# USDC Prime RWA

The USDC Prime RWA vault allocates USDC across selected Euler markets backed by tokenised RWA collateral, with a focus on the Securitize ecosystem. Yield comes from overcollateralised lending rates in the 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 **RWA-based yield streams that are less correlated with broader crypto market conditions.**

<table data-view="cards"><thead><tr><th></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td>Product one pager</td><td><a href="https://drive.google.com/file/d/1tRs0O6xp0Y6YR1vvGDHsjoEUvAWHd-FT/view?usp=sharing">https://drive.google.com/file/d/1tRs0O6xp0Y6YR1vvGDHsjoEUvAWHd-FT/view?usp=sharing</a></td></tr><tr><td>Deposit</td><td><a href="https://app.euler.finance/earn/0x2B47c128b35DDDcB66Ce2FA5B33c95314a7de245?network=1">https://app.euler.finance/earn/0x2B47c128b35DDDcB66Ce2FA5B33c95314a7de245?network=1</a></td></tr><tr><td>Live metrics (Dune)</td><td><a href="https://dune.com/kpk/kpk-euler-vaults">https://dune.com/kpk/kpk-euler-vaults</a></td></tr></tbody></table>

### Key information

<table data-header-hidden><thead><tr><th width="247.7578125"></th><th></th></tr></thead><tbody><tr><td><strong>Deposit token</strong></td><td>USDC</td></tr><tr><td><strong>Chain</strong></td><td>Ethereum</td></tr><tr><td><strong>Protocol</strong></td><td><a href="https://app.euler.finance/earn/0x2B47c128b35DDDcB66Ce2FA5B33c95314a7de245?network=1">Euler</a></td></tr><tr><td><strong>Vault address</strong></td><td><a href="https://etherscan.io/address/0x2B47c128b35DDDcB66Ce2FA5B33c95314a7de245">0x2B47c128b35DDDcB66Ce2FA5B33c95314a7de245</a></td></tr><tr><td><strong>Vault token</strong></td><td><a href="https://etherscan.io/address/0x2B47c128b35DDDcB66Ce2FA5B33c95314a7de245">KPK_USDC_Prime_RWA</a></td></tr><tr><td><strong>Vault standard</strong></td><td>ERC-4626</td></tr><tr><td><strong>Underlying markets</strong></td><td>Euler lending markets backed by selected RWA-related collateral</td></tr><tr><td><strong>Yield source</strong></td><td>Borrow rates in the underlying markets</td></tr><tr><td><strong>Allocation model</strong></td><td>Automated allocation across approved markets</td></tr><tr><td><strong>Risk controls</strong></td><td>Per-market caps, withdrawal buffers, 24/7 automation</td></tr><tr><td><strong>Liquidity target</strong></td><td>Target ~12.5% withdrawable buffer</td></tr><tr><td><strong>Performance Fee</strong></td><td>0%</td></tr></tbody></table>

### Strategy

The vault supplies USDC to approved Euler markets and allocates across them under KPK-defined risk limits. Markets are enabled only after passing due diligence under KPK’s [**Risk Framework**](/vaults/infrastructure/risk-framework.md). Each enabled market is assigned a risk tier and a per-market cap to limit concentration and preserve diversification.

The strategy targets tokenised RWA collateral markets on Euler, with a focus on the Securitize ecosystem. The vault is starting with two markets:

* [VBILL](https://securitize.io/primary-market/vaneck-vbill): VanEck-managed fund investing in cash, US Treasury bills, and repurchase agreements, with State Street as custodian
* [STAC](https://securitize.io/primary-market/Securitize-BNY-CLO-Fund): Securitize-launched fund investing in a diversified portfolio of US AAA Collateralised Loan Obligations (CLOs), with BNY as service partner (custodian and sub-adviser)

Additional Securitize-issued markets may be added over time after review under KPK’s Risk Framework.

