TDLR
How to get something similar to the iTerm "dropdown hotkey/overlay" functionality to work with Kitty Terminal (on a Mac)?
I work on a Mac and used iTerm2 for a long time and integrated the "hotkey window" into my workflow. Since I've made the switch to Kitty I have been trying to get the same functionality but couldn't find something that suits my needs.
Caveat/Problems
The one app that has this built-in, that I know of, is also iTerm. There's one big difference with this implementation and the native iTerm implementation.
iTerm is more of a "drop-down", in that it functions as an overlay. The BTT implementation will literally show and hide the application. This means that whenever you are working with multiple desktops, and you trigger this shortcut, BTT will move you to the desktop where the application is.
A similar solution for Lunix is using tdrop. As far as I know there's no equivalent tool for MacOS
I find this quite annoying TBH and would love to know if anyone knows how to do the same thing, but in a "drop-down" or "overlay" fashion
What I've tried
BetterTouchTool (BTT)
This is the way I've set it up using BTT.

AppleScript
This does sort of the same thing, but without the use of BTT.
set appName to "kitty"
tell application "System Events"
if visible of application process appName is true then
set visible of application process appName to false
else
set visible of application process appName to true
end if
end tell
I just got the same concern and implemented with the help of Hammerspoon app.
~/.config/kitty/kitty.conf:init.luato~/.hammerspoon:Reload config in Hammerspoon, now you could invoke/launch Kitty with hotkey
cmd+esc