Kas.fyi has officially severed its partnership with Chainge Finance following ongoing liquidity issues, user complaints, and a lack of transparency surrounding the platform’s cross-chain bridging solutions. This decision comes after months of reports about stuck transactions, depegging of wrapped assets such as wKAS and CUSDT, and a growing loss of confidence within the Kaspa community.
The Problem with Chainge Finance
Chainge Finance has been a key player in providing liquidity solutions for Kaspa wrapped assets on various blockchains. However, issues began surfacing as users reported an increasing number of transactions getting stuck in the bridging process, leading to uncertainty about fund recoverability.
One of the most concerning developments has been the persistent depegging of Chainge-issued tokens, particularly wKAS (wrapped Kaspa). According to a detailed report from Kaspa Daily, wKAS has failed to maintain its 1:1 peg to native Kaspa, with significant price deviations. This instability has raised red flags about the liquidity backing these assets and whether Chainge’s bridging mechanism has sufficient reserves to support conversions.
In addition to wKAS, the depegging of CUSDT (Chainge-issued USDT) has also sparked concerns, leading to fears of broader liquidity risks across Chainge Finance’s ecosystem. The lack of transparent communication from Chainge regarding these issues has further eroded user trust, as many have struggled to retrieve their funds or obtain clear explanations about the root causes of these failures.
Kas.fyi’s Decision to Cut Ties
Although Kas.fyi users were not directly impacted by the stuck transactions or depegging issues, the platform has taken proactive measures to protect its community. Effective immediately, Kas.fyi has delisted Chainge-issued assets from its KRC20 markets and ceased all integrations with Chainge Finance services.
Furthermore, the Kaspa community is being strongly advised to avoid using Chainge Finance products until their liquidity and transparency issues are fully resolved. Users who have been affected by stuck funds are encouraged to connect via Telegram and other community channels to organize and discuss potential solutions.
A Larger Issue of Cross-Chain Risks
This incident highlights the broader risks associated with cross-chain liquidity providers. When wrapped assets are issued on another chain, their stability depends entirely on the issuer’s ability to maintain adequate reserves and honor conversions. Without proper transparency, users are left vulnerable to potential failures, as seen in the ongoing wKAS depegging crisis.
The Kaspa community is now exploring alternative cross-chain solutions that offer greater transparency and security. As more users become aware of the risks tied to centralized bridging solutions, there is a growing push for decentralized, trustless alternatives to mitigate such vulnerabilities in the future.
What’s Next?
For now, Kas.fyi stance is clear: Chainge Finance products are too risky, and users should exercise extreme caution when dealing with them. The situation remains fluid, and further updates will be shared as more information becomes available.
In the meantime, impacted users are encouraged to stay connected with the community and explore alternative bridging solutions that prioritize security, liquidity, and transparency.
