KUSD Rewards Explained: Real Payment Flows, Not Promises
KUSD Rewards Explained: Real Payment Flows, Not Promises
💰 Where KUSD Rewards Actually Come From
KUSD has clarified how its reward system operates, distinguishing itself from typical crypto yield mechanisms.
How KUSD Generates Rewards:
- Rewards come from actual payment settlement flows, not speculation or token emissions
- Capital backing KUSD is deployed as short-term credit to verified institutions
- Credit is used to settle real transactions, then repaid as cash flows clear and recycled
Key Design Principles:
- Built for resilience across different market cycles
- Backed by verification, rules, and automated defenses rather than speculative promises
- Self-liquidating credit model ensures capital efficiency
The approach represents a shift toward utility-driven stablecoin mechanics grounded in traditional finance settlement processes.
3/ Capital backing KUSD is deployed as short-term, self-liquidating credit to verified institutions. Used to settle transactions → repaid as cash flows clear → recycled again.
How KUSD manages risk: Designed for real-world credit KUSD isn't backed by promises or hope; verification, rules, and automated defenses secure it. Here's how: 🧵
✧ KUSD developments ⍛ KUSD rewards were detailed as being generated from real payment settlement flows, using short-term credit extended to verified institutions - designed to remain resilient across market cycles.
How KUSD generates rewards. Most on-chain rewards depend on markets or incentives. KUSD is different. Rewards are generated when payments settle, not when prices move. Full breakdown in the blog ↓ blogs.kerneldao.com/blog/how-kusd-…
2/ KUSD rewards come from somewhere else entirely: real payment and settlement activity.
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