kUSDT shares of USDT


As the counterparty on the platform, the treasury, in the event of a one-sided market movement, may incur losses. Please be aware of the risk.

The vault serves as the counterparty to all trades made on the platform:

  • When traders win (positive PnL), their winnings will be received from the vault.

  • When traders lose (negative PnL), their losses will be sent to the vault.

In exchange, the vault receives a portion of the trading fees, all the borrow fees, and the funding fee rate for the long and short spread portion. These fees are proportionally split among kUSDT shares, incentivizing stakers to stay in the vault.

Collateralization of the vault depends on traders' PnL. As long as the fees earned are greater than PnL payouts, stakers earn a positive return. This has proven to be the case for over two+ years and the protocol has various risk management measures in place to ensure it continues.

In order to enable users to independently control their own risks, we have listed all the Exposure of the current vault in detail on the "Earn" page. Users can decide whether to hedge the exposure according to their own risk preferences. The vault's biggest challenge is to stay competitive in bull market. As the counterparty of the trading users, vault will hold a large number of positions in the opposite direction. We will provide hedging tools for users in the future.


kUSDT Vault is a USDT vault following ERC-4626, a standard API for tokenized yield-bearing vaults that represent shares of a single underlying ERC-20 asset. For this vault, kUSDT shares represent the underlying USDT asset.


We use 30Day Real APY to represent the APY.

The 30Day Real APY, computed by applying XIRR on the past 30 days'earnings from Vault, include commission, funding fee, borrowing fee, and realized profit and loss encountered by traders.

This can be understood as the annualized return on staking in the vault for 30 days.

Example 1

DateUser's vault actionVault balance


user stake 1000 USDT into vault





user redeem 11000 USDT from vault

The 30day Real APY is (11000-10000)/10000/30*365=121.66%

Example 2

DateUser's vault actionVault balance


user1 stake 10000 USDT to vault



user2 stake 10000 USDT to vault




The 30day Real APY is XIRR([-10000,-10000,21000], [2023-1-1, 2023-1-20, 2023-1-30]) = 148%

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