> For the complete documentation index, see [llms.txt](https://docs.kpk.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kpk.io/vaults/vaults/morpho/ethereum/usdc-prime.md).

# USDC Prime

KPK USDC Prime is a Prime-category Morpho vault on Ethereum earning USDC yield from Tier A and B blue-chip collateral such as WETH, wstETH, WBTC, and cbBTC, with a 75–100% liquidity target.

The KPK USDC Prime vault allocates across selected blue-chip collateral markets, optimising risk-adjusted yield within isolated lending markets on Morpho. Yield comes from overcollateralised lending rates in underlying markets. <mark style="color:$primary;">Exposure is capped per market, with</mark> <mark style="color:$primary;">**24/7 automation**</mark> <mark style="color:$primary;">and</mark> <mark style="color:$primary;">**liquidity buffers**</mark> <mark style="color:$primary;">to preserve smooth withdrawals and stable, risk-adjusted returns.</mark>

<mark style="color:$primary;">The vault</mark> provides exposure to **low-risk USDC yield**.

<table data-view="cards"><thead><tr><th></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td>Deposit</td><td><a href="https://app.kpk.io/vaults/morpho-usdc-mainnet">https://app.kpk.io/vaults/morpho-usdc-mainnet</a></td></tr><tr><td>Live metrics</td><td><a href="https://dune.com/kpk/kpk-usdc-prime-vault">https://dune.com/kpk/kpk-usdc-prime-vault</a></td></tr></tbody></table>

### Key information

<table data-header-hidden><thead><tr><th width="239.86328125"></th><th></th></tr></thead><tbody><tr><td><strong>Chain</strong></td><td>Ethereum</td></tr><tr><td><strong>Protocol</strong></td><td><a href="/vaults/readme.md">Morpho</a></td></tr><tr><td><strong>Standard</strong></td><td><a href="https://ethereum.org/developers/docs/standards/tokens/erc-4626/">ERC-4626</a></td></tr><tr><td><strong>Token</strong></td><td>USDC</td></tr><tr><td><strong>Address</strong></td><td><a href="https://etherscan.io/address/0x4Ef53d2cAa51C447fdFEEedee8F07FD1962C9ee6#code">0x4Ef53d2cAa51C447fdFEEedee8F07FD1962C9ee6</a></td></tr><tr><td><strong>Markets V1 Adapter</strong></td><td><a href="https://etherscan.io/address/0x1d511811ACA9d8817a3e50F29CadFf6243A02902#code">0x1d511811ACA9d8817a3e50F29CadFf6243A02902</a></td></tr><tr><td><strong>Liquidity target</strong></td><td>75-100%</td></tr><tr><td><strong>Fees</strong></td><td>0% on performance</td></tr><tr><td><strong>forceDeallocation penalty</strong></td><td>0.01%</td></tr></tbody></table>

### Strategy

The vault supplies USDC to approved Morpho markets and allocates across them using tier-based rules. Allocations are executed through a [Morpho v2 adapter component](https://docs.morpho.org/get-started/resources/contracts/morpho-market-v1-adapter-v2#morphomarketv1adapterv2) that routes deposits directly into individual Morpho V1 markets. Markets are enabled only after passing due diligence under KPK’s [Risk Framework](/vaults/infrastructure/risk-framework.md), and each is assigned a risk tier and a per-market cap to limit concentration and enforce diversification.

This vault targets **blue-chip collateral markets**, with enforced caps and buffers to support **instant withdrawable liquidity** for depositors.

Vault management is [fully automated](/vaults/infrastructure/automation.md) through three dedicated agents operated by KPK: a rebalance agent, an exit agent, and a monitoring agent. The 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, alongside depositor and third-party activity against the vault itself.

### Risk framework

This vault follows KPK’s [Risk Framework](/vaults/infrastructure/risk-framework.md) for market selection (onchain/offchain review, external signals), tiering, and ongoing monitoring. Material parameter changes and their rationale are recorded in the [Changelog page](https://docs.kpk.io/changelog).

