Yield Bearing kUSD
Purpose Yield share token that accrues systematic alpha yield through its exchange rate = NAV of the underlying deployed assets into delta-neutral strategies on perpetual DEXs.
Standards
SPL token issued as tokenized fund units.
Added liquidity for quick trading in/out of positions without requiring a 24h cooldown.
Pegged by market forces to the fair NAV of the fund.
Description
SOL Yield Engine for kUSD is a yield-bearing stablecoin that accrues Net Asset Value (NAV) from Drift Protocol's vaults on Solana, leveraging market-neutral strategies in Drift's perpetual DEX ecosystem.
Drift vaults (part of a Solana perp exchange) allow automated, delta-neutral positions (e.g., lending, spot margin, perp trading) to generate yields while maintaining low risk.
NAV is calculated on-chain based on vault assets priced via Pyth oracles.
As of Q4 2025, Drift's ecosystem has over $13.68 billion in open interest, enabling scalable alpha for kUSD.
Multi-chain design
Native on Solana via SPL tokens.
On EVM-compatible chains (Ethereum, BNB Chain) via ERC-4626 vaults.
Cross-chain interoperability uses bridges (e.g., Wormhole or CCIP) to sync NAV accrual from Solana-based Drift vaults to EVM, aiming to ensure consistent yields (target 10–20% APY from funding rates and fees) across chains.
Further multichain & multi-venue expansion
The design is composable to add additional systematic alpha engines across other perpetual protocols and chains (Base, Sui, BNB Chain, etc.), enabling diversified yield sources.
Pegging & mint/redemption mechanics
kUSD is minted 1:1 against USDC or equivalent stablecoins.
Over-collateralization (105%+) is maintained for peg stability.
Peg stability is enforced by arbitrage and oracles.
Users deposit stables to mint kUSD and can redeem permissionlessly.
Yields compound daily into share kUSD's NAV, drawn from systematic alpha strategies deployed on perpetual DEXs.
Related pages
Last updated 17 hours ago