# 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. 

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