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 overcollateralised 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.
Key information
Deposit token
USDC
Chain
Arbitrum
Protocol
Morpho v2
Vault standard
ERC-4626
Vault token
Vault address
Markets V1 Adapter
forceDeallocate penalty
0.01%
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 target
Target ≥50% withdrawable liquidity
Performance Fee
0%
Strategy
The vault supplies USDC to approved Morpho markets and allocates across them using tier-based rules. Allocations are executed through the Markets V1 Adapter, a Morpho V2 component that routes vault deposits directly into individual Morpho V1 markets. Markets are enabled only after passing due diligence under KPK’s Risk Framework, and each 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 withdrawable liquidity for depositors.
Vault management is fully automated through three dedicated agents operated by KPK (see Automation Layer): a rebalance agent, an exit agent, and a monitoring agent. 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, alongside depositor and third-party activity against the vault itself.
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
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 (2/5), with a Permissions Layer for agents, is
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