Kona DeFi Activates Protocol Fee Staking on Abstract, Adds $PENGU Yield

On July 7, 2026, Kona DeFi (@KonaDeFi) activated staking for protocol fees on @AbstractChain. The deposit window is now open, with fee flow distribution coming soon. Stakers will earn rewards in ETH, USDC, and PENGU — in what Kona bills as an industry-first use of PENGU, the token from pudgypenguins, as a yield asset in protocol fee staking.

Kona is a full-stack DeFi protocol built on Abstract, offering trading, lending, volatility derivatives, and yield products designed for consumer audiences. This launch introduces what Kona calls the "Pearl Loop" — a demand mechanism for KONA. In a companion post, Kona said protocol fee yield is directed to PEARL-WETH liquidity providers, and that PEARL can only be obtained by buying it on the open market or by burning KONA to mint it from Kona Points. The protocol says the burn is designed to tighten KONA supply while deepening PEARL-WETH liquidity, aiming to lift staking APY and trading volume over time.

The integration of PENGU into Kona's fee staking mechanism bridges NFT culture with DeFi yield, allowing users to earn rewards from Pudgy Penguins' ecosystem. Stakers can deposit LP tokens to begin accruing fees once the flow starts. No further details on APY or timeline for fee distribution have been released.