USDC Yield RWA
The KPK USDC Yield RWA vault allocates across selected real-world-asset collateral markets, 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 lends against KPK-vetted real-world assets, a distinct risk profile from KPK's crypto-collateral vaults.
Depositors supply USDC and earn the borrow rate paid by borrowers who post tokenised real-world assets as collateral. The vault does not hold those assets, so depositors take credit and liquidation risk on them rather than price exposure to them.
Key information
Deposit token
USDC
Chain
Ethereum
Protocol
Morpho v2
Vault standard
ERC-4626
Vault token
Vault address
Markets V1 Adapter
forceDeallocate penalty
0.01%
Underlying markets
Morpho markets backed by selected tokenised real-world 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. 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 markets collateralised by tokenised real-world assets, principally private credit and tokenised funds, with enforced caps and buffers to support withdrawal liquidity for depositors.
KPK allocates into markets that already have other curators supplying alongside us, rather than creating its own RWA markets. Real-world-asset collateral is redeemable only through its issuer, on the issuer's schedule, so a supplier's practical exit is the market's free liquidity rather than a sale of the collateral. Supplying to a shared market preserves the option to withdraw ahead of other suppliers if an underlying asset deteriorates; a market where KPK were the sole supplier would remove that option.
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.
Real-world-asset markets differ from the crypto-collateral markets in KPK's other vaults in three ways that shape how this vault is run:
Collateral prices are reported, not traded. Each market's oracle reads a net asset value published by the asset's issuer or administrator, not a market price from a trading venue. A price that only moves when the issuer posts a new value cannot reflect deterioration between prints.
Liquidation depends on redemption, not resale. Tokenised credit and fund collateral has little or no secondary market, and holders are often restricted to permissioned addresses. A liquidator's exit is issuer redemption on the issuer's timetable, so liquidations can clear slowly or not at all.
Exits are bounded by market liquidity. Because the collateral cannot be sold quickly, a supplier's withdrawal capacity is the borrowers' repayments and whatever liquidity is unborrowed, not the size of the collateral pool.
Market selection is set against these constraints. Allocation caps are sized so a full loss on any single market is absorbable, and are set per market rather than by tier default.
Risk-tier snapshot
The vault is deployed and seeded with a nominal test deposit, ahead of its first allocation. The markets below are under assessment and are not enabled until due diligence completes and caps are set onchain. This table will be replaced with enabled markets and their onchain caps at that point.
Figures are indicative. For current values, see the Morpho UI and Morpho Change Log.
Key risks
Credit risk on the underlying real-world assets, including borrower default, servicer failure, and originator concentration within a single asset
Liquidation risk where collateral has no secondary market and is redeemable only through its issuer, so a liquidation may not clear at the oracle price or within a predictable period
Oracle risk on issuer-reported net asset values, including stale prints, an absence of automatic downward revaluation, and issuer discretion over when a decline is recognised
Liquidity and utilisation risk in underlying markets affecting withdrawal latency, with exits bounded by market liquidity rather than collateral value
Concentration risk where separate markets share an underlying asset, issuer, or oracle, so exposures that appear diversified can move together
Counterparty and legal risk on issuers, administrators, and the structures holding the underlying assets, including bankruptcy remoteness and redemption enforceability
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
0xFfbCF26270A90FCdAAF56AcF6e235730B04546c4.
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