We study the virtual geometry of the moduli spaces of curves and sheaves on
K3 surfaces in primitive classes. Equivalences relating the reduced
Gromov-Witten invariants of K3 surfaces to characteristic numbers of stable
pairs moduli spaces are proven. As a consequence, we prove the Katz-Klemm-Vafa
conjecture evaluating λg integrals (in all genera) in terms of
explicit modular forms. Indeed, all K3 invariants in primitive classes are
shown to be governed by modular forms.
The method of proof is by degeneration to elliptically fibered rational
surfaces. New formulas relating reduced virtual classes on K3 surfaces to
standard virtual classes after degeneration are needed for both maps and
sheaves. We also prove a Gromov-Witten/Pairs correspondence for toric 3-folds.
Our approach uses a result of Kiem and Li to produce reduced classes. In
Appendix A, we answer a number of questions about the relationship between the
Kiem-Li approach, traditional virtual cycles, and symmetric obstruction
theories.
The interplay between the boundary geometry of the moduli spaces of curves,
K3 surfaces, and modular forms is explored in Appendix B by A. Pixton.Comment: An incorrect example in Appendix A, pointed out to us by Dominic
Joyce, has been replaced by a reference to a new paper arXiv:1204.3958
containing a corrected exampl