{"expectedAPY":0.0295,"expectedAPYPct":"2.95%","stakingYield":0.0219,"stakingYieldPct":"2.19%","avgAnnualFunding":0.0422,"hedgeVenue":"hyperliquid","bestFundingVenue":"hyperliquid","fundingRates":{"hyperliquid":{"venue":"hyperliquid","rate":0.0000125,"annual":0.1095,"interval":"1h"},"okx":{"venue":"okx","rate":0.00004789,"annual":0.052441,"interval":"8h"}},"lstYields":{"wstETH":0.0219},"timestamp":1785127564117,"timestampUTC":"2026-07-27T04:42:47.236Z","isLive":true,"methodology":"L/(L+1) at L=1.92 = 0.6578 × (Lido 7d SMA 2.19% + HL 180d funding 4.22%) × (1 − 22.32% strategy costs) × (1 − 10% insurance) × (1 − 0% Genesis fee). L is the venue leverage the engine targets at this funding rate, min(12, 1.5 + funding × 10); the multiplier is L/(L+1) because the short is sized one for one against spot and the margin earns nothing.","sources":{"stakingYield":0.0219,"fundingRate":0.0422,"stakingSource":"lido-sma-7d","fundingSource":"hyperliquid-180d-trailing","fundingWindowDays":180,"fundingEntries":4320,"leverage":1.9223,"carryMultiplier":0.6578,"modeledLeverage":3,"grossAPY":0.0422,"strategyCostFraction":0.2232,"strategyNetAPY":0.0327,"insuranceAllocation":0.1,"protocolFee":0,"feePhase":"genesis"},"protocolFee":0,"feePhase":"genesis","framing":{"kind":"modeled-deployed-basis","headline":"The published APY is a live model of the DEPLOYED book: the engine sizes its short one for one against on-chain spot, so the carry is multiplied by L/(L+1), which is below one, never by L. It is a forward model, not a record of realized distributions. Realized yield is published separately in the realized block.","deployedBasis":"The deployed engine runs an unlevered hedge, sized one for one against the vault's exposed assets. Venue leverage reduces posted margin; it does not multiply the carry earned on the underlying. For capital C at venue leverage L the spot leg is C times L/(L+1) and the rest is margin earning nothing, so that ratio, not L, is what multiplies the carry. This endpoint publishes that number as the headline.","modeledBasis":"The modeled block carries the 3.0x design target at scale. It is reachable only if the spot leg is itself levered to three times notional through a borrowing facility Kerne does not operate today, and the model charges no borrow cost against it. Published as a labelled target, never as a live or realized rate. Until 2026-07-24 this figure was the headline; it no longer is.","throughCycleBandPct":[8,9.4],"throughCycleBasis":"Kerne's published feasibility analysis puts the sustainable through-cycle rate for this design near 8 to 9.4 percent at current market funding. Read the basis before comparing anything to it: that band is computed on a LEVERED design basis, with the 9.4 end being this same formula evaluated at 2.0x. It is therefore not an arithmetic ceiling on either figure published here. The deployed headline sits under it by construction, because its multiplier is below one rather than above, so the distance is a different measurement and not an unmet target. The 3.0x modeled target sits ABOVE it, which is precisely the finding the feasibility review makes. The analysis, including the derivation of both bounds and a dated addendum on the deployed engine's unlevered basis, is published in full at https://kerne.fi/insights/through-cycle-yield-feasibility-band-8-to-9-4-percent.","measuredVenueBasis":"The headline derives its leverage from the engine's own funding rule, which is reproducible from public inputs. The ratio the hedge account is actually carrying is measured separately, from the signed hourly attestation, and published in the measuredVenue block. It is not the headline because at current book size it swings on rounding and over-margining rather than on the market, but it is published because it can read below the rule-based figure and we would rather state that than have it found.","realizedToDate":"First on-chain skUSD yield distribution occurred 2026-07-08. Realized distributions to date are small relative to both the deployed model and the target: the live figure is carried in the realized block below and on kerne.fi/honesty-index."},"marketContext":{"available":true,"susde":{"stakingYieldPct":null,"protocolYieldPct":null,"defillamaApyPct":4.15,"stakedUsd":1531378277},"headline":{"pct":4.15,"source":"defillama","sourceNote":"per DefiLlama's published data"},"sources":{"ethena":"https://app.ethena.fi/api/yields/protocol-and-staking-yield","defillamaChart":"https://yields.llama.fi/chart/66985a81-9c51-46ca-9977-42b4fe7bc6df"},"asOf":"2026-07-27T04:42:47.240Z","note":"sUSDe is the largest delta-neutral synthetic dollar; its realized rate is published by Ethena and tracked independently by DefiLlama. The Kerne number above is a forward model of the deployed book, not a realized distribution: the hedge is sized one for one against on-chain spot, so venue leverage reduces the margin that has to be posted rather than multiplying the carry earned. The separate 3x design target at scale is published under its own label. Both figures move; verify them at the source URLs."},"basis":"deployed","modeled":true,"modeledTarget":{"basis":"modeled-target-at-scale","label":"Modeled target at scale","leverage":3,"apy":13.44,"expectedAPY":0.1344,"expectedAPYPct":"13.44%","grossAPY":0.1922,"timesDeployed":4.56,"note":"The modeled block carries the 3.0x design target at scale. It is reachable only if the spot leg is itself levered to three times notional through a borrowing facility Kerne does not operate today, and the model charges no borrow cost against it. Published as a labelled target, never as a live or realized rate. Until 2026-07-24 this figure was the headline; it no longer is."},"realized":{"available":true,"annualizedPct":0.157,"windowDays":23,"asOf":"2026-07-27T03:37:40.575Z","source":"https://kerne.fi/api/honesty-index","note":"Annualized growth of the on-chain skUSD share price over the window. This is what has actually been paid; the figures above are forward models."}}