KelpDAO

The rsETH supply cap on Aave V4 has been increased, opening up new deposit opportunities. **Key Details:** - Supply caps are filling quickly after the increase - Users who were waiting for capacity can now deposit - Access the market at [Aave Pro](https://pro.aave.com/explore/asset/1/0xA1290d69c65A6Fe4DF752f95823fae25cB99e5A7) This follows a similar pattern from December 2025, when wrsETH supply caps on Aave V3's Avalanche market increased to 10k wrsETH and filled rapidly.

**Fast Swaps Early Access Now Live** KelpDAO has launched early access to Fast Swaps, allowing users to bypass withdrawal queues and instantly unstake rsETH into multiple assets including ETH, WETH, USDC, and WBTC. **Key Features:** - Instant liquidity without waiting periods - Multi-asset swap support - Native integration with seamless user experience **Rewards Program:** Every swap earns users Miles from Fast Protocol, adding an incentive layer to the instant unstaking functionality. The feature aims to improve liquidity options for liquid restaking participants by eliminating traditional withdrawal delays.

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 trillions in global trade annually.

**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 **Common thread**: All regulators demand full transparency into stablecoin backing and operations. This follows a turbulent year where geopolitical events exposed vulnerabilities in existing stablecoin models - from shipping disruptions to bond market crashes and sudden trading freezes in countries like Iran. KUSD positions itself as aligned with this regulatory direction, building compliance and transparency into its core design. The shift marks a transition from experimental crypto assets to regulated financial infrastructure, with frameworks like the GENIUS Act bringing stablecoins inside traditional financial systems under clear rules.

**Boosted rewards campaign for rsETH looping on Aave V3** Kelp's rsETH can now earn up to **9% rewards** when looped with ETH on Aave V3's Core market using E-Mode. The campaign runs from April 3 through May 1. **Key details:** - E-Mode enables more capital-efficient rsETH <> ETH loops - Only supplies made after April 3 qualify for boosted rewards - Previous supplies before this date are not eligible This follows similar reward campaigns on other networks, including a 7% wrsETH looping opportunity on Aave V3's Mantle market that recently concluded. [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)

**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.