What is $KKF - The "Lower-Risk" Polygon Tokenized Portfolio

Introduction

Crypto is daunting to learn… There is a very steep learning curve that creates a barrier for entry which prevents a lot of people from participating in the space.  Decentralized finance (DeFi) does not readily offer a lot of the “easier” forms of investment like traditional finance (TradFi), such as ETFs and index funds. In TradFi, you don’t really need to know anything in order to one-click invest.  Apps like Robinhood and Webull have grown in popularity, and stock market investing has become widely available to anyone.

Currently cryptocurrencies, and the technology behind them, are poised to revolutionize the way the traditional monetary systems operate. They are likely to usher in a new form of currencies around the globe, with some countries such as El Salvador even adopting BTC as legal tender!

However, getting into crypto is still hard for a lot of people as they would typically need to research each individual crypto to ascertain if it is a viable investment or not. That process can be extremely difficult as the rules are very different between TradFi and DeFi, subsequently any existing understanding of TradFi may or may not translate to DeFi.

What is $KKF?

$KKF is the index token named “Keir Krew Fund”. Originally by Cyril Keir for members of his trading group, as a safe way to gain exposure to the total growth of crypto as a whole. $KKF solves the learning curve issue of crypto, and brings TradFi maturity to the DeFi space.

$KKF operates with tried-and-true elements from traditional finance, like index funds and ETFs (exchange traded funds), as a way for the more passive crypto investor to easily have their portfolio grow with the crypto industry. By focusing primarily on “bluechip” style crypto assets, it reduces wild price volatility while still allowing your money to grow!

What is Kassandra DAO?

Kassandra DAO is the platform I came across during a deep dive into the managed pools feature made available by the Balancer Protocol. For many years, I had the desire to bring the ease of index funds and ETF for retail investors in the stock market, to decentralized finance. When I read about how managed pools operate, I realized this was the key ingredient that was missing from crypto as a whole.

Kassandra DAO’s platform is incredibly easy to use, intuitive, and the manager dashboard is incredibly comprehensive. Their team has been quick to respond to any quality-of-life improvement requests I’ve made, as well as quick to fix any bugs I come across. I look forward to watching this platform grow, as I fully believe it enables a new level of maturity to be obtained for DeFi.

How does $KKF work?

$KKF acts as a one-stop-shop that lets you buy a piece of a diversified portfolio without having to pick individual cryptos. All Keir Krew Fund ETFs provide exposure to different sectors of the crypto space, and $KKF gives exposure to the following asset classes and assets:

Blue Chip Class:
19.5% BTC 
18.5% ETH
18.5% GOLD (PAXG)
17.25% MATIC

Speculative Class:
5% GNS (Gains Network)
5% QUICK (Quickswap, DEX)
5% UNI (Uniswap, DEX)
5% BAL (Balancer, DEX)
4.5% LINK (Chainlink, Infrastructure)
1.75% CRV (Curve, v3 Staking infrastructure)

When you purchase $KKF, the smart contract takes the money and splits it into the appropriate percentage balances of each asset, then gives you $KKF tokens as a receipt. Purchases and sales of $KKF do not affect the price, the price is set based on the value and weights of the underlying assets. When the market goes up, so does the price of KKF… and vice versa. Users depositing or withdrawing from the fund has no effect on the price, providing safety and security from being dumped on by whales.

When you decide to cash out of the fund, you are provided with two options. You have your choice to cash out as a single asset, such as USDC, or to withdraw the “basket” of assets you own within the fund. So if you decide you want to withdraw your BTC, ETH, Gold, MATIC, GNS, etc, you can!

Composition and Strategy:

The asset composition of $KKF is designed to limit risk by having the majority of the asset weights composed of crypto “blue chips”. The volatility is then softened via 18.5% of the fund being held in the gold-pegged crypto, PAXG. Gold tends to be a lot more stable, and having that in the fund helps reduce the price volatility of crypto, softening the pain of any downward movements.

26.25% of the fund is allocated towards more “speculative” style assets: DeFi infrastructure protocols. These are all protocols that are high-visibility within DeFi, and offer a service essential to the operation of DeFi as a whole.

The strategy for $KKF is simple- Every quarter, our fund manager tracks the growth of each individual asset, the correlation it shares with the overall markets, and each asset’s impact on the growth of the fund. If an asset no longer meets the criteria for this fund, then the fund is adjusted accordingly. If an asset is performing above expectations, then the funds from any removed assets will be deployed into the high performance asset.

When the market cycle reaches a macro top, the fund manager will convert the assets within the fund over to stablecoins like USDC and USDT, securing the profits from the market growth, and protecting your funds from the downtrend that follows a macro top. (Think 2021 market top to 2023 market bottom). Then when the market macro bottom is reached, the fund will re-deploy the stablecoins into assets.

To prevent over-management, this fund is restricted to no more than two (2) asset rebalances per quarter, unless macro top or macro bottom criteria are triggered.

Logistics:

$KKF charges a 2% deposit fee, and a 1% annual fee. The deposit fee is taken immediately upon deposit, and goes to fuel the referral reward system, and so that our fund managers receive some compensation for their time. The annual fee is taken in TINY increments, as that 1% fee is paid out incrementally over the course of the year, so if you’re in the fund for 6 months, then you’d pay half a percent in management fee. That way you’re only paying the management fee for the duration of time you’re in the fund, and saving money where possible!

About Crypto Portfolio Manager Cyril Keir:

Cyril started High School at age 11, graduated and went to college at age 15. Always curious as to how things worked, he spent much of his youth taking apart and put back together anything he could get his hands on. Cyril started his first business at 18 years old, a wireless internet company in rural Virginia, to bring high speed internet to an area predominantly serviced by dial-up internet. He began his investing journey 15 years ago, starting off in traditional finance (TradFi), focused on building a dividend stock portfolio, and trading commodities on the Forex markets. Nine years ago, Cyril started investing in and trading blue chip cryptos, and entered DeFi 5 years ago. Over the years, he’s managed his own portfolio strategically, growing it to over seven figures. Cyril is not shy about admitting that he owes his success in part to his Autism, due to it amplifying his pattern recognition skills. He applies his pattern recognition to charts he’s performing technical analysis on, allowing him to predict with a high degree of accuracy where the price of the asset intends to go.

Next Steps:

Interested in learning more?

Be sure to join us on discord to stay up to date on asset rebalances, quarterly reports, and get all your questions answered!