What is the Kerne Protocol

A Delta Neutral Engine

Kerne Protocol is a delta neutral yield engine built on Base. We combine two independent, real yield sources into a single position whose live modeled rate, on the deployed basis, is published at kerne.fi/api/apy (variable, computed live, and capable of turning negative when funding inverts), without exposing you to the price swings of ETH or any other volatile asset. The design earns carry whether ETH goes up, down, or sideways, and the rate turns negative when funding inverts.

The two internal yield sources are:

• Ethereum staking rewards from a liquid staking position in the vault design. The deployed vault takes WETH and is closed to deposits.
• Perpetual futures funding rates (earned by the protocol's hedging engine, which opens short positions to neutralize ETH price exposure)

Accessibility & kUSD

This is not a new concept in traditional finance. Quantitative hedge funds have run delta neutral strategies for years. What is new is making this strategy accessible to anyone with a wallet, on chain, non custodial, and composable with the rest of DeFi.

Mint kUSD from USDC through the PSM, one for one less the fee, then optionally stake it into skUSD. Yield reaches skUSD only when distributed. The separate KerneVault collateral route is closed to deposits.

The design aims to make delta neutral carry accessible on Base. Every comparison Kerne publishes is dated and sourced, with the modeled rate at kerne.fi/api/apy and the realized record on the honesty board.