sBOLD, issued by K3 Capital, is a tokenized yield-bearing vault interest that wraps deposits of BOLD stablecoins into Liquity v2 Stability Pools and accrues value from Stability Pool interest and liquidation proceeds [S1][S2].

Each sBOLD represents a pro-rata claim on a basket of BOLD deposited across three Liquity v2 Stability Pools at administrator-set target weights of wstETH 70%, rETH 20%, and wETH 10% [S1]. Tokenholders earn a pro-rata share of borrower interest paid to the Stability Pools, and the vault auto-converts liquidated collateral into BOLD, so value accrues into the token on a total-return basis rather than by separate distribution [S1][S2].

K3 Capital acts as vault administrator, setting and executing pool allocation ratios, and describes sBOLD as a yield-bearing stablecoin derivative tokenizing the Stability Pools [S1][S2]. The holder receives an ERC-4626 vault token representing a pro-rata claim on the underlying Liquity v2 deposits [S1]. The issuer states no services are offered to U.S. residents through the site while a dedicated U.S. site is in preparation [S3]. Assets are held within Liquity smart contracts rather than an external custodian, and the contracts were reviewed by ChainSecurity [S1].

sBOLD uses the ERC-4626 vault token standard and is currently Ethereum-focused [S1][S2]. Users deposit BOLD and receive sBOLD tokens; the vault allocates across Stability Pools at administrator-set ratios, periodically rebalancing and converting liquidated collateral to BOLD, and depositors retain access to the funds for DeFi allocations [S1][S2]. Contracts are described as as immutable as possible [S1].

<Sources
  retrievedAt="2026-06-22"
  items={[
    { id: "S1", url: "https://blog.k3.capital/p/sbold-turning-a-decentralized-cdp" },
    { id: "S2", url: "https://blog.k3.capital/p/2025-first-half-recap" },
    { id: "S3", url: "https://www.k3.capital/us" },
  ]}
/>


# sBOLD by K3 Capital APY methodology

## 1. Overview

The sBOLD by K3 Capital APY is measured as the annualized yield generated by the sBOLD vault. This yield is derived from an ERC-4626 vault share price, which represents the value of one share in terms of its underlying assets. A 7-day trailing window is utilized to calculate the growth of this share price. As sBOLD by K3 Capital is deployed on Ethereum, the canonical APY is determined by this deployment.

## 2. Data sources

- **EVM chain state reads**: `convertToAssets` on the sBOLD contract at `0x50bd66d59911f5e086ec87ae43c811e0d059dd11` on Ethereum.
- **Asset metadata**: token addresses and decimal precision.
- **External data**: end-of-day price feeds.

## 3. Step-by-step calculation

### Component A: Yield index retrieval

- **Purpose**: Retrieve the daily yield index for sBOLD by K3 Capital.
- **Logic**: The yield index is obtained by querying the `convertToAssets` function on the sBOLD contract (`0x50bd66d59911f5e086ec87ae43c811e0d059dd11`) on Ethereum. This function is called with an input of one share unit to determine the current exchange rate between the vault share and the underlying asset. All returned amounts are normalized by decimal precision.
- **On-chain reads**: `` `convertToAssets(uint256 shares) → uint256` `` — vault share-to-asset conversion at the current block.

### Component B: Trailing yield annualization

- **Purpose**: Annualize the growth of the yield index.
- **Logic**: A 7-day trailing window is applied. The index value from 7 days prior is compared to the current index, and the resulting ratio is annualized by raising it to the power of 365 / 7 and subtracting 1.

### Component C: Cross-chain selection

- **Purpose**: Choose a single canonical APY across all chain deployments.
- **Logic**: sBOLD by K3 Capital is deployed on a single chain (Ethereum), so cross-chain selection is a no-op.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Annualized yield that holding the token accrues relative to its underlying asset.

Asset APY

Tokenized funds

K3 Capital operates through conservative risk management strategies combined with active participation in DeFi protocols, employing interest rate arbitrage opportunities and non-directional leveraged positions across multiple blockchain networks. Their business model combines traditional asset management with hands-on DeFi product development, creating yield-bearing instruments like sBOLD stablecoin and liquid restaking tokens while partnering with protocols like Gearbox, Euler, and Liquity.

The organization manages a suite of non-directional, DeFi-focused investment funds including Absolute USD Return Fund, Enhanced ETH Fund, and BTC Yield Fund, while also developing innovative DeFi products through K3 Capital Labs. They specialize in generating yield through interest rate arbitrages, liquidity pool participation, and bootstrapping total value locked (TVL) for new blockchain primitives, with over $570M in assets under management.

K3 Capital is a decentralized finance (DeFi) asset management firm that has been deploying liquidity on-chain since 2021, serving crypto-native companies and high-net-worth investors.

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K3 Capital

sBOLD by K3 Capital (sBOLD) is a tokenized fund share issued by K3 Capital and managed by K3 Capital Management Inc.

Retail investors, professional investors, accredited investors, qualified investors, qualified purchasers, and institutions can mint and redeem directly with K3 Capital in BOLD.

sBOLD has been issued on Ethereum as an ERC-4626 token since June 2025.

sBOLD by K3 CapitalsBOLD