How it works?

USDkW channels DeFi liquidity into renewable-energy receivables through a structured-credit stack—delivering real-world yield while funding clean energy growth.

Users deposit funds into the USDkW Protocol to mint and stake USDkW, earning yield. The protocol deploys this capital as secured loans to solar borrowers against verified solar collateral. Borrowers make interest (and principal) repayments back to the protocol, which are then distributed to stakers as yield. An energy partner (DE Energy) originates and underwrites these loans, provides junior/first-loss capital to protect depositors, and delivers ongoing O&M services to keep the solar assets performing and cashflows reliable.

The USDkW protocol revolves around three key participants:

• Lending/Depositing Users: Earn yield on their USDC/USDT deposits by minting USDkW and staking them for sUSDkW

• Borrowers: SMEs especially in emerging economies with real businesses in need of energy and often ignored by traditional credit markets. Borrowers could also be EPC companies

• Energy Partner: originates the loan, underwrites it, and provides junior (first-loss) capital towards the loans. As an energy expert, it also provides O&M services to the solar borrower. For now, our parent company, "Distributed Energy" will play this role but eventually multiple such entities can be a part of the protocol.

  • As an Originator, it finds the borrower + DD / credit scoring

  • As an Underwriter, it

  • As a Pre-financer, it executes Receivables Purchase Agreement (RPA) — sells receivables or plant ownership to the SPV.

  • As a Servicer, it manages Post-sale, billing, O&M, customer relationships, and collections. Gets a servicing fee.

  • As a First-Loss Holder, it retains junior tranche to show “skin-in-the-game.”

  • As a Curator / Aggregator, it Curates projects for the SPV to onboard.

USDkW addresses a dual market gap: renewable-energy developers’ need for rapid, scalable project finance, and DeFi’s pursuit of stable, real-world asset-backed yield. It enables capital formation for physical energy infrastructure through an on-chain securitization framework that transparently finances sustainably cash-flow-generating assets.

USDkW User Flow

Users deposit USDC/USDT (or buy with USD) to mint USDkW, which is supported by liquid T-bill reserves. They can then stake USDkW into an ERC-4626 yield vault to receive sUSDkW, which earns yield from senior claims on tokenized solar receivables. Loan repayments flow into the vault and are distributed to sUSDkW holders, while a portion is retained by the protocol treasury; treasury value accrues to NRG holders per the protocol’s distribution policy.