USDC Prime Core

The KPK USDC Prime Core vault allocates across selected blue-chip collateral markets (i.e. Tier A only), 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 low-risk USDC yield, with a stricter mandate than KPK USDC Prime: Tier A markets only.

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Deposit

Live metrics (Dune)

Key information

Deposit token	USDC
Chain	Ethereum
Protocol	Morpho v2
Vault standard	ERC-4626
Vault token	KPK_USDC_Prime_Core
Vault address	0x1a1985F50352b58090eb36425AfdFacbaC7806F4
Markets V1 Adapter	0x4498fb9E2f60BbCEA0e1702847ec0F1668011D71
forceDeallocate penalty	0.01%
Underlying markets	Morpho markets backed by Tier A blue-chip 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 90-100% withdrawable liquidity
Performance Fee	0%

Strategy

The vault supplies USDC to approved Morpho markets and allocates across them using tier-based rules. Allocations are executed through the Markets V1 Adapter, a Morpho V2 component that routes vault 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 restricted to Tier A, with enforced caps and buffers to support instant withdrawable liquidity for depositors.

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 Morpho Change Log.

Risk-tier snapshot

Market exposure	Issuer	Risk tier	Allocation cap	LLTV	Oracle
WBTC/USDC	BitGo	A	90%	86%	Chainlink
wstETH/USDC	Lido	A	90%	86%	Chainlink
cbBTC/USDC	Coinbase	A	90%	86%	Chainlink

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 (2/5), with a Permissions Layer for agents, is 0x7a2CE012Fe37dB488C24e31f5e38816cAd82b45E.