> 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/keystone-finance/reserve-asset.md).

# What is ksUSD?

ksUSD is a carry-backed dollar that earns from funding, lending, and staking.

**Architecture:**

* One Anchor program
* One PDA-owned vault
* One share mint (`ksUSD`)
* **Three internal modes** — picked automatically by the funding signal
* No discretion. No off-chain components beyond the keeper that cranks permissionless instructions.

***

## How ksUSD earns

| Yield source               | Active when                                     | Typical contribution |
| -------------------------- | ----------------------------------------------- | -------------------- |
| **Drift SOL-PERP funding** | Normal & reverse basis modes                    | 5–15% APR            |
| **jitoSOL staking yield**  | Normal basis (jitoSOL collateral)               | \~5.8% APR baseline  |
| **USDC lending carry**     | Always (buffer + reserve + idle parked capital) | \~4–5% APR           |

When the funding signal sits in the dead zone, the active position closes and the entire NAV runs as USDC lending until the next active regime.

***

## Strategy & modes

A single delta-neutral carry strategy runs through three modes, switched automatically by the smoothed funding signal:

* **Normal basis** (funding ≥ +2%) — long jitoSOL on Drift, short SOL-PERP at 1×
* **Reverse basis** (funding ≤ −12%) — post USDC on Kamino, borrow-and-sell jitoSOL, long SOL-PERP at 1×
* **Idle** (dead zone) — close the position, park all NAV in USDC lending

Gross SOL delta stays ≈ 0 in every mode. See [**Strategy & Modes**](/how-it-works/strategy-and-modes.md) for the full mechanics, mode-switch guardrails, and why it composes only on Solana.

***

## Related

* [Whitepaper](/reference/whitepaper.md) — full design, NAV math, security, risk disclosures
* [Deposit](/keystone-finance/deposit.md) · [Withdraw](/keystone-finance/withdraw.md) · [Check position & NAV](/keystone-finance/check-position.md)
* [Strategy & Modes](/how-it-works/strategy-and-modes.md) — the three modes, guardrails, and why it's Solana-only
* [Risk management](/how-it-works/volatility-risk-management.md) — drawdown guard, slippage bounds, dwell timers, depeg / staleness guards
* [Fee structure](/reference/fees.md) — 0% mgmt · 20% perf above HWM · 5% reserve skim


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