Yield VaultM2 · Funding

Idle Dollars, Lent in Public.
On Morpho, Curated by the Treasury.

USDG already earns interest on Morpho, but choosing markets and watching their risk is work. The Yield Vault does that work in the open: a standard Morpho vault whose allocations, caps and changes anyone can read.

How the vault will work

  1. 01

    Deposit USDG

    You receive vault shares. They are a standard vault token that other apps can read, and you can redeem them for USDG whenever the markets have liquidity.

  2. 02

    Allocated by a public policy

    The treasury, acting as curator, spreads deposits across Morpho markets with published caps per market. Every change passes a timelock before it takes effect.

  3. 03

    Interest accrues to shares

    Borrowers pay interest to the markets, and the value of each share rises. A performance fee, published before launch, goes to the treasury.

Risks, plainly

  • Lending carries the risk that collateral loses value faster than it can be liquidated, leaving bad debt in a market.
  • Morpho is audited and widely used, but no protocol is free of contract risk.
  • Supply rates change every block with borrowing demand. Past rates say little about future ones.
  • The curator decides where deposits go. Caps and the timelock limit that power; they do not remove it.

FAQ