<figure><picture><source srcset="/files/Ot60Ilc0B3U0ArO7nXI5" media="(prefers-color-scheme: dark)"><img src="/files/HnbJo0qR6nxbS68sbmUX" alt="USDC Prime RWA routing: USDC deposits flow into the Earn vault, which routes into two borrowable USDC vaults (USDC Vault 1 and USDC Vault 2). Each borrowable vault accepts a Securitize-issued DS-token vault as collateral (STAC token vault and VBILL token vault), where whitelisted DS holders deposit to borrow USDC."></picture><figcaption><p>USDC Earn vault routing and DS-backed borrowing collaterals.</p></figcaption></figure>

The vault may also allocate to the [RLUSD](https://app.euler.finance/borrow/0x9bD52F2805c6aF014132874124686e7b248c2Cbb/0xaF5372792a29dC6b296d6FFD4AA3386aff8f9BB2?network=1) market. RLUSD is Ripple’s USD-backed stablecoin on Ethereum, backed by segregated reserves of cash and cash equivalents and issued under regulatory oversight. When utilisation in the Securitize-linked markets is high, this allocation acts as an instant-redemption buffer that supports withdrawal liquidity. When utilisation is low, it maintains a baseline level of yield without altering the vault’s conservative risk posture.

Independent verification of the underlying Securitize assets’ NAV history and volatility is available through KPK’s open-source [Securitize NAV scripts](https://github.com/karpatkey/Securitize_NAV).

Vault management runs through dedicated agents operated by KPK. Automated monitoring is fully in place today, supplemented by manual allocation. The rebalancing and exit agents are being gradually rolled out, scaling with vault TVL, with the full automation expected to wrap up around mid-June 2026. The agents monitor borrow utilisation, APY shifts, oracle liveness, price divergence relative to reference venues, and available liquidity to keep allocations within risk limits and support competitive yields ([Monitoring and Response](/vaults/infrastructure/risk-framework.md#monitoring-and-response)). For the specific scoped permissions and allowed actions, see [Governance and controls](#governance-and-controls) below.

The Earn vault charges no performance or management fee. Yield from the underlying markets flows directly to depositors, net of the curator fees charged at each underlying market: KPK charges a 5% curator fee on borrow interest at the KPK-curated underlying markets (other curators, such as the Euler DAO on the RLUSD market, may set their own fees, typically up to 10%).

### Risk framework

This vault follows KPK’s [**Risk Framework**](/vaults/infrastructure/risk-framework.md) for market selection, tiering, and ongoing monitoring. Reviews consider onchain and offchain diligence, together with external signals where relevant. Material parameter changes and their rationale are recorded in the [**Euler Change Log**](/vaults/vaults/euler/change-log.md).

#### Risk-tier snapshot

<table><thead><tr><th width="156.8203125">Market exposure</th><th width="103.73046875">Issuer</th><th width="101.0078125">Risk tier</th><th width="140.7265625" align="right">Allocation cap</th><th width="111.192626953125" align="right">LTV/LLTV</th><th>Oracle</th></tr></thead><tbody><tr><td><a href="https://app.euler.finance/borrow/0xCf4846E0d8A8667c516B844EB72A4d6e7430101D/0x2Ff596321782FE034102f55af5ad707A4Ce0d6a7?network=1">VBILL/USDC (eUSDC-105)</a></td><td>Securitize</td><td>A</td><td align="right">90%</td><td align="right">90/93%</td><td><a href="https://etherscan.io/address/0x2367f7073E1cD0ce01A63bE37D261a7DDE59b63c">RedStone</a></td></tr><tr><td><a href="https://app.euler.finance/borrow/0x1cFC56665c2718454e8dDf975dC37aF0bc68B5aA/0x8b2d7534Ffcf6c2a9226f439CDaC26c6666E97a9?network=1">STAC/USDC (eUSDC-106)</a></td><td>Securitize</td><td>B</td><td align="right">75%</td><td align="right">82/88%</td><td><a href="https://etherscan.io/address/0xe3F4CA15A085AC6ef8d2461eFC677dD4C1AB3B34">RedStone</a></td></tr><tr><td><a href="https://app.euler.finance/borrow/0x9bD52F2805c6aF014132874124686e7b248c2Cbb/0xaF5372792a29dC6b296d6FFD4AA3386aff8f9BB2?network=1">RLUSD/USDC (eUSDC-70)</a></td><td>Ripple</td><td>A</td><td align="right">90%</td><td align="right">89/91%</td><td><a href="https://etherscan.io/address/0x3bDcB804Fd42Ccb2B7Cf329fa07724bEcB872970">Chainlink</a></td></tr></tbody></table>

