> 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/arc/wars-yield.md).

# 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. <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 **ARS-denominated yield**. KPK curates the same strategy on [Ethereum](/vaults/vaults/morpho/ethereum/wars-yield.md).

wARS is part of [wFIAT](https://action.ripio.com/en/blog/chainlink-and-ripio-launch-wars-usd-and-wbrl-usd-price-feeds-bringing-latin-american-currencies-to-defi), 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.

{% hint style="info" %}
**Launch status.** The vault went live alongside Arc’s public mainnet on 16 September 2026. No markets are enabled yet, so deposits sit idle in the vault and returns currently come from the incentive campaign running on it rather than from lending interest. Markets are added as they pass due diligence under KPK’s Risk Framework.
{% endhint %}

<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.morpho.org/arc/vault/0xF0943081f646f21cF5BFBa8e0F670C4248ab0ba5/kpk-wars-yield#overview">https://app.morpho.org/arc/vault/0xF0943081f646f21cF5BFBa8e0F670C4248ab0ba5/kpk-wars-yield#overview</a></td></tr><tr><td>Live metrics</td><td><a href="https://dune.com/kpk/kpk-wars-yield-vault">https://dune.com/kpk/kpk-wars-yield-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>Arc</td></tr><tr><td><strong>Protocol</strong></td><td><a href="https://morpho.org/">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><a href="https://explorer.arc.io/address/0x0DC4F92879B7670e5f4e4e6e3c801D229129D90D">wARS</a></td></tr><tr><td><strong>Address</strong></td><td><a href="https://explorer.arc.io/address/0xF0943081f646f21cF5BFBa8e0F670C4248ab0ba5">0xF0943081f646f21cF5BFBa8e0F670C4248ab0ba5</a></td></tr><tr><td><strong>Markets V1 Adapter</strong></td><td><a href="https://explorer.arc.io/address/0x8Ca7D67eebf323D8E759DDd3bA6D73E1fE8875de">0x8Ca7D67eebf323D8E759DDd3bA6D73E1fE8875de</a></td></tr><tr><td><strong>Liquidity target</strong></td><td>≥50%</td></tr><tr><td><strong>Fees</strong></td><td>0% on performance</td></tr><tr><td><strong>forceDeallocation penalty</strong></td><td>0%</td></tr></tbody></table>

### 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](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 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](/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](https://docs.kpk.io/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](/vaults/vaults/morpho/ethereum/wars-yield.md#risk-tier-snapshot).

#### 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](/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=arc:0x89f810ec64e472bDDA2740dD85D56C051A895eFF) (2/5) is\
`0x89f810ec64e472bDDA2740dD85D56C051A895eFF`.

Vault ownership sits with KPK’s [Security Council Safe](https://app.safe.global/settings/setup?safe=arc:0x8b884f80B3B839F52b6cE168f133e7a5D1f0A537) (5/8), which is also a signer on the Curator Safe.


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