Funds

Absolute USD Return Fund is designed for institutional and accredited investors seeking to benefit from high yields in the crypto space while avoiding exposure to principal price fluctuations. The fund's mandate includes providing liquidity on carefully vetted money markets and decentralized exchanges. It participates in the fixed-yield trading market and acts as a launch partner for new fiat-backed stablecoins. The Absolute USD Return has been one of the first and largest contributors to emerging primitives like tokenized cash-and-carry (Ethena) and stablecoin-based liquid restaking derivatives (where K3 Capital is also a AVS curator). The Fund could directly capture basis trading opportunities, utilizing decentralized perpetual exchange protocols (dYdX, Hyperliquid).

Enhanced ETH Fund is aims to exceed standard staking rewards, making it ideal for passive ETH or stETH holders seeking to elevate their returns with limited amount of marginal risk. This is achieved through recursive non-directional leverage, interest rate arbitrage across non-ETH assets, on-chain liquidity provisioning to decentralized trading venues, and engagement with innovative staking and restaking protocols.

BTC Yield Fund transforms a traditionally unproductive asset into a yield-generating powerhouse. K3 Capital achieves this by bridging native BTC to smart contract-compatible networks, where we engage in lending, borrowing, and non-directional liquidity provisioning opportunities. Tokenized BTC derivatives are used as collateral to borrow non-productive assets, which are then deployed in strategies similar to those used in the Absolute USD Return and Enhanced ETH Funds. Additionally, Bitcoin is utilized in emerging protocol designs, including BTC-focused Layer 2s and liquid restaking derivatives.