OKX Ventures Invests in Type 2.5 zkEVM Project Kakarot to Advance Ethereum Scalability

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The future of Ethereum scalability is gaining momentum with innovative solutions emerging from the Web3 ecosystem. One such breakthrough is Kakarot, a Type 2.5 Zero-Knowledge Ethereum Virtual Machine (zkEVM) built using Cairo, a Turing-complete language designed for provable programs on blockchain based on STARK (Scalable Transparent Argument of Knowledge) cryptography. In a strategic move to support next-generation blockchain infrastructure, OKX Ventures, the investment arm of leading Web3 technology platform OKX, has announced its participation in Kakarot’s seed funding round.

This investment underscores a growing confidence in zero-knowledge proof-based scaling solutions and highlights the importance of EVM compatibility within high-performance Layer-2 and Layer-3 architectures.

What Is Kakarot?

Kakarot began as a grassroots community project during a Starknet Hacker House in October 2022. What started as an experimental initiative quickly evolved into a fully-fledged company driven by a clear mission: to bring Ethereum Virtual Machine (EVM) compatibility to Starknet through a zkEVM built natively in Cairo.

Unlike traditional zkEVM implementations that often rely on Solidity or other EVM-centric tools, Kakarot is written entirely in Cairo, leveraging Starkware’s powerful proving system. This allows developers to run EVM-equivalent smart contracts while benefiting from Starknet’s scalable, secure, and decentralized infrastructure.

Within just two and a half months, the team achieved full opcode equivalence—meaning every operation code used in Ethereum’s execution environment can be replicated within Kakarot. This technical milestone marks a significant leap toward seamless interoperability between Ethereum and Starknet.

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Bridging Ethereum and Starknet with Type 2.5 zkEVM

Kakarot is classified as a Type 2.5 zkEVM, which means it closely mimics Ethereum’s behavior but introduces slight modifications for improved performance on STARK-based systems. While not fully equivalent to Ethereum’s execution layer (which would be Type 1), Type 2.5 strikes an optimal balance between compatibility and efficiency.

By operating as both a Layer-2 on Ethereum and a Layer-3 on Starknet, Kakarot enables developers to deploy existing Ethereum dApps with minimal changes while taking advantage of near-infinite scalability and reduced transaction costs.

This dual-layer functionality opens new possibilities for decentralized finance (DeFi), gaming, and NFT platforms seeking high throughput without sacrificing security or developer familiarity.

The Vision: From Type 2.5 to Type 1 zkEVM

Kakarot’s long-term goal extends beyond current capabilities. The team aims to evolve into a Type 1 zkEVM, where any Ethereum Layer-1 node could theoretically generate STARK proofs. Achieving this would represent a major milestone in blockchain convergence—allowing Ethereum itself to verify computations off-chain with cryptographic certainty.

In parallel, Kakarot is exploring additional innovations, including:

These efforts are designed to lower barriers for Ethereum developers transitioning to zk-rollup ecosystems while maintaining composability and trustlessness.

Why OKX Ventures Backed Kakarot

Dora Yue, Founder of OKX Ventures, emphasized the strategic significance of the investment:

"We are honored to participate in the seed round of investment in Kakarot, a Cairo language-based zkEVM. Kakarot is built on Starknet, utilizing an innovative coding language that resolves the issue of Starknet's incompatibility with EVMs. This advancement enables the Ethereum ecosystem to flourish on Starknet."

OKX Ventures focuses on early-stage projects that push the boundaries of blockchain technology, particularly those advancing scalability, interoperability, and user adoption. Kakarot aligns perfectly with this vision by addressing one of the most pressing challenges in the Ethereum ecosystem: how to scale without compromising compatibility.

With strong community engagement and rapid technical progress, Kakarot represents a promising step toward mass adoption of zero-knowledge technologies.

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Upcoming Milestone: First Testnet Launch

Kakarot is preparing to launch its inaugural testnet, marking a critical phase in its development roadmap. This testnet will serve as a live environment for developers to experiment with deploying Ethereum dApps on a Cairo-powered zkEVM.

Key features of the upcoming testnet include:

Developers will be able to interact with Kakarot using familiar workflows while benefiting from Starknet’s underlying scalability engine.

FAQ: Understanding Kakarot and Its Role in Web3

Q: What makes Kakarot different from other zkEVMs?
A: Unlike most zkEVMs built using Solidity or custom compilers, Kakarot is written entirely in Cairo—the native language of Starknet. This allows deeper integration with STARK proofs and more efficient verification processes while maintaining EVM equivalence.

Q: What does “Type 2.5 zkEVM” mean?
A: A Type 2.5 zkEVM preserves most of Ethereum’s execution logic but modifies the state root handling for better performance on zk-rollups. It offers near-perfect compatibility with Ethereum while optimizing for scalability.

Q: Can I deploy my existing Solidity smart contracts on Kakarot?
A: Yes—Kakarot supports EVM opcodes, allowing most Solidity-based contracts to be deployed with little or no modification. Developer tools like Hardhat and Truffle are also supported.

Q: How does Kakarot contribute to Ethereum scalability?
A: By acting as a Layer-2 on Ethereum and Layer-3 on Starknet, Kakarot enables high-throughput processing of transactions and smart contract executions, reducing congestion and fees on the main Ethereum chain.

Q: Is Kakarot decentralized?
A: While currently in development, Kakarot is designed to align with decentralization principles over time, leveraging Starknet’s permissionless and trustless architecture.

Q: What is the role of zero-knowledge proofs in Kakarot?
A: Zero-knowledge proofs (specifically STARKs) allow Kakarot to batch and verify large numbers of transactions off-chain, submitting only concise cryptographic proofs to Ethereum—ensuring security, privacy, and scalability.

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Final Thoughts

As Ethereum continues to grow, so does the demand for scalable, secure, and developer-friendly solutions. Kakarot stands at the intersection of innovation and practicality—bridging two powerful ecosystems through a Cairo-native zkEVM.

With backing from OKX Ventures and strong momentum within the Starknet community, Kakarot is well-positioned to become a key player in the next evolution of decentralized computing.

For developers, investors, and enthusiasts alike, the journey toward scalable, composable, and interoperable blockchains is accelerating—and projects like Kakarot are leading the charge.