wARS Yield
The KPK wARS Yield vault allocates across selected 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 provides exposure to ARS-denominated yield, KPK’s first vault on a wFIAT stablecoin.
wARS is part of wFIAT, Ripio’s suite of fully collateralised local-currency stablecoins pegged 1:1 to their respective fiat currencies. Each wARS is backed by Argentine pesos held in reserve at regulated financial institutions, and is minted and redeemed through Ripio, a Latin American crypto platform operating since 2013.
Key information
Deposit token
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 blue-chip collateral
Yield source
Lending rates in the underlying markets
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 wARS 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, with enforced caps and buffers to support withdrawal liquidity for depositors. wARS is the loan asset rather than the collateral: WBTC, WETH, USDC and USDT holders borrow wARS, and depositors earn the rate those borrowers pay.
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
Figures are indicative. For current values, see the Morpho UI and Morpho Change Log.
Key risks
Thinner onchain liquidity for wARS than for KPK’s other deposit assets, which can widen slippage for liquidators converting seized collateral and slow how quickly a liquidation clears
Currency risk on ARS, including devaluation, elevated volatility, and the effect of Argentine capital controls on convertibility
Oracle risk on the Chainlink USD/ARS feed, which references a crypto-derived rate rather than an official or onshore rate and has a short onchain history. Every enabled market prices its wARS leg off this one feed, so a divergence moves effective collateralisation across all of them together
Issuer risk on Ripio, including reserve management and redemption availability for wARS
Liquidity and utilisation risk in underlying markets affecting withdrawal latency
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
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