wrsETH Supply Cap Doubles on Aave Avalanche Market

KelpDAO is currently experiencing technical difficulties with its rewards system and fashion features. The team has acknowledged these issues and is working on fixes. Meanwhile, the protocol is preparing to launch **KUSD**, a new stablecoin product. No specific timeline has been provided for either the bug fixes or the KUSD release. Users should expect temporary disruptions to rewards distribution and fashion-related features until the issues are resolved.

**Trade finance**, a **$10 trillion market** that predates cryptocurrency, has proven resilient through recent economic crises. **KUSD** now provides direct access to this established sector. **Key Points:** - Trade finance operates independently of crypto market volatility - The market has maintained stability during turbulent periods - KUSD serves as an entry point for participants seeking exposure to traditional trade finance This development bridges traditional commerce infrastructure with digital assets, offering access to a market that processes real-world transactions rather than speculative trading.

**Regulatory pressure intensified in 2026** as global institutions moved to control stablecoins: - World Economic Forum classified stablecoins as a geopolitical concern - EU proposed kill switch mechanisms for stablecoin operations - US enacted the GENIUS Act establishing formal oversight **The common thread**: regulators want full transparency into stablecoin reserves and operations. This shift follows a turbulent year where geopolitical events—shipping disruptions, bond crashes, and regional crypto bans—exposed vulnerabilities in existing stablecoin models. KUSD positions itself as aligned with this regulatory direction, building compliance into its core design. The message is clear: the era of opaque stablecoin operations is ending.

**rsETH looping rewards increased on Aave V3** Kelp has launched a boosted rewards campaign for rsETH on Aave V3's Core market, offering up to **9% rewards** through rsETH <> ETH loops using E-Mode. **Key details:** - Campaign runs from April 3 to May 1 - Only new supply after April 3 qualifies for boosted rewards - E-Mode enables more capital-efficient looping strategies - Previous campaigns on Mantle offered up to 7% rewards **How it works:** Users supply rsETH as collateral, borrow ETH, and loop the position to amplify restaking exposure while earning the enhanced reward rate. [Start looping on Aave](https://app.aave.com/reserve-overview/?underlyingAsset=0xa1290d69c65a6fe4df752f95823fae25cb99e5a7&marketName=proto_mainnet_v3)

**Kelp and Mantle are hosting a Twitter Space on March 5 at 1 PM UTC** to discuss the recent growth in Mantle's DeFi ecosystem. The conversation will cover: - Factors driving DeFi expansion on Mantle - Kelp's rsETH integration and its role in the ecosystem - Future developments and plans This follows a previous AMA in September 2024 where Mantle discussed its Layer 2 positioning. [Join the Space](https://x.com/i/spaces/1MJgNgbZQNkGL?s=20)