DeFi is entering its institutional phase. Stablecoins have evolved from simple on/off ramp tools into credible cash instruments that anchor treasury operations and payments. In parallel, tokenisation, regulated crypto ETFs, and the emergence of Digital Asset Treasuries (DATs) are channelling persistent inflows of capital onchain.

The result has been deeper, more reliable onchain money markets, delivering greater liquidity and better rates than traditional markets. It is surely only a matter of time until we see widespread adoption of permissionless rails across mainstream finance.

The Opportunity

Capital flows through the most efficient rails, chasing optimal risk-adjusted returns. In practice, stablecoins operate as the default onchain money-market instrument, enabling capital to be parked and deployed into short-term financing activities to earn yield.

The closest TradFi parallel is money-market funds, allocating to T-bills, interbank and repo market transactions and high-grade commercial paper —- a market totaling roughly $7.3 trillion in AUM.

DeFi stands out because of its infancy. Permissionless markets compensate liquidity with a higher risk premium. That premium reflects the operational and risk management requirements—hands-on engineering, live monitoring, and rigorous protocol-risk assessment—which still limit many traditional allocators’ ability to deploy capital onchain, at scale.

This is one of the key opportunities our Onchain Investment Vehicles (“OIVs”) target.

Our Edge

We believe the market for professional asset managers with the deep onchain expertise needed to capture this risk premium remains relatively nascent.

We pursue this opportunity the kpk way: targetting sustainable, long-term strategies with tried-and-tested methodologies; leveraging our purpose-built asset and risk management infrastructure; and building on our five-year track record managing billions of dollars onchain with zero funds lost.

OIVs provide portfolios of any size with the best-in-class asset management solutions that we deliver to leading onchain organisations, but at a fraction of the cost.

As our first financial products, OIVs also bring opportunities for entirely-new forms of edge: they are the first natively-multichain fund products; they take advantage of automated portfolio rebalancing and management through our suite of onchain agents; and they are composable and flexible, capable of holding any form of onchain asset or being integrated into any external DeFi protocol.

We believe they are the optimal blend of professional active management with permissionless and modular DeFi.

Introducing the USD Prime Fund

The USD Prime Fund is a USDC-denominated, multi-chain fund designed to capture DeFi risk premium in a delta-neutral manner. The fund deploys capital across lending markets, carry trades, liquidity provisioning, and yield farming, prioritising liquidity and capital preservation, and targeting low beta to crypto prices.

The fund targets a substantial excess return after fees over defined DeFi savings benchmarks like the USDS Savings Rate.

Capital is allocated using a structured Investment Framework based on three layers, with a strong focus on risk management:

1. Protocol Risk & Onchain Policies – We have developed a comprehensive in-house protocol risk assessment where interaction is restricted to audited, battle-tested protocols. Our the investment mandate is enforced through onchain permission policies, via Zodiac Roles Modifier contracts.
2. Systematic Model – The second layer comprises a proprietary systematic model that blends macroeconomic and market-sentiment indicators, allowing allocation decisions to be guided by a sound risk/return framework without blindly chasing APY. We use empirical signals and machine learning to define market regimes, mapping current conditions to this framework to determine our position and the target DeFi rate. This approach aims to deliver consistent, sustainable returns by balancing expected returns with market context.
3. Monitoring & Autonomous Agents – We implement a comprehensive monitoring and alerts system to stay ahead of potential liquidity and risk events. This infrastructure allows for continuous onchain monitoring of prices, collateral ratios, and pool rebalances. Where risks are notified, our infrastructure triggers agents — automated applications developed by kpk to improve efficiency and eliminate human error — which deliver automated position adjustments in response to specific risks, ultimately safeguarding the fund’s assets.

Invest

To find out more about the USD Prime Fund or contact us to join our waitlist, visit our website.

Disclaimer

The OIVs may not be available to certain persons or in certain jurisdictions, and the availability of the OIVs may be limited in your jurisdiction. The OIVs are not registered with, or approved by, any financial or regulatory authority and do not constitute an investment fund, securities business, or virtual asset service provider. Nothing in this article constitutes, or should be taken as, an offer to sell, a solicitation of an offer to buy, or a recommendation to engage in any investment activity.

The information provided is for general informational purposes only and may be updated or amended at any time without notice. It does not constitute financial, legal, tax, or other professional advice. You should consult with your professional advisers before making any decisions.

Participation in crypto-assets, including through the OIVs, involves significant risk, including high volatility and the potential loss of your entire investment. Returns are not guaranteed. You should conduct research and due diligence before engaging in any crypto-asset activity.