Written by: Nicky, ForesightNews
On July 10, the official page of the Trump family crypto project World Liberty Financial (WLFI) indicated that the community vote on its token transfer proposal has entered the final stage — with a support rate of 99.93% and an opposition rate of only 0.07%. Voting will end on July 17. If the proposal passes, WLFI will officially launch 'transferability'.
On May 28 of this year, WLFI announced its integration of USD1 with Kernel DAO, making it a re-stakable asset. The core of this collaboration is to upgrade stablecoins from traditional 'static lending tools' to 'dynamic infrastructure supporters'. For WLFI, this means its stablecoin can provide economic security for third-party applications; for Kernel DAO, it represents a key 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 to $0.999 on June 22. As of the time of writing, KERNEL's price has pulled back to around $0.115 after rising to $0.146, highlighting the need for caution regarding investment risks.
WLFI×Kernel DAO: The 'third-party security empowerment' experiment for USD1
WLFI's USD1 stablecoin previously existed primarily as a circulating medium within its ecosystem. According to WLFI's official description, the integration with Kernel DAO allows users to stake USD1 in the Kernel network, making it a 're-stakable asset' — this portion of assets can not only provide economic security for applications in the Kernel ecosystem but also earn Kernel points as rewards simultaneously.
The essence of this mechanism is to transform stablecoins from 'idle assets in a capital pool' into 'energy units supporting decentralized infrastructure'. In traditional lending models, stablecoin yields mainly come from borrowing demand (annualized yield of about 2% - 4%), and funds are locked with a single purpose; through Kernel DAO, the yield of USD1 expands to support various types of infrastructure such as Rollup sequencers, decentralized oracles, and data availability networks. The operation of these infrastructures requires stable financial support, so users holding USD1 effectively become 'distributed security nodes', with yields dynamically adjusted according to demand growth.
For users, the attraction of re-staking lies in 'yield upgrade' and 'function expansion'. The re-staked USD1 maintains high liquidity: users can deposit it into stablecoin pools on platforms like Curve to earn additional returns or use it as collateral to participate in lending, structured products, and other strategies. This means that the 'working model' of USD1 has shifted from 'single power supply' to 'multi-line collaboration', supporting network operations while providing staking returns for users.
Kernel DAO: A cross-chain re-staking infrastructure service provider
To understand why WLFI chose to collaborate with Kernel DAO, it is necessary to clarify what Kernel DAO is.
Kernel DAO is a DeFi protocol focused on re-staking technology, with the core goal of activating the utility of existing assets through a 're-staking' model. 'Re-staking' refers to users depositing already staked assets (such as stablecoins) back into decentralized networks while supporting multiple protocols or infrastructures, thus breaking through the traditional staking limitations of 'asset locking, single income'.
Kernel DAO's business covers multiple public chains, with core products including:
Kernel: A cross-chain re-staking protocol running on BNB Chain that allows users to stake assets like BNB, BUSD, etc., and allocates them to different decentralized validator networks (DVNs) through algorithms, providing security for infrastructures such as Rollup sequencers, oracles, and data availability networks;
Kelp: A liquidity re-staking protocol on Ethereum that focuses on releasing the liquidity of staking assets in the Ethereum ecosystem, allowing users to earn additional yields through re-staking LP (liquidity pool) tokens;
Gain: A protocol for tokenizing RWA yield through compliant means to transform traditional financial assets such as real estate and corporate bonds into on-chain yields, promoting the connection between DeFi and the real economy.
These three products are 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 major 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 value (TVL) of Kernel DAO reached $1.47 billion, with Kernel's TVL approximately $132 million.
Status and Potential: The 'Early Stage' Characteristics Behind $6,370
Although the collaboration between WLFI and Kernel DAO is viewed as an experiment in 'stablecoin re-staking', the current data still appears immature. According to Kernel's official website, as of today, the total re-staked amount of USD1 in Kernel is only $6,370. This number is almost negligible compared to Kernel DAO's total locked value (TVL) of $1.47 billion and Kernel's TVL of $132 million.
However, the 'small base' also means growth potential. From the industry trend, the re-staking model of stablecoins is on the rise: the low yield of traditional lending (3% APY) contrasts sharply with the high yield of re-staking (approximately 5% APY, which can exceed 10% after combining liquidity strategies), leading more users to pay attention to the new paradigm of 'allowing stablecoins to participate 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
The collaboration between WLFI and Kernel DAO is not only a functional upgrade of a single stablecoin but also a re-empowerment of stablecoin value, redefining its value dimensions. Traditional stablecoins' value remains as a 'medium of exchange' or 'store of value', while the re-staking model allows them to become 'co-builders of infrastructure' — perhaps this is the 'second curve' of stablecoins.
For investors, the story of Kernel DAO is just beginning: the re-staked amount of $6,370 is the starting point, not the end, and with WLFI's promotion, its growth potential is worth watching. 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 yields or even the safety of principal.
