World Liberty Financial (WLFI) has integrated its USD1 stablecoin with Kernel DAO, introducing a novel use case that allows USD1 holders to restake their stablecoins within the Kernel decentralized autonomous organization. This integration marks the first time USD1 can be used to provide application-level security, offering users the ability to earn Kernel points as rewards alongside maintaining the stablecoin's value.
Kernel DAO focuses on modular blockchain security by using restaked assets to validate third-party protocols across various networks. Previously reliant on ETH and similar cryptocurrencies, Kernel DAO now incorporates USD1, bringing stablecoin liquidity into its security framework. This increases the DAO’s capacity to secure decentralized applications and broadens its asset base.
Backed by U.S. Treasuries, USD1 stands out by combining the stability of a fiat-backed asset with the new functionality of contributing to blockchain validation and earning yields. The total value locked with USD1 in Kernel DAO is currently around $2.55K, indicating early adoption.
This move represents WLFI’s strategic shift from branding and political associations towards delivering tangible decentralized finance (DeFi) utility and infrastructure participation. The integration improves capital efficiency for stablecoin holders by converting passive assets into yield-generating tools that also enhance network security.
Additionally, the partnership may enhance USD1’s credibility, attracting more technical and institutional users seeking low-volatility assets with productive use cases. The integration could also catalyze wider adoption of restaking for stablecoins in the DeFi space.
It is notable that WLFI has recently rejected a U.S. Senate inquiry into its political and financial affiliations connected to the Trump family, underlining ongoing scrutiny but emphasizing its pivot towards functional DeFi innovations.