Introducing kvantsUSD (kUSD)

(Direct link: https://kvants.gitbook.io/kvants-kusd/#the-first-stablecoin-backed-by-dollar-neutral-quantitative-trading-portfolios-on-top-of-decentralise)

Abstract

(Direct link: https://kvants.gitbook.io/kvants-kusd/#abstract)

With the increasing open interest and volume on decentralized perpetual exchanges, there is a blue ocean that spawns for the introduction of the first stablecoin fully backed by quantitative dollar-neutral yield that harnesses alpha from trading activity on top of perpetual DEXs, and delivers a high Sharpe, minimal drawdown yield to its holders via systematic alpha.

kUSD is a USD‑pegged stablecoin whose yield is derived from fully on‑chain, market‑neutral strategies executed on perpetual decentralized exchanges (perp DEXs). Users deposit USDC and mint kUSD 1:1; minting can then be “locked” into ekUSD share tokens to accrue strategy yield that compounds into the ekUSD Net Asset Value (NAV). Collateral is deployed through the Kvants Vaults suite into (1) delta‑neutral JLP hedging and (2) funding‑rate arbitrage across Solana perp venues. (Later to be expanded across numerous other chains and venues, such as Aster, Hyperliquid, ApeX and others). All with on‑chain transparency via Pyth price feeds and Chainlink's PoR, production‑hardened vault infrastructure primitives.

At the system level, kUSD targets ≥105% aggregate collateralization through a dedicated Safety Buffer that absorbs strategy drawdowns and ensures immediate redemptions at $1. ekUSD holders, not kUSD holders, bear strategy P&L (positive or negative), cleanly separating stability from yield.

The design of kUSD is motivated by:

  • the 2025 explosion in derivatives trading activity and open interest (record highs above ~$13–14.5B OI reported in September 2025 on Solana), which expands neutral carry opportunities, and

  • the maturation of perp DEX liquidity products like JLP where fee‑sharing mechanics are programmatically transparent, creating new alpha capture opportunities for systematic strategies.

Related: Systematic Alpha Capture

Last updated 23 minutes ago

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