DeFi protocol Kannagi Finance launched only a month ago, promising high yields for stablecoin deposits and lending. As such, the project gained a lot of hype in the zkSync community for bringing popular decentralized finance (DeFi) features to the Ethereum Layer 2 network scaling solution. 

Before its launch, Kannagi Finance claimed to be different from other yield farming protocols and promised users the best yield and trading fee rewards with its KANA tokens. However, recent developments from Kannagi Finance point to what many might call a rug pull. 

The Aftermath: Investor Losses Total $2 Million

The DeFi space moves fast, and Kannagi Finance was no exception. This zkSync-based revenue aggregator launched this year promising high yields with maximum returns with low …