USDC Yield

The kpk USDC Yield vault allocates across selected interest-bearing collateral markets, optimising risk-adjusted yield within isolated lending markets on Morpho. Yield comes from overcollateralized lending rates in underlying markets. Exposure is capped per market, with 24/7 automation and liquidity buffers to preserve smooth withdrawals and stable, risk-adjusted returns.

The vault provides exposure to a higher USDC yield on Arbitrum than Prime alternatives.

The Morpho v2 kpk USDC Yield vault is the recommended entry point. It routes to the underlying v1 vault (see Vault Architecture) and may add MORPHO incentives.

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Deposit

Live metrics (Dune)

Key information

Deposit token	USDC
Chain	Arbitrum
Protocol	Morpho v1.1 (accessible via Morpho v2)
Vault address (v1)	0x2C609d9CfC9dda2dB5C128B2a665D921ec53579d
Vault token (v1)	kpk_USDC_Yield
Vault address (v2)	0x5837e4189819637853a357aF36650902347F5e73
Vault token (v1)	kpk_USDC_YieldV2
Vault standard	ERC-4626
Underlying markets	Morpho markets backed by selected yield-oriented collateral on Arbitrum
Yield source	Lending rates in the underlying markets, plus MORPHO and ARB incentives where available
Allocation model	Multi-market loans across approved Morpho markets
Risk controls	Per-market caps, withdrawal buffers, 24/7 automation
Liquidity buffer	Target ≥50% withdrawable liquidity
Performance Fee	0%

Strategy

The vault supplies USDC to approved Morpho markets and allocates across them using tier-based rules. Markets are enabled only after passing due diligence under kpk’s Risk Framework. Each enabled market is assigned a risk tier and a per-market cap to limit concentration and enforce diversification.

This vault targets a broader, incentive-rich market set on Arbitrum, while maintaining enforced caps and buffers to support instant-exit liquidity for depositors.

Vault management is fully automated through two dedicated agents operated by kpk (see Automation Layer). The agents monitor borrow utilisation, APY shifts, price divergence versus reference venues, oracle liveness, and liquidity depth to keep allocations within risk limits and support competitive yield.

• The rebalancing agent improves capital efficiency in normal conditions, allocating and rebalancing across approved markets using tier- and cap-aware rules, subject to safety checks.

• The exit agent responds to risk alerts (e.g., oracle staleness, liquidity stress, or severe price divergence) by reducing or disabling exposure, raising the idle buffer, and prioritising safe exits.

Both agents can act within seconds and strictly within whitelisted permissions.

Risk framework

This vault follows kpk’s Risk Framework for market selection (onchain/offchain review, external signals), tiering, and ongoing monitoring. Material parameter changes and their rationale are recorded in the Morpho Change Log.

Risk-tier snapshot

Market exposure	Issuer	Risk tier	Allocation cap	LLTV	Oracle
WETH/USDC	—	A	90%	86%	Chainlink
wstETH/USDC	Lido	A	90%	86%	Chainlink
WBTC/USDC	BitGo	A	90%	86%	Chainlink
thBILL/USDC	Theo	B	75%	94.5%	Redstone
sUSDS/USDC	Sky	B	40%	94.5%	Chainlink
weETH/USDC	EtherFi	B	40%	86%	Redstone
RLP/USDC	Resolv	C	10%	86%	Chainlink
PT-thBILL-18JUN2026/USDC	Theo	C	60%	91.5%	Redstone
siUSD/USDC	Infinifi	B	-	91.5%	Chronical

Figures are indicative. For current values, see the Morpho UI and Morpho Change Log.

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.

Governance and controls

Critical actions follow a layered process designed for transparency, security, and timely response.

The Curator and allocator Safe (2/4), with a Permissions Layer for agents, is 0xE8bED28828f4DD93FB98232F8e85c8880D1f7e1d