Meme Buybacks

Kestrel's Memes turn supported meme tokens into receipts backed by the same underlying token. For example, you buy ZCAT+ with ZCAT and redeem ZCAT+ for ZCAT. The + identifies the receipt; it is a different token with its own mint address.

Rewards received by the system can fund purchases of more underlying tokens. Those buybacks increase the underlying tokens backing each receipt. Your receipt balance normally stays the same while its redemption value changes.

Where the yield comes from

1. You deposit the underlying meme token and receive its + receipt, after applicable fees.
2. Eligible token airdrops and transfer-fee rewards accumulate for that token's strategy.
3. The buyback service takes the configured performance fee from pending base-token rewards and swaps the remaining rewards into the underlying meme token.
4. The purchased tokens increase backing without issuing additional receipts for the buyback.

For example, rewards associated with ZCAT may arrive in ZEC. A completed buyback converts those rewards into ZCAT, increasing the amount of ZCAT backing each ZCAT+. Reward assets and availability differ by token. Rewards waiting to be swapped are not included in the receipt's underlying-token redemption price.

Buybacks are discrete transactions. Prices can remain flat between buybacks and increase when a buyback completes. Reward availability, swap liquidity, execution costs, and service availability affect when that happens. There is no fixed yield or guaranteed buyback frequency.

Price and holdings

The redemption price is the amount of spendable underlying backing per receipt token, including backing held in the configured custody wallet. Pending unswapped rewards and withheld transfer taxes are not spendable underlying backing.

If one ZCAT+ is backed by 1.02 ZCAT, 100 ZCAT+ represents 102 ZCAT before redemption fees and any underlying-token transfer tax. The USD value also depends on ZCAT's market price: you can earn more ZCAT while the dollar value of your position falls.

Net earnings and break-even

Your position shows signed net earnings for the receipts you still hold. Entry costs can make this negative initially. It measures underlying-token value against the remaining position's entry cost, valued at the current token price; underlying USD price changes and profits from previously sold receipts are excluded.

The supporting text shows recent observed backing growth and how much underlying value remains below entry cost. It does not assume that every shortfall is a transfer fee or claim to separately measure gross yield. Once the position reaches its entry cost, it shows "Entry cost recovered," before selling costs.

An estimated break-even time is shown only when holdings reconcile with known cost basis and fresh, positive, actual backing growth is available. Reconstructed price history is excluded. The estimate assumes that recent growth continues; it is not a promised recovery date, and buybacks happen intermittently. Future selling fees, transfer taxes, and network fees are excluded. With missing history, moved tokens, or no usable growth rate, the estimate is unavailable.

Buying and selling

Use the token page's Buy or Sell form. The quote accounts for the configured trade fee, applicable referral discount, and supported underlying-token transfer taxes. Review the quoted output and allow for Solana transaction fees and possible token-account creation costs.

Buying mints receipts at the current backing ratio. Selling burns receipts and returns the underlying token at the current ratio, less applicable fees. Buying later does not grant ownership of earlier growth for free: the entry price already reflects existing backing.

Current meme custody can require the signing service to authorize a sale. If that service is unavailable, a sale may fail before submission and need to be retried. This is separate from the asynchronous strategy-redemption queue described for majors in Redemptions.

Fees

The fee schedule below includes the 15% buyback performance fee. Rates can differ by token. Fees are configurable per vault; use the current transaction quote for your trade.

• Buy / mint: 0.20%. Charged on gross receipt tokens issued by a deposit, reducing receipts received.
• Sell / burn: 0.20%. Charged on the gross underlying-token redemption amount, reducing underlying received.
• Buyback performance: 15%. Charged on pending base-token rewards processed in a buyback, before swapping the remainder.

The performance fee is not 15% of your entire deposit and is not an annual account charge. For example, with 100 units of base-token rewards and a 15% performance fee, 15 units are allocated to the performance fee and 85 are available for the buyback before swap costs and token taxes. Growth in receipt backing reflects the rewards actually retained after these costs.

Additional costs can include the underlying token's transfer tax, swap fees, price impact, slippage, Solana network/priority fees, and account-creation rent. These are separate from Kestrel's mint, burn, and performance fees. Not every token has a transfer tax.

Referral fee discounts and rewards are available for this strategy. See Referrals for eligibility, attribution, and payouts.

Understanding estimated APY

Meme APY annualizes growth in underlying-token backing per receipt, using up to the last 24 hours. For a newer token, at least two valid observations with positive elapsed time can provide an estimate from a shorter period. Missing or invalid observations, stale data, and large gaps can leave APY unavailable.

The calculation compounds the observed backing ratio over a hypothetical year:

APY = ((ending backing price / starting backing price) ^ (365 days / elapsed days) - 1) × 100

For example, about 0.98% growth per day compounds to thousands of percent annually if repeated for a full year. A 3,376% APY means about 34.76 times the starting underlying-token value including principal, assuming that rate persists. It does not mean a guaranteed dollar return. A few hours containing a buyback can produce an especially large estimate.

Mint and burn fees are separate entry/exit costs. The backing growth used for APY already reflects buyback performance fees; do not deduct that performance fee again from the estimate.

For strategy-specific considerations, see Risks.