wARS Yield
The KPK wARS Yield vault allocates across selected 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 ARS-denominated yield. KPK curates the same strategy on Ethereum.
wARS is part of wFIAT, Ripio’s suite of fully collateralised local-currency stablecoins pegged 1:1 to their respective fiat currencies. Each wARS is backed by Argentine pesos held in reserve at regulated financial institutions and is minted and redeemed through Ripio, a Latin American crypto platform that has operated since 2013.
Key information
Chain
Arc
Protocol
Standard
Token
Markets V1 Adapter
Liquidity target
≥50%
Fees
0% on performance
forceDeallocation penalty
0%
Strategy
The vault supplies wARS to approved Morpho markets and allocates across them using tier-based rules. Allocations are executed through a Morpho v2 adapter component that routes 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 blue-chip collateral markets, with enforced caps and buffers to support withdrawal liquidity for depositors. wARS is the loan asset rather than the collateral: collateral holders borrow wARS, and depositors earn the rate those borrowers pay. The collateral set on Arc differs from the Ethereum vault, since the assets and price feeds available on each chain differ.
Vault management is fully automated 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 for market selection (onchain/offchain review, external signals), tiering, and ongoing monitoring. Material parameter changes and their rationale are recorded in the Changelog.
Risk-tier snapshot
No markets are enabled on this vault yet, so there is no allocation to report. Each market added is listed here with its issuer, risk tier, allocation cap, LLTV and oracle, as on the Ethereum vault.
Key risks
Thinner onchain liquidity for wARS than for KPK’s other deposit assets, which can widen slippage for liquidators converting seized collateral and slow how quickly a liquidation clears. Liquidity on Arc is thinner again than on Ethereum
Currency risk on ARS, including devaluation, elevated volatility, and the effect of Argentine capital controls on convertibility
Oracle risk. No ARS price feed is published on Arc yet, which is what currently blocks market deployment. Any market enabled here prices its wARS leg off a single ARS feed, so a divergence in that feed moves effective collateralisation across every enabled market together
Issuer risk on Ripio, including reserve management and redemption availability for wARS
Chain risk. Arc reached public mainnet on 16 September 2026, so its infrastructure, tooling, and onchain liquidity are less established than on Ethereum
Liquidity and utilisation risk in underlying markets affecting withdrawal latency
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) is
0x89f810ec64e472bDDA2740dD85D56C051A895eFF.
Vault ownership sits with KPK’s Security Council Safe (5/8), which is also a signer on the Curator Safe.
Last updated