KernelDAO

Q1 2026 was Kelp's strongest quarter since launch. Total TVL reached $1.33B, rsETH supply across Aave grew to $1.2B, Gain vaults crossed $100M in combined TVL with the #1 ETH vault ranking on vaults.fyi, and KUSD moved from framework to live execution with hundreds of millions in LP commitments secured.
This report covers every vertical: what happened, what the numbers say, and what comes next.
<img src="https://framerusercontent.com/images/SdwjCx8cjcIHW6c4okAGj6ISNI.png">
<h2 id="strong-rseth-strong">rsETH</h2>
rsETH had its most significant quarter since launch, with multiple catalysts compounding across the quarter.
In January, rsETH E-Mode went live on Aave V3 Core Market, unlocking up to 93% LTV and ~14x leverage on rsETH &lt;&gt; ETH loops. The effect was immediate: rsETH collateral on the Core Market tripled to $900M+, with supply caps approaching max utilization. Cian, Contango &amp; DeFi Saver launched one-click E-Mode looping, removing friction from the leverage flow entirely.
Multi-chain momentum continued throughout the quarter. rsETH supply on both Aave V3 Avalanche and Base markets crossed $65M. On the Mantle market, wrsETH supply crossed $110M, making it the fastest-growing asset in that market.
Across all Aave deployments, rsETH supply now sits at ~$1.2B. Total ETH restaked crossed 680,000+. Kelp's total TVL, including Gain vaults, reached $1.33B.
Then on the final day of the quarter, Aave launched a dedicated Spoke on the Aave V4 Core Hub from day one, with E-Mode parameters purpose-built for rsETH. Kelp is one of the first protocols to have a native presence on V4's new unified liquidity architecture, with rsETH as collateral and WETH as the borrowable asset. This positions rsETH at the center of Aave's next-generation lending infrastructure.
rsETH is the prime blue-chip collateral asset for DeFi lending.
<img src="https://framerusercontent.com/images/PbH1PEufU78ii4fZgLYWs54RDQ.png">
<h2 id="strong-gain-vaults-strong">Gain Vaults</h2>
The Gain suite had its strongest performing quarter.
High Gain (hgETH) earned the #1 ETH vault ranking on vaults.fyi, sustaining 9-13% rewards with $50M+ TVL. Powered by UltraYield and Upshift.
Stable Gain (sbUSD) delivered up to ~10% rewards on USDT/USDC with no lockups, powered by risk-adjusted strategies via UltraYield.
Always Gain (agETH) ranked as the top-performing ETH vault in January, delivering up to ~12% rewards with $45M+ TVL, driven by institutional strategies from K3 Capital and August Digital.
Combined TVL across the suite: $100M+. New integrations to be announced soon.
<img src="https://framerusercontent.com/images/bq6Zy7q5oqBLF9m12BRHn7oAQXA.png">
<h2 id="strong-kusd-strong">KUSD</h2>
Q1 moved KUSD from positioning to execution on multiple fronts.
Private pilots are now underway with institutional partners. Hundreds of millions in LP commitments have been secured. The full safety infrastructure is being built including KYB-verified counterparties, real-time LTV monitoring, automated liquidations, and insurance-backed vault structures.
KUSD generates rewards through secure, short-tenor receivables financing across trade finance and payment finance. These flows continue regardless of crypto market conditions. sKUSD is designed to target a 9% base reward rate, scaling up to ~25% with DeFi LP and looping strategies layered on top. Unlike typical on-chain stablecoin rewards that compress to 2-3% in bear markets, KUSD is built to remain resilient across cycles.
Mainnet launch is planned for late Q2.
<img src="https://framerusercontent.com/images/ki978uUcs07e9rTJG7pw4mqUe4.png">
<h2 id="strong-revenue-strong">Revenue</h2>
Kelp generated ~$1M in protocol revenue in Q1 2026.
As KUSD enters mainnet and Gain TVL continues scaling, the revenue mix is expected to diversify further, with KUSD introducing real dollar-denominated revenue from institutional payment settlements for the first time.
<img src="https://academy-public.coinmarketcap.com/optimized-uploads/8e2f7f23ef3d473e8d79cce90b281fa2.png">
<h2 id="strong-what-s-ahead-strong">What's Ahead</h2>
Late Q2: KUSD mainnet launch. New Gain vault integrations. Continued rsETH expansion across newer L2s and lending markets.
Q1 built the engine across every vertical. The rest of the year is about turning it on.
<img src="https://framerusercontent.com/images/KujGc0N00g7jwRB1QNsJBI0IdM.png">

Kelp Q1 2026 Report

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