The stablecoin yield game usually traps you between two extremes: go for safety and you're stuck with Treasury-level returns around 4-5%, or chase higher yields and watch token inflation dilute your position into oblivion. Neither feels right.

Kernel is betting there's a third path worth taking. They're launching a stablecoin that targets 9-10% APY—substantially better than traditional fixed income, yet without the token dilution concerns that plague reward-heavy protocols.

The question isn't whether this works on paper. The real challenge is whether the economics hold up at scale. That's where things get interesting.