According to community voting, the support rate for the WLFI tradable proposal exceeds 99.9%, while KERNEL's maximum increase is over 30%. What is the connection between the two projects?
Written by: Nicky, ForesightNews
On July 10, the official page of the Trump family's crypto project World Liberty Financial (WLFI) showed that its token transferability proposal has entered the final stage of community voting—support rate reached 99.93%, with only 0.07% opposed; voting will end on July 17. If the proposal passes, WLFI will officially launch 'transferability.'
On May 28 this year, WLFI announced its integration of USD1 with Kernel DAO, becoming a re-stakable asset. The core of this cooperation is to upgrade stablecoins from traditional 'static lending tools' to 'dynamic infrastructure supporters.' For WLFI, it allows its stablecoin to provide economic security for third-party applications; for Kernel DAO, it represents a critical opportunity to validate the feasibility of its re-staking model.
As a result of this news, KERNEL saw a maximum increase of over 23% on the same day, followed by a drop from $0.206 down to $0.999 on June 22. As of the time of writing, KERNEL's price has retreated to around $0.115 after the rise to $0.146, and investors should be aware of the risks involved.
WLFI×Kernel DAO: The 'third-party security empowerment' experiment of USD1
WLFI's USD1 stablecoin previously existed mainly as a circulating medium within its ecosystem. According to WLFI's official description, this integration with Kernel DAO allows users to stake USD1 on the Kernel network, making it a 're-stakable asset'—this portion of the asset not only provides economic security for applications within the Kernel ecosystem but also earns Kernel points as rewards.
The essence of this mechanism is to transform stablecoins from 'idle assets in the fund pool' into 'energy units that support decentralized infrastructure.' In traditional lending models, the returns on stablecoins mainly come from borrowing demand (annualized returns of about 2% - 4%), and funds are locked up with a single purpose; through Kernel DAO, the sources of returns for USD1 expand to support various infrastructures like Rollup sequencers, decentralized oracles, and data availability networks. The operation of these infrastructures requires stable funding support, so users holding USD1 effectively become 'distributed security nodes,' with returns dynamically adjusted as demand grows.
For users, the appeal of re-staking lies in 'yield upgrade' and 'function expansion.' The re-staked USD1 retains high liquidity: users can deposit it into stablecoin pools on platforms like Curve to earn additional returns or use it as collateral for lending, structured products, and other strategies. This means that the 'working mode' of USD1 has upgraded from 'single power supply' to 'multi-line collaboration,' supporting network operations while providing staking returns for users.
Kernel DAO: Infrastructure service provider for cross-chain re-staking
To understand why WLFI chose to collaborate with Kernel DAO, one must first clarify what Kernel DAO is.
Kernel DAO is a DeFi protocol focused on re-staking technology, aiming to activate the utility of existing assets through the 're-staking' model. 'Re-staking' refers to users reinvesting already staked assets (like stablecoins) into decentralized networks while supporting multiple protocols or infrastructures, thus breaking through the limitations of traditional staking—'asset locking and single returns.'
The business of Kernel DAO covers multiple public chains, with core products including:
Kernel: A cross-chain re-staking protocol running on BNB Chain, allowing users to stake assets like BNB and BUSD, which are then algorithmically distributed to different decentralized validator networks (DVNs) to provide security for infrastructures such as Rollup sequencers, oracles, and data availability networks;
Kelp: A liquidity re-staking protocol on Ethereum, focusing on releasing the liquidity of staked assets in the Ethereum ecosystem, allowing users to earn additional returns through re-staking LP (liquidity pool) tokens;
Gain: A RWA tokenization yield protocol that transforms traditional financial assets like real estate and corporate bonds into on-chain returns through compliance measures, promoting the connection between DeFi and the real economy.
These three products are uniformly governed by the KERNEL token, and early supporters and ecosystem participants can earn incentives through staking or contributions. Currently, the KERNEL token has been listed on mainstream exchanges such as Binance, Coinbase, Upbit (BTC/USDT trading pair), and Bithumb (KRW trading pair).
According to DefiLlama data, as of July 10, 2025, the total locked amount (TVL) of Kernel DAO reached $1.47 billion, of which Kernel's TVL is approximately $132 million.
Current status and potential: The 'early stage' characteristics behind $6,370
Although the collaboration between WLFI and Kernel DAO is seen as an experiment in 'stablecoin re-staking,' the current data still appears immature. As of today, the total re-staked amount of USD1 on Kernel is only $6,370. This figure is almost negligible compared to the total locked amount in Kernel DAO (TVL) of $1.47 billion and Kernel's TVL of $132 million.
However, the 'small base' also signifies growth potential. From industry trends, the re-staking model for stablecoins is on the rise: the low returns of traditional lending (3% APY) stand in stark contrast to the high returns of re-staking (approximately 5% APY, which can exceed 10% with added liquidity strategies), and more users are starting to focus on the new paradigm of 'involving stablecoins in infrastructure support.'
If WLFI's community vote passes smoothly, the 're-staking entry' for USD1 will be further opened, encouraging more users to shift from 'holding' to 'participating.' Perhaps in the future, WLFI will also join the ranks of re-staking, injecting incremental funds into Kernel DAO.
Conclusion: The 'second curve' experiment of stablecoins
In the collaboration between WLFI and Kernel DAO, it is not only an upgrade of the function of a single stablecoin but also a re-empowerment of the value of stablecoins, which will redefine its value dimension. The value of traditional stablecoins remains in 'transaction medium' or 'value storage,' while the re-staking model allows them to become 'co-builders of infrastructure'—this may be the 'second curve' of stablecoins.
For investors, the story of Kernel DAO is just beginning: the $6,370 re-staking amount is a starting point, not an endpoint. With the push from WLFI, its growth potential is worth noting. Of course, risks also exist—re-staking relies on the stability of the infrastructure; if validation nodes fail or smart contracts have vulnerabilities, it may affect returns or even the safety of the principal.
