kHOLE is a POC smart contract built on top of Blockswap's kETH Vault. The contract allows LST holders to swap to ERC-20 tokens at a discount to market rate (from oracle). Token suppliers are entitled to perpetual fee emissions and a share of minted kETH.
This concept was featured in a talk by Blockswap Labs during the ETHCC 2023 conference in Paris, France: https://www.youtube.com/watch?v=5kNPYcYo1Zg (at 16:54)
The Blockswap DAO Grants Council is considering a grant to continue funding the development of this smart contract and dApp.