> For the complete documentation index, see [llms.txt](https://docs.plutus.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.plutus.fi/products/plsassets/plskdk.md).

# plsKDK

<div align="left"><figure><img src="/files/YHu6ypcOjfUA2pA91N3a" alt="" width="150"><figcaption></figcaption></figure></div>

A quick reference on [plsASSETs](/products/plsassets.md).

**plsKDK** is a plsASSET for **KDK**, Kodiak Finance’s governance and utility token on **Berachain**. By converting KDK into plsKDK, users gain exposure to **xKDK** rewards without locking their capital in xKDK’s 180-day vesting process.

### Converting to plsKDK

You can convert your KDK into plsKDK on the Plutus [dApp](https://plutus.fi/Assets). You can also convert your plsKDK back into KDK just as easily.

### plsKDK rewards

When you stake your plsKDK in the Plutus dApp, the underlying KDK is **permanently staked** into xKDK and you get to enjoy the **overcollaterized rewards**. The rewards are determined by Kodiak Finance and are paid to the plsKDK holders. You can also unstake your plsKDK without the waiting period of xKDK. Plutus does, however, take a fee on the yield and retain the governance rights of the xKDK token.

### Fees

Plutus takes a 12% **performance fee** on the underlying **xKDK** **yield**. Generally this fee is outweighed by the overcollaterization, resulting in higher net yield for your plsKDK, but the protocol can't guarantee that to be always the case. The fee is used to **overcollaterize** the pair and provide liquidity. Additionally, the fee is taken into account in performance metrics, so what you see is what you get.

### Overcollaterization

Like all other plsASSETs, plsKDK is an overcollaterized asset, meaning there are more yield-bearing than yield-earning tokens. The level of overcollaterization defines the amount of **extra yield** paid to plsKDK holders from the underlying staked tokens.

### plsKDK Diagram

<figure><img src="/files/NqJ3mLp2EYcwHRzPyyz6" alt=""><figcaption></figcaption></figure>

### Additional reading

* KDK in Kodiak Finance's [documentation](https://documentation.kodiak.finance/tokens/kdk).
* [plsKDK audit](https://bwrk.dev/audits/plskdk-report)