KERNE_LITEPAPER_V1.0

Institutional-Grade Delta-Neutral Synthetic Assets

01_THE_STRATEGY

Kerne utilizes a Delta-Neutral Shorting strategy to generate sustainable, high-yield returns on Ethereum collateral. By combining Liquid Staking Tokens (LSTs) with 1x Short Perpetual positions on Tier-1 Centralized Exchanges, the protocol eliminates price exposure while capturing two distinct yield streams.

Staking Yield: Native rewards from wstETH/cbETH.
Funding Arbitrage: Payments from long traders to short holders during bullish/neutral markets.

02_RISK_VECTORS

Transparency is our core principle. Investors must understand the following risks:

Counterparty_Risk

Collateral is held on Tier-1 exchanges (Binance/Bybit). Exchange insolvency or API failure could impact withdrawals.

Smart_Contract_Risk

While audited, all on-chain protocols carry inherent risks of bugs or exploits in the vault logic.

03_FEE_STRUCTURE

PERFORMANCE_FEE20%

Fees are automatically deducted from generated yield. No entry or exit fees.