KPK TM Monthly Community Update - January & February 2026
kpk is publishing the first edition of these monthly updates, designed to complement the Arbitrum Foundation’s ATM Council reports and provide the community with deeper insight into treasury activity, market context, and program execution. This report aims to enhance transparency by outlining recent developments, performance metrics, and the strategic considerations guiding ongoing initiatives.
Treasury Management
Infrastructure
kpk manages the Arbitrum treasury under a community-approved mandate, deploying capital across approved protocols while the Arbitrum DAO retains full control over funds and permissions at all times. This is enforced through a non-custodial setup: kpk holds no custody over assets, and every action it can take is bounded by onchain rules approved by the community.
The technical foundation is Safe multi-sig combined with the Zodiac Roles Modifier module. Safe provides a widely adopted, battle-tested smart wallet infrastructure already used across Arbitrum DAO. Zodiac allows the Safe owner to assign specific, customisable permissions to designated addresses, limiting them to approved actions, contracts, and parameters.
Together, Safe and Zodiac give the Safe owner complete control over assets, permissions, and system configuration, while enabling flexible, role-based treasury management that is transparent and verifiable onchain.
Active Management
Following governance approval, the Arbitrum Foundation converted 15M ARB into approximately 4.9M USDC for multi-manager allocation. ZRM (Zodiac Roles Modifier) was deployed and funds were transferred for kpk’s active treasury management in October 2025. Approximately $1.7M of stablecoins were deployed by kpk on October 31st.
During January 2026, $672,530 remained deployed in the Spark USDC vault and $990,510 remained deployed in Fluid. The amount remained consisten during February, with $675,208 deployed in Spark USDC vault and $995,588 deployed in Fluid.
Financial Update & Execution
Asset allocation to kpk:
-
Assets under management (AUM) of $1,664,226, with a capital utilisation of 100%.
-
Asset type: the capital is fully deployed in USDC-denominated lending strategies (Fluid (59.6%), Spark (40.4%)).
-
Yield generation: The allocated funds generated $8,773 (January: $4,328; February: $4,446) during the January–February period — equivalent to 3.21% annualised APY, consistent with the conservative, mandate-aligned risk profile of USDC-denominated lending strategies.
Protocol distribution:
-
The Endowment is deployed across 2 protocols, maintaining a diversified allocation within stablecoin lending strategies. The largest position is Fluid at 59.6% of total funds ($995,265). Further positions include Spark (40.4%). All positions are USDC-denominated lending deployments on Arbitrum.
Execution:
-
Number of DeFi transactions: 22 during January and February
-
Number of rebalancings: 4 manual rebalancings during January and February, in addition to the hundreds of automated reallocations and rebalancings executed by kpk’s deterministic agents, operating within the onchain permissions approved by the community
-
Risk monitoring and due diligence performed on the relevant protocols and assets
-
Close collaboration with the ATM Committee on ongoing operations as well as planning strategy expansion
Next steps
In early February, the OAT approved the expansion of kpk’s investment mandate to include syrupUSDC as well as kpk USDC Yield Vault v2 on Morpho.
Our operations will continue to include the already approved strategies and assets, with automated rebalancing and reward claiming running continuously. The next update will report on the initial deployment of the expanded mandate and its contribution to overall yield performance.