KelpDAO

The GENIUS Act has transformed stablecoins from a regulatory gray area into a legally recognized payment infrastructure in the US. **Key developments:** - Stablecoin supply has surpassed $300B, with growing adoption beyond crypto trading - Dollar-backed tokens now have clear legal framework for payments and settlement - The shift marks stablecoins' transition from speculative assets to practical financial rails **What changed:** Two years ago, building payment systems on stablecoins faced regulatory uncertainty. The GENIUS Act, signed into law in July 2025, established the first US framework specifically for payment stablecoins. This legal clarity has enabled stablecoins to move into mainstream commerce and settlement use cases, connecting crypto infrastructure with traditional economic activity. The legislation represents a milestone in bridging digital assets with everyday financial transactions.

**The Problem:** - $300B+ in stablecoins sit on-chain seeking yield - $2.5 trillion trade finance gap exists off-chain (Asian Development Bank) - Traditional banks can't bridge these markets due to deal size, duration, and cross-border complexity **Current Friction:** - Suppliers wait 30-90 days for receivables to convert to cash - Payment service providers hold billions in idle liquidity - SMEs face rejection for working capital loans - Paper-heavy processes create weeks of settlement delays **The Solution:** Kelp's $KUSD aims to connect on-chain stablecoin liquidity with off-chain trade finance through programmable smart contracts, enabling: - Real-time settlement on blockchain rails - Transparent, verifiable cash flows - Scalable short-term credit for high-velocity trade The infrastructure targets existing payment flows rather than creating new markets, positioning itself as an "Internet of Credit" that transforms receivables into instant liquidity.

KelpDAO's agETH strategy delivered a **5.09% total reward rate on ETH** last week, with significant deployment across DeFi protocols. **Key Performance Metrics:** - Grow Compound generating **8% reward rate** - **73% of capital** deployed in leveraged restaking positions on Aave - Portfolio maintaining steady returns through diversified strategy The liquid restaking protocol continues to optimize yields through strategic allocation across multiple platforms, with the majority of assets concentrated in Aave's leveraged restaking opportunities.

**rsETH bridging ended June 15 across 20 networks** KelpDAO has discontinued rsETH bridging on multiple chains including Optimism, Blast, zkSync, Berachain, Avalanche, and 15 others. Users who missed the deadline can still recover their assets. **Recovery process:** - Burn rsETH on the source chain - Pay 100 USDC flat fee on Ethereum mainnet - Email both transaction details to claims@kelpdao.xyz - Quarterly settlement returns rsETH to Ethereum **Key details:** - Recovery window open until June 15, 2027 - Movement network users follow separate process - All user backing remains safe Full recovery guide: [blogs.kerneldao.com/blog/recovering-rseth-from-sunset-networks](https://blogs.kerneldao.com/blog/recovering-rseth-from-sunset-networks)

KelpDAO has completed the operational phase of its rsETH recovery plan by transferring the final tranche of 20,373.72 rsETH to the rsETH OFT adapter. **Key Details:** - The final transfer marks the conclusion of the recovery operation - Transaction confirmed on Ethereum mainnet: [View on Etherscan](https://etherscan.io/tx/0x3be61d4336ea40ca2fa3aed20dc4ef672d4dfd029697a8b599661a6aff4767cb) - This follows the initial tranche transfer on May 14, which reopened rsETH bridging between mainnet and Layer 2 networks The completion of this plan restores full functionality to the rsETH token infrastructure across supported networks.

**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)

**KUSD rewards are generated from actual payment and settlement activity**, marking a departure from typical crypto reward mechanisms that rely on token emissions or market speculation. **Key differentiator:** - Rewards stem from real-world transaction settlement - Activity continues regardless of market conditions - Payments process consistently in both bull and bear markets **Why this matters:** The reward structure demonstrates resilience across market cycles since payment settlement occurs daily, independent of crypto market volatility. This creates a more sustainable reward model tied to genuine economic activity rather than speculative trading. The approach suggests a shift toward utility-driven tokenomics in the liquid restaking space.

**wrsETH supply caps increased to 10k tokens** on Aave v3's Avalanche market after the initial 5k cap filled rapidly. The liquid restaking token launched on Avalanche just last week and quickly reached maximum capacity, prompting this expansion. - Previous cap: 5k wrsETH - **New cap: 10k wrsETH** - Available for deposit now This follows a pattern of high demand for liquid staking derivatives across DeFi protocols, with similar cap increases needed on other networks. [Deposit wrsETH on Aave Avalanche](https://app.aave.com/reserve-overview/?underlyingAsset=0x7bfd4ca2a6cf3a3fddd645d10b323031afe47ff0&marketName=proto_avalanche_v3)

**Equilibria's weekly voting market is now active** with 9,372 $KERNEL tokens available as rewards. Users can vote for three specific pools to earn their share: - rsETH pool - agETH pool - hgETH pool This represents an **increase from previous weeks** - up from 8,460 tokens last week and 8,220 tokens in mid-November. [Vote now on Equilibria](https://equilibria.fi/vote) to participate in the reward distribution.

**Stable Gain enhances rewards for sbUSD holders** KelpDAO's Stable Gain vault now offers additional incentives: - **10 Kernel Points daily** per 1,000 sbUSD held - Points **backfilled** for historical balances - **Automatic stacking** with no extra steps required - Updated totals visible on dashboard sbUSD continues providing risk-managed stablecoin yields while now earning bonus points. [Deposit in Stable Gain](https://kerneldao.com/kelp/gain/stable-vault/?utm_source=social)