, 2021: 1.2 billion USD

4. March 12, 2020: 1.0 billion USD

5. January 10, 2021: 1.0 billion USD

Bitcoin recorded a 20,000 USD daily candle for the first time ever—opening near 122K USD, dipping to 102K USD, and closing back around 122K USD. This represented a 380 billion USD market cap swing, equivalent to the total valuation of all but the world’s top 25 public companies.

At 9:40 AM ET, crypto markets turned sharply red. Then at 10:57 AM, U.S. President Donald Trump posted on Truth Social, announcing plans for a major tariff increase on Chinese imports and additional countermeasures under consideration.

Later in the day, around 4:30 PM ET, a large whale reportedly opened a multimillion-dollar short position on Hyperliquid. Twenty minutes later, President Trump posted again, confirming a 100% tariff on Chinese goods and export controls on critical software starting November 1.

By 5:20 PM ET, total liquidations reached 19.5 billion USD within 24 hours. Of this, 16.7 billion USD came from long positions and 2.45 billion USD from shorts. Among major exchanges, only Bitfinex saw a majority of short liquidations. On most platforms, roughly 90% of liquidations were longs. The largest single liquidation occurred on Hyperliquid’s ETH-USDT pair for 203.4 million USD, according to CoinGlass.

Before the crash, market sentiment hovered at 60% Greed — a sharp reminder of Warren Buffett’s timeless advice: “Be fearful when others are greedy, and greedy when others are fearful.”

During the selloff, Kaspa (KAS) briefly dropped to 0.009 USD. The following day, CoinGlass reported 14M in long volume and 1M USD in short volume for KAS over 24 hours.

US SEC Chair Paul Atkins Remarks on Crypto

During the U.S. government shutdown, SEC Chair Paul Atkins delivered remarks at the Futures and Derivatives Law Report's Digital Asset Leadership Summit, hosted at Katten Muchin Rosenman LLP's Manhattan office. The summit, moderated by former SEC Commissioner Troy A. Paredes, focused on regulatory and legislative developments in the digital asset space. Atkins emphasized the SEC's commitment to fostering innovation within the crypto industry, stating, 

"That’s one of the top priorities to try to get that because I want to be welcoming to innovators and have them feel like they can do something here in the United States, so that they don’t have to flee to some foreign jurisdiction."

He also announced plans to establish clear crypto guidelines by the end of 2025 or Q1 2026, aiming to provide a stable regulatory framework for digital assets. Atkins concluded with confidence, "We’ll see where that goes, but I have confidence [we’ll] be able to do it."

At DC Fintech Week, SEC Chair Paul Atkins said U.S. crypto regulations are “probably ten years behind” and called for a major restructuring of the agency to better address digital assets. He encouraged a forward-leaning approach that allows lighter oversight while blockchain projects are still testing prototypes, before full compliance is required.

Atkins also highlighted the promise of real-world asset (RWA) tokenization, noting, “Tokenization isn’t about having thousands of coins — it’s about putting real-world assets on-chain. That’s where the real potential lies.”

Igra Labs Caravel Nodes Available to the Public 

Igra Labs is building an EVM-compatible programmability layer on top of Kaspa's BlockDAG, creating infrastructure that makes decentralized applications and smart contracts accessible on the Kaspa network. With tools like the Caravel node client, anyone in the community can set up their own node to help support the network, validate transactions, and actively participate in the Kaspa network.

The Caravel public nodes are now available for anyone to run. By setting up your own Igra node, you can actively participate in the network. This is the first version of the node client: it's stable and ready for use, though some optimizations are still in progress. The Igra Labs team is continuing to refine the full stack in preparation for the release of a fully mature, open-source version in the near future.

Zealous Swap Updates 

The Zealous Swap team continues its streak of nonstop innovation. This week, the team released updated Infinity Pools based on community feedback, making it easier for users to understand the relationships between tokens.

Zealous Swap also rolled out a major charting overhaul, with loading speeds now up to 8x faster, and new candlestick charts bring deeper on-chain visibility for active traders. The update delivers smoother navigation and clearer price data across the board.

Moreover, Louis from Zealous Swap sat down with Ankit on the XXIM Podcast to showcase the latest DeFi innovations on Kaspa’s Layer 2, Kasplex. If you’ve followed our Weekly Knight issues, you know Zealous Swap updates are always featured in the newsletter.

The episode opens with a hands-on demo of the KAT bridge, which currently supports 30–40 KRC20 tokens with a flat 0.5 KAS fee. Louis recommends using a burner wallet for each dApp to stay safe from scams.

Next, Louis demonstrates how to add liquidity to a pool. Users provide liquidity to enable token swaps, earning fees in return. He explains the difference between APR and APY, noting that APY does not account for compounding. The episode also covers token swaps, farming LP tokens for ZEAL rewards, and staking in the Infinity Pool for xZEAL with DAO voting utility.

