> For the complete documentation index, see [llms.txt](https://docs.keystonefi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.keystonefi.xyz/readme.md).

# Introduction

**ksUSD converts SOL staking yield into dollar yield.** You deposit USDC and hold ksUSD, and its price drifts up as the vault earns.

The vault holds staked SOL (jitoSOL) and shorts SOL-PERP against it. The hedge is what makes the conversion possible: it cancels SOL's price moves, so what reaches you is the staking yield denominated in dollars rather than in a volatile asset. When perp funding is positive, the hedge pays you on top. When it stops paying, the vault parks in USDC lending.

Staking is the engine here, not funding — the jitoSOL leg on its own earns more than the vault's whole net APY. See [the whitepaper](/reference/whitepaper.md#i-what-it-converts) for the breakdown.

> **Pre-deployment.** Not yet on mainnet. v1 hedges on Phoenix Perps (Ellipsis Labs), posting USDC as margin via Ember with jitoSOL held unlevered as the spot leg. Backtested funding is a proxy, since Phoenix only launched Dec 2025.

* Deposit USDC and get ksUSD at the current share price.
* Hold it. There is no staking step and nothing to claim. Carry accrues into the price.
* Withdraw whenever you want. Small amounts pay out instantly, larger ones queue.

The vault picks its own mode from an on-chain funding signal and rebalances on a schedule. Nobody has to steer it. See [Strategy & Modes](/how-it-works/strategy-and-modes.md).

***

## How it earns

| Yield source              | Active when             | Mechanism                                                                                                                                                                                         |
| ------------------------- | ----------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **jitoSOL staking yield** | Normal basis            | **Most of the return.** About 7% APR, embedded in the jitoSOL/SOL rate. This is the spot leg of the hedge.                                                                                        |
| Phoenix SOL-PERP funding  | Normal basis            | Upside, not the engine. The vault shorts the perp and collects funding when it clears the dynamic threshold. Phoenix has been paying near zero, so treat this as a bonus rather than a base case. |
| USDC lending carry        | Buffer, reserve, parked | Lent on the Kamino USDC reserve. Everything the vault holds runs here whenever hedging isn't worth it.                                                                                            |

Two terms worth pinning down. **Funding** is a payment perp traders make to each other every few hours to keep the perp price near spot. When more people are long than short, the longs pay the shorts, so a short position gets paid to sit there. **Delta-neutral** means the vault holds staked SOL and shorts the same amount of SOL, so the two cancel and SOL's price stops mattering to your return — near zero, not exactly zero. See [Risk](/how-it-works/volatility-risk-management.md).

When the hedge stops paying for itself, the short closes, jitoSOL converts to USDC, and everything runs as USDC lending until it's worth running again.

***

## How to use it

```
deposit                  USDC → mint ksUSD at current share price
withdraw_instant         burn ksUSD → USDC from the vault's liquidity buffer
request_withdrawal       burn ksUSD now (locks redemption price), queued for payout
process_withdrawal       permissionless crank — fulfill queued requests in FIFO order
claim_wind_down          (wind-down only) burn ksUSD → pro-rata USDC
```

* The ksUSD share price drifts up over time.
* Performance fees apply only above the high-water mark, at the vault level.
* [Fee structure →](/reference/fees.md)

***

## Why Solana

The strategy needs four things in one place: an on-chain perp to hedge with, a high-yield staking token, deep USDC lending, and fees cheap enough to rebalance often. Solana has all four close enough together to compose.

Ethereum doesn't line up the same way. Gas makes frequent rebalancing expensive, and staking yield, funding, and lending live in separate places. The spot leg also earns less there: jitoSOL runs near 5.8% on Solana staking plus MEV, against roughly 3% for Ethereum staking tokens. Full detail is in the [whitepaper](/reference/whitepaper.md#iv-why-solana).

***

## Why on-chain carry, not RWA

RWA dollars earn whatever T-bills earn, so their yield rises and falls with interest rates. ksUSD earns from crypto funding, staking, and lending, which move on their own schedule.

So it isn't a higher-yielding RWA dollar. It's a different kind of dollar: uncorrelated to the Fed, and fully on-chain, so you can check the yield and the collateral yourself instead of trusting an off-chain custodian.

***

## Doc map

**Users:** [Deposit](/keystone-finance/deposit.md) · [Withdraw](/keystone-finance/withdraw.md) · [Check position](/keystone-finance/check-position.md)

**Builders:** [Quick start](/for-developers/quick-start.md) · [Instructions](/for-developers/instructions.md) · [Accounts](/for-developers/accounts.md) · [Events](/for-developers/events.md) · [Errors](/for-developers/errors.md)

**Operators:** [Keeper bot](/for-operators/keeper-bot.md) · [Monitoring](/for-operators/monitoring.md) · [Admin ops](/for-operators/admin-ops.md)

**Reference:** [Whitepaper](/reference/whitepaper.md) · [Historical simulation](/reference/historical-simulation.md) · [Fees](/reference/fees.md) · [NAV & pricing](/reference/nav-calculation.md) · [Security](/reference/security.md) · [Protocols](/reference/protocols.md)

***

## Program

| Network | Program                                        | Address                                        |
| ------- | ---------------------------------------------- | ---------------------------------------------- |
| Devnet  | `keystone_finance` (ksUSD vault)               | `E7tpCcxtvuTXLAckBGWb1AsndpLQ1Y9hQA3iGYSXz2vJ` |
| Mainnet | `E7tpCcxtvuTXLAckBGWb1AsndpLQ1Y9hQA3iGYSXz2vJ` | Pending audit / deploy                         |