ETH Yield

The KPK ETH 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 ETH yield than KPK ETH Prime.

The Morpho v2 KPK ETH Yield vault is the recommended entry point. It routes to the underlying v1 vault (see Vault Architecture).

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Deposit

Live metrics (Dune)

Key information

Deposit token	WETH
Chain	Ethereum
Protocol	Morpho v1.1 (accessible via Morpho v2)
Vault address (v1)	0xc88eFFD6e74D55c78290892809955463468E982A
Vault token (v1)	kpk_ETH_Yield
Vault address (v2)	0x5dbf760b4fd0cDdDe0366b33aEb338b2A6d77725
Vault token (v2)	kpk_ETH_Yieldv2
Vault standard	ERC-4626
Underlying markets	Morpho markets backed by selected yield-oriented ETH-related collateral
Yield source	Lending rates in the underlying markets, plus MORPHO incentives where available
Allocation model	Automated allocation across approved markets
Risk controls	Per-market caps, withdrawal buffers, 24/7 automation
Liquidity target	Target ≥50% withdrawable liquidity
Performance Fee	0%

Strategy

The vault supplies ETH 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 balanced risk profile across incentive-rich collateral markets, with enforced caps and buffers to support withdrawal liquidity for depositors.

Vault management is fully automated through two dedicated agents operated by KPK. 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.

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
wstETH/WETH	Lido	A	90%	96.5%	Morpho Labs
weETH/WETH	Etherfi	B	90%	94.5%	Etherfi
ETH+/WETH	Reserve	B	85%	94.5%	Reserve
savETH/WETH	Avant	C	85%	91.5%	Avant
lsETH/WETH	Liquid Collective	D	20%	91.5%	Chainlink
ARM-WETH-stETH/WETH	Origin	C	20%	91.5%	Origin
ARM-WETH-eETH/WETH	Origin	C	20%	86%	Origin

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 0xE5aEC7D0E795456F90ceBefBa56470F0E5dfC075