kpkWETH Prime is a non-custodial ERC-4626 vault managed by kpk, allocating ETH across selected Morpho markets under conservative risk limits. It is designed for institutional capital seeking higher-risk ETH yield, using per-market exposure caps, liquidity buffers, and automated rebalancing to maintain stability and smooth withdrawals.
This SIP follows the earlier RFC on kpkWETH Prime (Morpho), formalizing DAO approval to include the strategy in the ETH Mainnet - Higher Risk vault.
Motivation
Broaden ETH Higher-Risk Lending Exposure kpkWETH Prime (Morpho) expands the ETH Mainnet - Higher Risk vault’s access to high-quality lending markets on Morpho, improving yield robustness while remaining within the higher-risk band.
Protocol & Curator Diversification Adding a kpk-curated Morpho strategy reduces reliance on any single lending protocol or curator, and balances Gearbox exposure with Morpho-based yield.
Hey @samehueasyou, thanks for this one! I am excited to see kpkWETH Prime (Morpho) moving forward! As noted by Block Analitica, the ARK aligns with the Higher-Risk ETH Fleet parameters and adds more high-quality lending exposure while keeping risk in check. This onboarding should help diversify the ETH Lower-Risk vault and strengthen yield robustness across the fleet.
Looking forward to the SIP discussion and seeing the initial parameters from @BlockAnalitica!
Thanks for moving this forward. Following @BlockAnalitica’s feedback on the RFC, we’ve made several risk-reducing updates and would like to reflect these changes in the risk tiering.
Request
Classify kpkWETH Prime (Morpho) as Low Risk
Motivation
The vault now fits the Low Risk ETH category:
>97% allocation to highly liquid, blue-chip collateral on Morpho (wstETH, weETH)
Only minor (<3%) exposure to additional ETH-based collateral (rsETH, ETH+, ezETH), strictly capped and easily unwound without affecting exit liquidity
High instant-liquidity coverage , consistently comparable to existing Low Risk ETH ARKs (e.g. WETH Steakhouse, WETH Gauntlet Prime)
Continuous curation and conservative utilisation constraints preserve exit capacity at all times
Updates
To align fully with BA’s feedback. We have applied two additional risk-reducing measures:
The WBTC/ETH market has now been removed from the vault’s allocation universe (limited diversification benefit)
The ETH+ maximum market cap has been reduced from 75% to 20%, significantly lowering theoretical concentration risk. (Currently ~0.5% allocation; this parameter sets the upper bound, not a target weight)
These changes ensure the vault is focused on highly liquid ETH collateral and preserves strong exit capacity under all market states.
Conclusion
The vault’s collateral composition, liquidity posture and governance controls are now directly aligned with Summer.fi’s Low Risk ETH requirements and comparable to other Morpho ARKs already included in that category.
We are happy to provide updated collateral/exit-capacity dashboards and any additional inputs that would support BA’s evaluation. Thanks again for the collaborative process. We’re looking forward to the onchain vote stage.
