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 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 USDC yield than KPK USDC Prime.

The Morpho v2 KPK USDC 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	USDC
Chain	Ethereum
Protocol	Morpho v1.1 (accessible via Morpho v2)
Vault address (v1)	0x9178eBE0691593184c1D785a864B62a326cc3509
Vault token (v1)	kpk_USDC_Yield
Vault address (v2)	0xD5cCe260E7a755DDf0Fb9cdF06443d593AaeaA13
Vault token (v2)	kpk_USDC_Yieldv2
Vault standard	ERC-4626
Underlying markets	Morpho markets backed by selected yield-oriented collateral and structured yield assets
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 USDC 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
stcUSD/USDC	Cap	B	90%	91.5%	Redstone
PT-cUSD-23JUL2026/USDC	Cap	B	75%	91.5%	Pendle
YFI/USDC	Yearn	B	60%	77%	Chainlink
PT-USDG-28MAY2026/USDC	Paxos	B	40%	94.5%	Pendle
savUSD/USDC	Avant	C	75%	91.5%	Chainlink
siUSD/USDC	InfiniFi	C	75%	91.5%	Chainlink
PT-savUSD-14MAY2026/USDC	Avant	C	60%	91.5%	Pendle
MORPHO/USDC	Morpho	C	40%	62.5%	API3
jrUSDE/USDC	Strata	C	40%	91.5%	Strata
sNUSD/USDC	Neutrl	C	40%	91.5%	Neutrl
srRoyUSDC/USDC	Royco	D	20%	91.5%	Royco
srNUSD/USDC	Strata	D	20%	91.5%	Strata
PT-srNUSD-28MAY2026/USDC	Strata	D	20%	91.5%	Pendle
PT-sNUSD-4JUN2026	Neutrl	D	20%	86%	Neutrl

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 0x7E43Df1c1c5A2245858b60D4655fDA83704e4171