> *Figures are indicative. For current values, see the Euler UI and* [*Euler Change Log*](/vaults/vaults/euler/change-log.md)*.*

#### 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 (Euler, collateral assets, and oracle systems)

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

### Governance and controls

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

{% tabs %}
{% tab title="Governance changes (timelocked)" %}
Changes that can expand risk or permissions, such as role updates, enabling a new market, or increasing market caps, execute via KPK multisigs and a **3-day timelock**. The Guardian can intervene during the timelock window if required.
{% endtab %}

{% tab title="Operational changes (not timelocked)" %}
Operational actions within pre-approved bounds are delegated through scoped permissions. These include `reallocate()` on the Earn vault, `submitCap()` as part of Earn-level de-risking, and `setCaps()` on the underlying Securitize USDC vaults to support faster reduction of exposure where needed. This allows agents to respond within seconds.
{% endtab %}
{% endtabs %}

KPK's governance applies to the Earn vault and the borrowable USDC markets only. The Securitize collateral vaults (VBILL, STAC, and other Securitize-issued [ERC4626 wrappers](https://github.com/euler-xyz/evk-periphery/blob/master/src/Vault/deployed/ERC4626EVCCollateralSecuritize.sol)) are governed by Securitize, not KPK.

<details>

<summary><strong>Roles, multisigs and agent permissions</strong></summary>

#### Roles

**Earn Vault**

* **Owner & Guardian:** [Security Council Safe](https://app.safe.global/transactions/history?safe=eth:0x354C92aF243d53A24feb3dFF20372Af7b7c47478) (5/8)\
  `0x354C92aF243d53A24feb3dFF20372Af7b7c47478`
* **Curator & Allocator:** [Curator Safe](https://app.safe.global/transactions/history?safe=eth:0x1572063377a9a4f8065BD7bA0D7fa135cd13051F), with a [Permissions Layer](https://kpk.io/permissions-layer/) for agents (2/5)\
  `0x1572063377a9a4f8065BD7bA0D7fa135cd13051F`

{% hint style="info" %}
KPK does not use Euler's public Allocator role, reducing the attack surface. Automation is instead scoped through KPK’s Permissions Layer and Euler's roles system.
{% endhint %}

**Underlying Euler vaults** (borrowable USDC vaults for VBILL and STAC)

* **Governor Admin:** [Curator Safe](https://app.safe.global/transactions/history?safe=eth:0x1572063377a9a4f8065BD7bA0D7fa135cd13051F), with a Permissions Layer for agents (2/5)\
  `0x1572063377a9a4f8065BD7bA0D7fa135cd13051F`\
  \
  The Curator Safe also acts as Governor of the [Oracle Router](https://create.euler.finance/oracle/0xDA8A71eAb4284C71Be969D4A5de7CdDE60d2b325) used by these markets, aligning vault allocation governance with oracle configuration.

**Securitize collateral vaults** (Securitize-deployed [ERC4626 wrappers](https://github.com/euler-xyz/evk-periphery/blob/master/src/Vault/deployed/ERC4626EVCCollateralSecuritize.sol) of VBILL, STAC, and other DS Tokens, used as collateral in the borrowable USDC markets above)

* **Governor:** Securitize, acting as the designated Transfer Agent for the underlying DS Tokens. These vaults enforce Securitize compliance (whitelisting, jurisdictional rules) at the contract level on every deposit, transfer, and seize; liquidators must also be whitelisted to receive collateral. See Securitize's [Euler integrates DS Protocol for curated lending](https://securitize.io/learn/blog/euler-integrates-ds-protocol-curated-lending) for the issuer-side description of the integration.
* KPK has no admin role on the collateral vaults. KPK's governance covers only the Earn vault and the borrowable USDC markets that lend against them.

#### Agent permissions

* **Rebalancing agent:** may call `reallocate()` to move funds between approved markets.
* **Exit agent:** may call `reallocate()` to move funds to idle, `submitCap()` as part of de-risking, and `setCaps()` on the underlying Securitize USDC vaults to reduce or remove exposure.

Agents are deterministic programs, not AI. They can **only** call the whitelisted functions above. The vault is non-custodial.

For role definitions, see [Euler Earn roles](https://docs.euler.finance/user-guide/euler-earn).

</details>


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