One-click debt optimization by migration across lending protocols, powered by flash loans.

Problem DeFi users struggle to capitalize on fragmented lending rates:

Costly inefficiency: Interest rates vary wildly across protocols for long periods of time. Moving debt positions can help save users money on interest rates and equalize protocol rates, which is beneficial for liquidity providers.

Protocol loyalty traps: Users stick to one platform despite better rates elsewhere, wasting thousands in avoidable interest.

MEV for whales only: Flash loan arbitrage is reserved for bots and institutions, leaving retail users behind.

Solution Kapan Finance automates cross-protocol debt optimization for everyday users:

🔄 Atomic Debt Migration: Refinance loans between Aave and Compound in one transaction, using flash loans to eliminate upfront capital.

📊 Rate Compariso: Instantly surfaces the best borrow/supply rates for assets shared across protocols (e.g., USDC, ETH).

⚡ Arbitrum Alpha: Live on Layer 2 for fast, low-cost transactions (currently in alpha testing).

🔓 Non-Custodial & Permissionless: No deposits; users retain full control of their positions.

Impact Borrowing costs can be reduced up to 60% on some markets before applying incentive rewards.

Democratize MEV: Turn “extractive” flash loans into a public good for retail DeFi users.

Technical Differentiation Gas-Optimized Execution: Tightly integrated with Arbitrum’s low-fee environment.

Gitcoin Alignment Public Good: Traditional banks provide such utilities to retail users, but DeFi users currently are locked in or forced to migrate their debt to smart wallets in order to migrate, which locks them to a specific vendor. This project helps with this as it is agnostic of the type of address using it.

Ethereum-Centric: Built on Arbitrum, composable with Aave/Compound’s L2 deployments. Venus protocol to be added next.

Open Roadmap: Core contracts will be open-sourced post-audit.

Progress & Next Steps ✅ Current Status: Live alpha on Arbitrum (supply, repay, debt migration).

🚧 Next Phase:

Smart contract audit (Q3 2025).

Expand to Optimism, Base, and other Aave/Compound/Venus supporting networks.

Integrate rate alerts (e.g., “Notify me when USDC borrow rates dip 3%”).

Funds will directly accelerate:

Security: Cover audit costs for user trust.

Protocol specific incentives: We will be launching an incentives program with the funds targeting markets where users can save significantly.

For example Aave USDC.e -> Compound USDC.e Or Aave Arbitrum -> Venus Arbitrum.

With the idea being using the funds to partially repay debt of users who have migrated and held, selected randomly.

Multi-Chain Expansion: Deploy to Optimism and Base.

Call to Action Test the Alpha: Try Kapan on Arbitrum and share feedback.

Join Governance: Help prioritize future integrations (Euler, Morpho).

Spread the Word: Educate users trapped in suboptimal debt positions.

Demo: www.kapan.finance | Twitter: @KapanFinance

Why This Matters DeFi’s promise is diluted when users overpay for loyalty. Kapan Finance fixes this by making rate arbitrage simple, accessible, and fair — a true public good.