Understanding the operation logic of a reward engine, the core is actually this cycle: institutions extract credit line liquidity → settlement → repayment → capital recycling.

The steps are as follows:

First, liquidity is minted into KUSD. Since institutions need stablecoins, this step converts the underlying assets into protocol-native stablecoins.

Then, KUSD enters the staking pool and becomes sKUSD. This is the key to earning interest — holders earn yields through staking while providing liquidity support for the protocol.

Finally, institutions extract based on the liquidity of this pool. They obtain the necessary funds, allowing the entire ecosystem's capital to be fully utilized.

This mechanism is similar to the credit cycle in traditional finance, but the difference is that it is fully transparent and automated on-chain. The design of KUSD and sKUSD allows liquidity to meet institutional needs while incentivizing token holders to participate.