Static Wrapper Vaults

Overview

Static KTokens are ERC-4626 compliant vault wrappers built on top of Kona Lending. They convert rebasing kTokens (e.g., kWETH, kUSDC) into non-rebasing, composable vault shares with a fixed token balance. Instead of your balance increasing over time (as with standard kTokens), interest accrues through an increasing exchange rate.

This makes Static KTokens fully compatible with DeFi protocols that expect standard ERC-20 behavior — including farms, liquidity pools, and other yield strategies.

How It Works

1. Deposit an underlying asset (e.g., WETH) or a kToken (e.g., kWETH) into the Static KToken vault.

2. Receive vault shares (e.g., stataKonWETH) representing your position.

3. Interest accrues via an increasing exchange rate — your share balance stays fixed, but each share is worth more underlying over time.

4. Withdraw at any time by redeeming your vault shares back to either the underlying asset or the kToken.

Deployed Vaults

Vault	Symbol	Underlying	Address
Static Kona WETH	stataKonWETH	WETH	0xb2Bce227EeE640d442a12C224C0B7e6AB23652FB
Static Kona USDC	stataKonUSDC	USDC.e	0xb34e1dFF53791AeAd3F6C795305963b1E82321A1
Static Kona USDT	stataKonUSDT	USDT	0xd9c0AbeFD0c38A7bE0f8D6eB8Cf321EB8c23A6E7
Static Kona PENGU	stataKonPENGU	PENGU	0xc29D50197ee9107B0BEdcfEd7aEb09297078DBA2

Factory: 0xCE5B317e078Fb4982bD8f88B228bd3DBd919A384

Network: Abstract (Chain ID: 2741)

Key Properties

• ERC-4626 Compliant — Standard vault interface supported by virtually all DeFi protocols.

• Fixed Balance — Your token balance does not rebase. Interest is reflected in the exchange rate.

• Composable — Use vault shares in farms, liquidity pools, and other integrations.

• No Lock-Up — Deposit and withdraw at any time without restrictions.

Exchange Rate

Each vault exposes a rate() function that returns the current exchange rate in 27-decimal precision (1e27 = 1:1). For example, a rate of 1.05e27 means 1 vault share is redeemable for 1.05 of the underlying asset.

The exchange rate only increases over time as lending interest accrues in the underlying Kona Lending market.

Depositing

You can deposit into a Static KToken vault in two ways:

Option 1: Deposit Underlying Asset (e.g., WETH)

The vault supplies your tokens to Kona Lending and wraps them into vault shares in a single transaction.

function deposit(
    uint256 assets,
    address receiver,
    uint16 referralCode,
    bool depositToAave    // set to true
) external returns (uint256 shares);

Option 2: Deposit kToken (e.g., kWETH)

If you already have a kToken lending position, you can wrap it directly into vault shares.

function deposit(
    uint256 assets,
    address receiver,
    uint16 referralCode,
    bool depositToAave    // set to false
) external returns (uint256 shares);

Health Factor Warning: Depositing kTokens into a vault removes them from your Kona Lending collateral. If you have active borrows, this will lower your health factor and may put your position at risk of liquidation. Always check your health factor on the lending dashboard before depositing kTokens.

Withdrawing

You can withdraw from a Static KToken vault in two ways:

Option 1: Withdraw to Underlying Asset (e.g., WETH)

Redeems your vault shares and returns the underlying asset directly.

function redeem(
    uint256 shares,
    address receiver,
    address owner,
    bool withdrawFromAave    // set to true
) external returns (uint256 assets, uint256 aTokens);

Option 2: Withdraw to kToken (e.g., kWETH)

Redeems your vault shares and returns the kToken, keeping your lending position active and continuing to earn interest.

function redeem(
    uint256 shares,
    address receiver,
    address owner,
    bool withdrawFromAave    // set to false
) external returns (uint256 assets, uint256 aTokens);

Kona Points

Static KToken vaults do not earn Kona Points directly. However, the vault receipt tokens you receive (e.g., stataKonWETH) can be used in farms and other integrations that do earn Kona Points.

Additional Functions

Function	Description
rate()	Returns the current exchange rate (1e27 precision)
convertToAssets(shares)	Preview how many underlying assets a given number of shares is worth
convertToShares(assets)	Preview how many shares a given amount of underlying assets would mint
previewDeposit(assets)	Preview shares received for a deposit
previewRedeem(shares)	Preview assets received for a redemption
maxDeposit(address)	Maximum deposit allowed
maxRedeem(address)	Maximum redeem allowed for an owner
totalAssets()	Total underlying assets held by the vault

Reward Claiming

Static KToken vaults support reward token distribution from the underlying Kona Lending incentives controller. Users can claim accrued rewards using:

function claimRewardsToSelf(address[] calldata rewards) external;
function claimRewards(address receiver, address[] calldata rewards) external;

Use rewardTokens() to get the list of registered reward token addresses.

Security Considerations

• Vault shares are standard ERC-20 tokens and can be transferred freely.

• The permit function supports gasless approvals via EIP-2612 signatures.

• Meta-transactions are supported for both deposits (metaDeposit) and withdrawals (metaWithdraw).

• Always verify the exchange rate before large withdrawals to understand your expected output.