Last week, we saw a significant number of new Kaspa ecosystem updates, including protocol audit reports and the launch of new test networks. In this report, we examine the technological impact that these new launches will have on Kaspa and its community. This is a testament to Kaspa's potential to become the ultimate world sequencer for all L1s and L2s one day

Following Moonbound, Zealous Swap Audit Complete

Hexens just audited Zealous Swap's smart contracts! Hexens is a leading cybersecurity firm with over 130 full-scope Web3 audits under its belt, including such projects as Polygon, Lido, LayerZero, 1Inch, and more. The team specializes in infrastructure security, zero-knowledge proofs, advanced cryptography, DeFi protocols, and NFTs. Their assessments have uncovered nearly one critical vulnerability per review on average—saving Web3 projects billions of dollars over the years.

On June 11, 2025, Hexens published the results of their security review of Zealous Swap, the first AMM-based DEX built on Kaspa. The audit spanned two weeks and covered five smart contracts. During the review, Hexens identified one high-severity and five medium-severity issues, along with two low-risk and two informational items. Impressively, 100% of the reported vulnerabilities were promptly addressed and resolved by the Zealous team.

In their final remarks, Hexens wrote: "We can confidently state that both the security and overall code quality of the protocol have significantly improved following our audit."

We're thrilled to see this milestone and look forward to the official launch of Zealous Swap. 

MoonBound Audit by Hexen

Moreover, it's important to note that Hexens also audited Zealous Swap Partner, Moonbound. Moonbound is a decentralized platform preparing for a fair launch on Kaspa, utilizing bonding curve mechanics to create a transparent and equitable approach to launching and trading tokens. It will be the first fair-launch-only token platform on the Kaspa network, with a mission to offer "transparency, fairness, and liquidity to both token creators and users."

One of its defining features is a 10% wallet cap, which ensures no single wallet can hold more than 10% of a token's supply. The platform also integrates Sybil Protect with upgraded Sybil resistance to prevent exploitative behavior. Seventy-five percent of each token's total supply is allocated to the bonding curve, while the remaining 25% is reserved to provide liquidity after graduation. Once a token "graduates" from the bonding curve, the curve is permanently disabled, and the token becomes tradable on Zealous Swap. Moonbound is designed to be open-access, allowing anyone to launch a token, and includes optional UI filters to keep explicit content off public feeds while maintaining on-chain censorship resistance.

The audit reported one critical vulnerability, three medium-severity issues, three low-severity issues, and six informational findings. The Moonbound team has since addressed all identified issues. Complete documentation and the audit report are available to the public.

Zealous Swap Withstands DDoS Attack

In other Zeaous Swap news, the protocol proved its resilience this week by successfully handling a massive DDoS attack involving 17 million requests—all without experiencing a single millisecond of downtime. The attack lasted roughly seven minutes, but thanks to the platform's robust architecture, Zealous Swap continued to operate seamlessly throughout. This incident is not only a testament to the platform's infrastructure and security measures but also reinforces confidence in Kaspa's first decentralized exchange as it scales.

For a closer look, you can view the HTTP traffic and request logs from the incident here.

Beta 7 Live on the Kasplex Testnet

On June 14, 2025, Zealous Swap launched Beta 7 on the Kasplex Testnet, bringing a wave of enhancements to the platform. This latest version introduces a new portfolio page, support for Spanish and French languages, a sleeker user interface, and a range of bug fixes designed to enhance overall performance and usability.

As of June 15, 2025, the testnet is thriving with 229 active liquidity pools, boasting approximately 160K USD in total value locked (TVL) and around 115K USD in trading volume—all in test tokens, of course. Users can stake in the Infinity Pool and the Nacho Pool or participate in yield farming to earn additional rewards. Test tokens currently available on the faucet include tZEAL, tNACHO, tKANGO, tKASPER, tKASPY, tBURT, tKREX, and tGHOAD.

Additionally, the Zealous Swap testnet is incentivized and will airdrop 4,800,000 ZEAL to testers during the first week of the mainnet launch. Additionally, according to a recent reply on X, Zealous Swap will also run on the Igra Labs testnet once it goes live. 

To learn more about how to use the testnet, check out this video by CryptoPumpz. You can also explore the testnet and try out the new features here: https://kasplex-testnet.zealousswap.com/. 

Peer-to-Peer Encrypted Messaging on Kaspa 

A new open-source messaging tool has entered the Kaspa ecosystem: Kasia, now in beta, is a fully peer-to-peer, end-to-end encrypted communication platform built directly on the Kaspa network. The project enables users to send secure messages and files without relying on centralized servers—keeping true to the decentralized ethos of Kaspa.

Kasia supports encrypted messages, encrypted file transfers up to 10kb, and backup/export tools so users can safeguard their message history—especially important in light of Kaspa's pruning mechanism. Just 10 KAS is enough to send hundreds of thousands of messages.

To initiate a conversation, users must complete a "handshake"—a special transaction that costs 0.2 KAS plus fees. If accepted, the 0.2 KAS is refunded, and all future messages only incur minimal fees based on length.

While the platform is already functional, the team emphasizes that this is an early release and Kasia should not be used as a primary Kaspa wallet at this time.

The project is fully open-source and available on GitHub, with a live version now accessible at kasia.fyi. Thanks to @Auzghosty for sharing. We're excited to see where Kasia goes next.