#### Risk-tier snapshot

<table><thead><tr><th width="163.85546875">Market exposure</th><th width="111.34765625">Issuer</th><th width="100.296875">Risk tier</th><th width="140.05078125" align="right">Allocation cap</th><th width="93.34765625" align="right">LLTV</th><th>Oracle</th></tr></thead><tbody><tr><td><a href="https://app.morpho.org/ethereum/variable/0x94b823e6bd8ea533b4e33fbc307faea0b307301bc48763acc4d4aa4def7636cd/weth-usdc">WETH/USDC</a></td><td>–</td><td>A</td><td align="right">90%</td><td align="right">86%</td><td>Chainlink</td></tr><tr><td><a href="https://app.morpho.org/ethereum/variable/0x3a85e619751152991742810df6ec69ce473daef99e28a64ab2340d7b7ccfee49/wbtc-usdc">WBTC/USDC</a></td><td>BitGo</td><td>A</td><td align="right">30%</td><td align="right">86%</td><td>Chainlink</td></tr><tr><td><a href="https://app.morpho.org/ethereum/variable/0xb323495f7e4148be5643a4ea4a8221eef163e4bccfdedc2a6f4696baacbc86cc/wsteth-usdc">wstETH/USDC</a></td><td>Lido</td><td>A</td><td align="right">90%</td><td align="right">86%</td><td>Chainlink</td></tr><tr><td><a href="https://app.morpho.org/ethereum/variable/0x64d65c9a2d91c36d56fbc42d69e979335320169b3df63bf92789e2c8883fcc64/cbbtc-usdc">cbBTC/USDC</a></td><td>Coinbase</td><td>A</td><td align="right">45%</td><td align="right">86%</td><td>Chainlink</td></tr><tr><td><a href="https://app.morpho.org/ethereum/variable/0x0a15460ad263c2186fe0b5df20a8cf71d55f3cfa06de15edcf6138f6b8edd8bf/reth-usdc#advanced">rETH/USDC</a></td><td>Rocket Pool</td><td>B</td><td align="right">45%</td><td align="right">86%</td><td>Fundamental + Chainlink</td></tr><tr><td><a href="https://app.morpho.org/ethereum/variable/0xb8fef900b383db2dbbf4458c7f46acf5b140f26d603a6d1829963f241b82510e/oeth-usdc">OETH/USDC</a></td><td>Origin</td><td>B</td><td align="right">30%</td><td align="right">86%</td><td>Chainlink</td></tr><tr><td><a href="https://app.morpho.org/ethereum/variable/0xfb7d54e0ce71efc8fffd3f4e1db0afa9265882da5cc76604b62adfac64501e80/usdc-lseth#market">LsETH/USDC</a></td><td>Liquid Collective</td><td>B</td><td align="right">10%</td><td align="right">86%</td><td>Fundamental + Chainlink</td></tr></tbody></table>

#### Key risks

* Liquidity and utilisation risk in underlying markets affecting withdrawal latency
* Oracle risk (manipulation, staleness, or failure), affecting pricing and liquidations
* Concentration risk across enabled markets
* Smart-contract and dependency risk (Morpho, collateral assets, and oracle systems)

These risks are actively monitored and managed, but cannot be fully eliminated. See the [Morpho Disclaimer](/vaults/resources/legal/morpho-disclaimer.md).

### Governance and controls

[Critical actions follow a layered process](/vaults/vaults/morpho.md#governance-and-control) designed for transparency, security, and timely response. The [Curator and allocator Safe](https://app.safe.global/settings/setup?safe=eth:0xf8182E5827c06a47A985eC565A3bcd56437a97bE) (2/5), with a Permissions Layer for agents, is\
`0xf8182E5827c06a47A985eC565A3bcd56437a97bE`.


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