> 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/ethereum/eth-yield.md).

# 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 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 a **higher ETH yield** than [KPK ETH Prime](/vaults/vaults/morpho/ethereum/eth-prime.md).

<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></td></tr><tr><td>Deposit</td><td><a href="https://app.morpho.org/ethereum/vault/0x5dbf760b4fd0cDdDe0366b33aEb338b2A6d77725/kpk-eth-yield">https://app.morpho.org/ethereum/vault/0x5dbf760b4fd0cDdDe0366b33aEb338b2A6d77725/kpk-eth-yield</a></td></tr><tr><td>Live metrics (Dune)</td><td><a href="https://dune.com/kpk/kpk-morpho-vaults#kpk-eth-yield-vault">https://dune.com/kpk/kpk-morpho-vaults#kpk-eth-yield-vault</a></td></tr></tbody></table>

### Key information

<table data-header-hidden><thead><tr><th width="298.23046875"></th><th></th></tr></thead><tbody><tr><td><strong>Deposit token</strong></td><td>WETH</td></tr><tr><td><strong>Chain</strong></td><td>Ethereum</td></tr><tr><td><strong>Protocol</strong></td><td>Morpho v2</td></tr><tr><td><strong>Vault standard</strong></td><td>ERC-4626</td></tr><tr><td><strong>Vault token</strong></td><td><a href="https://etherscan.io/token/0x5dbf760b4fd0cDdDe0366b33aEb338b2A6d77725">KPK_ETH_Yield</a></td></tr><tr><td><strong>Vault address</strong></td><td><a href="https://etherscan.io/address/0x5dbf760b4fd0cDdDe0366b33aEb338b2A6d77725#code"><code>0x5dbf760b4fd0cDdDe0366b33aEb338b2A6d77725</code></a></td></tr><tr><td><strong>Markets V1 Adapter</strong></td><td><a href="https://etherscan.io/address/0xC0cf47D16a332F9e12E506E9A5C8B4bAf2A6F1f6#code"><code>0xC0cf47D16a332F9e12E506E9A5C8B4bAf2A6F1f6</code></a></td></tr><tr><td><strong>forceDeallocate penalty</strong></td><td>0%</td></tr><tr><td><strong>Underlying markets</strong></td><td>Morpho markets backed by selected yield-oriented ETH-related collateral</td></tr><tr><td><strong>Yield source</strong></td><td>Lending rates in the underlying markets, plus MORPHO incentives where available</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 ≥50% withdrawable liquidity</td></tr><tr><td><strong>Performance Fee</strong></td><td>0%</td></tr></tbody></table>

### Strategy

The vault supplies ETH to approved Morpho markets and allocates across them using tier-based rules. Allocations are executed through the [**Markets V1 Adapter**](https://docs.morpho.org/get-started/resources/contracts/morpho-market-v1-adapter-v2#morphomarketv1adapterv2), a Morpho V2 component that routes vault deposits directly into individual Morpho V1 markets, without passing through an intermediate V1 vault. 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 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**](/vaults/infrastructure/automation.md) 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**](/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 [**Morpho Change Log**](/vaults/vaults/morpho/change-log.md).

#### Risk-tier snapshot

<table><thead><tr><th width="168.8359375">Market exposure</th><th width="108.640625">Issuer</th><th width="104.0234375">Risk tier</th><th width="143.88671875" align="right">Allocation cap</th><th width="83" align="right">LLTV</th><th>Oracle</th></tr></thead><tbody><tr><td><a href="https://app.morpho.org/ethereum/market/0xb8fc70e82bc5bb53e773626fcc6a23f7eefa036918d7ef216ecfb1950a94a85e/wsteth-weth">wstETH/WETH</a></td><td>Lido</td><td>A</td><td align="right">90%</td><td align="right">96.5%</td><td>Morpho Labs</td></tr><tr><td><a href="https://app.morpho.org/ethereum/market/0x37e7484d642d90f14451f1910ba4b7b8e4c3ccdd0ec28f8b2bdb35479e472ba7/weeth-weth">weETH/WETH</a></td><td>Etherfi</td><td>B</td><td align="right">90%</td><td align="right">94.5%</td><td>Etherfi</td></tr><tr><td><a href="https://app.morpho.org/ethereum/market/0x5f8a138ba332398a9116910f4d5e5dcd9b207024c5290ce5bc87bc2dbd8e4a86/eth-weth">ETH+/WETH</a></td><td>Reserve</td><td>B</td><td align="right">85%</td><td align="right">94.5%</td><td>Reserve</td></tr><tr><td><a href="https://app.morpho.org/ethereum/market/0xd98cd88ae5b336086b39fb1d62ba6171282e946105b010143f0e89f8fe7cff36/saveth-weth?subTab=yourPosition">savETH/WETH</a></td><td>Avant</td><td>C</td><td align="right">75%</td><td align="right">91.5%</td><td>Avant</td></tr><tr><td><a href="https://app.morpho.org/ethereum/market/0x8bfd8f4f146c660f201a34b7a05d5eade3dc95b7b329210703855b60ad871a24/teth-weth">tETH/WETH</a></td><td>Treehouse</td><td>C</td><td align="right">30%</td><td align="right">91.5%</td><td>Treehouse</td></tr><tr><td><a href="https://app.morpho.org/ethereum/market/0x2049bea9dfae8189895616ff4bf229c9c664e266b29c9ffe692b100be4879714/arm-weth-steth-weth">ARM-WETH-stETH/WETH</a></td><td>Origin</td><td>C</td><td align="right">20%</td><td align="right">91.5%</td><td>Origin</td></tr><tr><td><a href="https://app.morpho.org/ethereum/market/0x883b22b724b422729ec0688e6ed71da1c5105ac6610810624f25263d7c2e7bf3/arm-weth-eeth-weth">ARM-WETH-eETH/WETH</a></td><td>Origin</td><td>C</td><td align="right">20%</td><td align="right">86%</td><td>Origin</td></tr></tbody></table>

{% hint style="info" %}
*Figures are indicative. For current values, see the Morpho UI and* [*Morpho Change Log*](/vaults/vaults/morpho/change-log.md)*.*
{% endhint %}

#### 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**](/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=eth:0xf8182E5827c06a47A985eC565A3bcd56437a97bE) (2/4), with a Permissions Layer for agents, is\
`0xE5aEC7D0E795456F90ceBefBa56470F0E5dfC075`.


---

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