> For the complete documentation index, see [llms.txt](https://solarpunkdao.gitbook.io/k1/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://solarpunkdao.gitbook.io/k1/intro-to-k1.md). # Intro to K1 K1 is a synthethic stablecoin protocol designed to finance energy production and make Kardashev 1 type civilization a reality With an aim to provide 9-14% APR to staked holders which could potentially go upto 16-20% if looped using spot leverage on borrowing platforms, yield will be primarily generated via treasury allocations to energy infrastructure projects using either equity or debt instruments. 1. K1 - fully backed, deeply liquid stable 2. yK1 - yield bearing, redeemed for K1 K1 - Stablecoin designed to be fully redeemable for USDC/CASH at any given point in time. K1 will be used for defi and payment related utilities. yK1 - yield bearing portion of K1, minted on staking K1. Primary use as collateral for looping/leverage on lending platforms to maximise yield. Source of yield - Yields for yK1 holders will be sourced from the equity/debt capital allocations to energy infrastructure projects. Treasury management will aim to achieve a minimum of 8% APR on their allocations. All idle capital will be allocate to various liquid yield bearing stables and yield generated here also will be allocated to yK1 holders.