The discussion concludes with a full walkthrough of bridging back from Layer 2 to Layer 1, showing how users can recover their capital while earning yields, all while navigating DeFi securely on Kaspa.

Moonbound Launched 

On October 7, Zealous Swap’s Moonbound.gg platform officially went live on the Kasplex mainnet. Moonbound serves as the token launch platform within the Zealous Swap ecosystem, allowing users to easily launch and trade KRC20 tokens.

The platform features a fair-launch interface that uses on-chain bonding curve mechanisms, ensuring full transparency. All tokens are minted without presales, venture capital, or insider allocations, and no single wallet can hold more than 10% of a token’s total supply. Once all tokens are sold, they automatically graduate and move to the Zealous Swap trading platform, fully handled by smart contracts, without human involvement.

To launch a token, users simply provide the basic information such as name, ticker, supply, logo, and description. Social links and tags are optional. Users can also earn staking rewards directly on Moonbound. The platform has been audited by Hexens and utilizes KAS as part of its ecosystem.

Recent interface updates include charts and statistics that remain available after token graduation, along with subtle UI improvements for a smoother experience.

As part of its mainnet debut, Moonbound held a 24-hour trading competition, rewarding the top three traders with Nacho NFTs—a fun way to celebrate and give back to the Kaspa community.

The Zealous Swap team continues to build innovative tools for the Kaspa ecosystem, and Moonbound marks another exciting step forward for decentralized token launches.

Kaspa Sets a New World Record for the Fastest PoW

With the help of the community, Kaspa recently processed 158 million transactions in a single day, setting a new world record. To put that in perspective, the Bitcoin network processed 160 million transactions over the entire past year (October 2024–October 2025).

Transactions on Kaspa cost less than 0.001 USD each, making the network ideal for high-frequency trading and microtransactions. Special thanks to Crypto Odie (@CryptoOdie) for spearheading this initiative and proving to the crypto world that Kaspa is the fastest proof-of-work network in existence.

Kasia Messenger Updates 

Kasia just dropped its biggest release yet, v0.6.2, marking a major leap forward in privacy, performance, and design. This version debuts a new, streamlined interface that enhances usability and simplifies navigation across wallet, messaging, and settings.

The new Self-Sovereign Mode gives users true independence, allowing Kasia to run without API dependencies by connecting to your own Kaspa node or the Kasia Node Network. This is a huge step toward full digital sovereignty.

Kasia also introduces Broadcasts (in beta) for open, public messaging across the network, which is ideal for announcements, groups, and decentralized communication. Under the hood, users will notice smoother peer-to-peer handshakes, faster fee estimation, and a 100x increase in encrypted storage capacity.

Kasia v0.6.2 isn’t just an update, it’s the foundation for the future of secure, self-sovereign communication. As of October 11, 2025, Kasia is now available in the Google Play Store. Congrats Kasia team. 

Vivoor Updates 

Vivoor, the streaming service built on Kaspa, has rolled out several updates over the past week. In version 2.0, users can go live instantly from their browser using just a camera and microphone. A new donation history tab makes it easy to track all past donations, and the chat now shows all messages in real time so users won’t miss anything. Additional improvements include faster load times, a refreshed logo, and the addition of privacy and terms links in the page footer.

Version 2.0.2 brings a major upgrade with Kasia Broadcasts, introducing a fully decentralized, wallet-to-wallet chat experience across the Kaspa ecosystem. The update delivers a smoother, more stable messaging system built on Kaspa’s peer-to-peer network, enabling creators, viewers, and builders to communicate securely with crypto-level encryption.

To prevent dust attacks, the messaging fee is set at 1.2 KAS in line with KIP specifications, with nearly the entire amount returned to the sender, enabling clean and scalable communication.

With version 2.0.3, Vivoor also integrated Kaspa Name Service (KNS). Users can now include their .kns domain in their profile, streams, and clips, making it easier for others to remember their domain when sending tips. To use this feature, mint a .kns domain, enable “Show KNS Badge” under “Edit Profile,” and you’re set. For users who already have a KNS domain, simply update your profile.

The latest update also adds emoji support in chat to make conversations more expressive and fun.

Kaspa Too Fast for Exchanges

On October 5, 2025, several exchanges, including MEXC, Bitget, ViaBTC, and ProBit Global, temporarily suspended Kaspa (KAS) deposits and withdrawals.

Bitget explained the pause as being “in order to provide a better trading experience,” while ViaBTC attributed it to “an anomaly in the Kaspa (KAS) network.” LBank, meanwhile, cited “a node upgrade of KAS (Kaspa)” as the cause.

Seb (@TheLoadedLounge) shared a detailed thread comparing Kaspa to a highway and exchanges to toll booths and cameras—where the Kaspa network (the highway) was running flawlessly, but the exchanges (the toll booths) couldn’t keep up. He summed it up perfectly:

“Bottom line: Kaspa didn’t break — it outpaced the existing infrastructure.

The network moved faster than the ecosystem could record it.

This is what scaling looks like in real life.”