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Do you love the idea of being able to earn interest on your cryptocurrency while you wait for its market value to improve? The KernelDAO restaking system provides its users with this opportunity. By investing in the protocol, you can temporarily lend your tokens to secure a chain while still using your portfolio's value for other investments.
Read on to learn how this system works and discover whether KernelDAO offers better yields than other protocols. Our guide will explore all the details of this system and help you see if it's right for you.
Key Takeaways:
KernelDAO is a decentralized autonomous organization that manages an entire suite of restaking products.
Looking to trade KernelDAO tokens? Bybit now offers the KERNELUSDT Perpetual contract.
KernelDAO is a decentralized autonomous organization (DAO) that manages an entire suite of restaking products. The KernelDAO infrastructure allows users to earn rewards on ETH, BTC, BNB and other cryptocurrency assets.
KernelDAO was founded by Amitej Gajjala and Dheeraj Borra. Gajjala has a background in engineering and business, while Borra’s is in computer science. The two previously worked together to create Stader Labs, a liquid staking platform. This experience got them interested in restaking. In 2023, they created KernelDAO, and the project was officially open to the public in April 2025.
KernelDAO has over $10.5 million in funding from Binance Labs, Nomura Group and others.
KernelDAO was born out of the desire to create a more efficient type of staking. Usually, people have to give up control of their tokens if they want to receive staking rewards. However, KernelDAO's creators wanted to work in a system in which users could gain staking rewards while still retaining funds to use for other purposes.
There are other restaking systems in the web3 world, but KernelDAO hopes to distinguish itself with its flexibility. Most restaking systems only work with Ethereum-compatible coins. Founders Gajjala and Borra wanted to create a protocol that could handle the BNB Chain, Bitcoin and other types of non-Ethereum chains.
The KernelDAO system is built around the idea of restaking. This method of yield capitalization starts with a user locking tokens in a contract with KernelDAO, which then provides the user with a liquid staking token (LST) that represents the value of their initial token. The original token is staked on its native network to provide security for the network. Meanwhile, the owner of the token can use the LST for trading, lending or other web3 uses. At the end of the restaking period, they turn in their LST with KernelDAO and collect the interest from staking it.
KernelDAO works with a lot of other partners to keep its entire system running. For example, it uses the EigenLayer restaking protocol to provide Ethereum restaking, and it uses other systems' airdrops to provide rewards for its Gain protocol. KernelDAO takes all of these individual products and uses a combination of smart contracts and software to make them more accessible to users. Instead of having to navigate a lot of complex systems, users can simply connect their wallet and let KernelDAO help them earn across multiple systems.
KernelDAO handles several different restaking protocols. Through the KernelDAO website, users can launch apps for each restaking method. Depending upon your needs, you might end up using one or more of the following products.
Kernel is the flagship restaking app. It lets people restake BNB, BTC and other assets. The staked assets are used to fortify security on the BNB chain while users earn yield. Rewards for Kernel users are available as Binance Launchpool rewards.
Kelp is a restaking protocol built on Ethereum. Users can restake from over 10 different Layer 2 networks, with reduced gas fees. Kelp also offers yield options across 50 DeFi platforms, including Aave and Fluid.
Gain is a yield-earning system that doesn’t require people to lock up their tokens. Instead, it offers vaults that can automatically farm airdrop rewards from multiple systems. Users temporarily deposit their tokens, and Gain deploys them across multiple DeFi systems to help users earn rewards.
The KernelDAO project spent most of 2023 getting its technology in place. Once the Kernel restaking protocol was ready to launch, the road map for 2024 shifted to focusing on releasing the KERNEL token. Now that this has been accomplished, KernelDAO’s road map is in an expansion and growth phase.
KernelDAO’s plans for 2025 include releasing new vaults for Gain and adding more asset support for restaking. The project also hopes to implement a slashing mechanism soon. In the future, development plans consist of more omnichain infrastructure and cross-chain bridging.
KERNEL is the governance and utility token for KernelDAO. People who hold it can vote on protocol upgrades and fund allocations for the system, and it can be restaked just like other tokens within the system. KERNEL tokens are also used to provide liquidity for automated market makers (AMMs) within the system. There’s a total supply of 1 billion KERNEL tokens, distributed as follows:
Ecosystem rewards: 35%
Airdrops: 20%
Private sale: 20%
Team and advisors: 20%
Ecosystem partners: 5%
The KERNEL token has gone through many price fluctuations since its release in April 2025.It debuted at a price of around $0.45, but dropped significantly to $0.13 by May. Since then, token prices have mostly stabilized in the $0.10–$0.13 range. CoinMarketCap's market sentiment indicator suggests an overall bullish outcome. Many investors believe the coin is building momentum, and may start experiencing some price increases soon.
Pricing data from CoinCodex doesn't support this belief in a rapid recovery. Its analysis suggests KERNEL’s price will keep dropping through 2025, but predicts that it will rise back above the $0.20 mark by April 2026.
Looking to trade KernelDAO tokens? Bybit now offers the KERNELUSDT Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the KERNALUSDT Perpetual contract page.
If you're interested in buying KERNEL, it's important to keep in mind that this token is struggling right now. While it may work well with some investment schemes, this probably isn't a token you’ll want to buy if your main focus is rapid increase in value. Instead, KERNEL appears more suited for those who enjoy a wait-and-see approach. The low price of this coin and its ongoing utility indicate that it could provide some profits in the long run.
Like any other cryptocurrency, you'll need to use common sense and avoid investing money that you can’t afford to lose. However, as long as you have the right investment strategies in place, buying KERNEL can be a good way to invest in the promising KernelDAO system. As always, it’s recommended you DYOR.
KernelDAO does a great job of providing uncomplicated restaking for all sorts of crypto assets. It's backed by reliable creators with a proven track record of success, and has already attracted a supportive community. Though the related KERNEL token hasn't immediately soared to high prices, this is still a project some investors will be interested in.
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