SEC Chairman Clarifies PoW Not a Security

At the Crypto Task Force Round Table in Washington, D.C., on June 9, 2025, SEC Chairman Paul Atkins made a landmark statement: proof-of-work networks are not subject to federal securities laws. This marks a significant departure from the stance of former SEC leadership and signals a more favorable regulatory outlook for decentralized networks such as Kaspa.

"I am grateful to the Division of Corporation Finance staff for clarifying its view that voluntary participation in a proof-of-work or proof-of-stake network as a 'miner,' 'validator,' or 'staking-as-a-service' provider is not within the scope of the federal securities laws," Atkins said.

For Kaspa holders in the United States, this is a major win—affirming the legitimacy of mining and network participation in one of the world's most closely watched regulatory environments.

Good Ol’ Igra Labs News

In a recent update, Igra Labs shared that their Head of Engineering, @woods_wandererr, successfully merged a feature into Paradigm’s Reth client. The modification allows for deterministic block building on Kaspa L1—independent of the L2 head or canonical head. This is a crucial innovation for Igra’s L2, which requires block production on every Kaspa L1 block, no matter the state of the L2.

This update not only supports Igra’s own infrastructure but could prove valuable for any project needing predictable block construction logic across shifting network conditions. You can check out their GitHub for the latest developments, and don’t miss our interview feature:  An Igra Labs Interview: A Bright Kaspa Future and a Dark Bitcoin Past.

The Kaspa Experience Event 

The Kaspa Alliance for Transparency—an initiative launched by the Nacho team—is proud to present The Kaspa Experience, a major community event set to take place on September 13, 2025, at Atelier Gardens in Berlin, Germany. Designed to showcase the real-world utility of the Kaspa network, the event will feature a fully immersive peer-to-peer economy, where all food, drinks, merchandise, and products will be available exclusively for purchase using KAS.

The gathering is expected to draw more than 400 members of the Kaspa community, including developers, creators, builders, and supporters from around the world. Confirmed vendors already include Rock the Kaspa, with additional names to be announced in the coming weeks.

The speaker lineup will feature notable voices in the ecosystem, including Kaspa researcher and KEF grantee Elliott (@Elimmea), the marketing lead at Kasplex, @Kaspador, and others who will share insights on the future of Kaspa and its growing use cases.

In addition to networking, panels, and vendor experiences, the event will also host a Kaspa Product Showcase Competition, where the winning project will receive a $10,000 prize to further its development within the Kaspa ecosystem.

General admission tickets are priced at 150 USD or include 75 in KAS cashback to be spent at participating vendors during the event.

The Kaspa Experience is not just a celebration—it's a live demonstration of decentralized value exchange in action. The event represents another strong step forward in the ongoing work of the Nacho team and the broader Kaspa community.

For updates and ticket information, follow @KaspaAlliance on X and stay tuned to KASmedia for continuing coverage.

Solving the Oracle Dilemma

Kaspa researcher and KEF grantee Elliott (@Elimmea) recently shared two thought-provoking posts on X, highlighting a key vulnerability in the design of price oracles for smart contracts.

Oracles serve a critical function by feeding off-chain data—like asset prices—into on-chain environments. Since blockchains can't access external data on their own, oracles make many decentralized applications possible, especially in areas like finance and lending.

However, Elliott points out that most oracles rely on a fragile assumption: that at least 50% of data providers are honest. If that threshold is not met—due to collusion, manipulation, or even unintentional errors—the system can return incorrect prices. As he puts it, "All oracles, to my knowledge, rely on an assumption A1: at least 50% of data providers are honest. If this assumption is violated, the output will be garbage."

This design risk poses a serious threat to the integrity of smart contracts that depend on accurate price feeds. Elliott's commentary is a timely reminder that oracles are not just passive tools—they are critical components of trust that must be secured and scrutinized like any other part of the decentralized stack.

As DeFi and tokenized systems continue to grow, the resilience of the oracle layer will become increasingly crucial in protecting users and ensuring system stability.

Be sure to read through Elliott's posts here and here, and follow him to learn more about oracles. 

KEF Sponsors Lattice-Based Cryptography Series

Are you curious about quantum-safe cryptography and the future of zero-knowledge proofs? Kaspa Ecosystem Foundation (KEF) is sponsoring a new Lattice ZK series hosted by @coset_io. This Chinese-language course runs from June 16 to July 27, 2025. It offers a hands-on introduction to lattice-based cryptography—a cutting-edge approach that's powering the next generation of secure, post-quantum cryptographic systems.

Lattice problems form one of the strongest known foundations against quantum attacks, offering robust alternatives to traditional cryptographic schemes based on elliptic curves and pairings. In addition to enhanced security, lattice cryptography is enabling powerful innovations in zero-knowledge primitives, including Fully Homomorphic Encryption (FHE), Attribute-Based Encryption (ABE), Functional Encryption (FE), and Indistinguishability Obfuscation (IO).

With NIST advancing lattice-based algorithms for standardization, now is the perfect time to explore this emerging field. Apply to attend here and be a part of the quantum-secure future of cryptography!

Kaspa Crescendo Event in India

Kaspa Ambassador Amit Sharma hosted a Kaspa Crescendo party in MamaMia, Indore, India, on June 8, 2025, from 4:30 - 7:30PM IST. This meetup brought together Kaspa developers and innovators with those who were curious about Kaspa. 

Sharma praised the event, stating that the event featured the “latest updates, upcoming initiatives, and incredible community vibes.”