Automation

At scale, continuous, real-time curation cannot rely solely on manual intervention. kpk uses deterministic agents to support curation. These agents operate within tightly defined permissions and do not exercise discretion. Their role is to execute predefined actions when specific conditions are met. Importantly, automation is deliberately limited. Agents can act quickly, but only within clearly defined bounds. They cannot introduce new strategies, expand exposure beyond approved limits, or bypass risk constraints.

Process

All kpk agents follow the same operational logic:

1. They continuously monitor on-chain conditions and are triggered by a Hypernative alert

2. They fetch all relevant data for all markets

3. They estimate projected market APYs or market utilizations for all feasible allocations

4. They calculate optimal new allocation across markets within predefined risk boundaries that maximise vault APY or minimise exposure

5. If there's a sufficiently high marginal increase or a decrease in risk (according to a predefined parameter), they build the transactions and execute them on-chain

The agents use different EOAs, under strict permissions, and have a separate role attached to the curation safe's roles modifier. The EOAs' private keys are securely generated and stored in an ETH signer vault. To ensure these EOAs always have sufficient gas to cover transactions, a script monitors their ETH balance and automatically tops them up.

Agents

Vault agents monitor borrow utilisation, APY shifts, price divergence relative to reference venues, oracle liveness, and liquidity depth to keep allocations within risk limits and support competitive yields.

• The rebalancing agent improves capital efficiency in normal conditions, allocating and rebalancing across approved markets using tier- and cap-aware rules, subject to safety checks. The agent has only the permission to call the reallocate function on the vault contract.

Rebalancing agent example

Trigger event: On Feb-03-2026 at 09:42:56 AM UTC, a large deposit is made into the kpk USDC Yield vault on Arbitrum

Process: The agent then checks the vault's total assets and runs an algorithm to determine the optimal allocation for each market, based on the specific parameters set by the curation team for each market.

These parameters include, for example, a maximum allocation for each market, based on the risk assessment team's due diligence, and a minimum percentage of withdrawable funds from the vault per market, which ensures liquidity.

Output: On Feb-03-2026 09:43:25 AM UTC, the agent rebalanced the vault's allocations after having identified a higher yield, built the transaction, and executed it with the ETH signer. The curation team is notified that a rebalance has taken place

• The exit agent responds to risk alerts (e.g., oracle staleness, liquidity stress, or severe price divergence) by reducing or disabling exposure, raising the idle buffer, and prioritising safe exits. The agent has only the permission to reduce the cap of the market (so that no funds can be allocated to it anymore) and reallocate the available liquidity out of that market.

Exit agent example

Trigger event: On Feb-10-2026, the curation team wanted to delist a collateral market on the ETH Prime vault on mainnet.

Process: The market had only ~22 WETH in available liquidity, but the vault had an allocation of 13.03 WETH that needed to be removed. By setting up the supply cap to 0, the exit agent automatically fully exited the market.

Output: On Feb-10-2026 10:18:35 AM UTC, the agent successfully executed. The Rebalancing agent's supply cap was reduced from 1b to 0. The curation team is notified that an exit action has taken place.