# \[SIP2.41\] Onboard kpkWETH Prime (Morpho) for ETH Mainnet - Higher Risk

**URL:** <https://forum.summer.fi/t/sip2-41-onboard-kpkweth-prime-morpho-for-eth-mainnet-higher-risk/547>\
**Category:** Summer Improvement Proposals \[SIPs\]\
**Tags:** sip2, ark-onboarding, eth, mainnet\
**Created:** [December 5, 2025, 1:46pm UTC](https://forum.summer.fi/t/sip2-41-onboard-kpkweth-prime-morpho-for-eth-mainnet-higher-risk/547 "2025-12-05T13:46:24Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![samehueasyou](https://avatars.discourse-cdn.com/v4/letter/s/c5a1d2/32.png) [@samehueasyou](https://forum.summer.fi/u/samehueasyou)\
**Post date:** [December 5, 2025, 1:46pm UTC](https://forum.summer.fi/t/sip2-41-onboard-kpkweth-prime-morpho-for-eth-mainnet-higher-risk/547/1 "2025-12-05T13:46:24Z")

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## **Summary**

This SIP proposes onboarding **kpkWETH Prime (Morpho)** as an underlying yield source for the **ETH Mainnet - Higher Risk** vault in the Lazy Summer Protocol.

> **RFC:** _[[RFC] Onboard ETH (Gearbox, Morpho) and USDC (Morpho) kpk-curated vaults](https://forum.summer.fi/t/rfc-onboard-eth-gearbox-morpho-and-usdc-morpho-kpk-curated-vaults/431)_

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.

### **Specification**

| **Parameter** | **Value** |
| --- | --- |
| Vault | ETH Mainnet - Higher Risk |
| Network | Ethereum |
| New ARK | kpkWETH Prime (Morpho) |
| Token | kpkWETH |
| Protocol | Morpho |
| Curator | kpk |
| Contract Address | 0xd564F765F9aD3E7d2d6cA782100795a885e8e7C8 |
| Risk Tier | Higher Risk |

[@Recognized\_Delegates](https://forum.summer.fi/groups/recognized_delegates) @halaprix @BlockAnalitica

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**Author:** ![jensei](https://yyz1.discourse-cdn.com/flex009/user_avatar/forum.summer.fi/jensei/32/69_2.png) [@jensei](https://forum.summer.fi/u/jensei)\
**Post date:** [December 5, 2025, 3:17pm UTC](https://forum.summer.fi/t/sip2-41-onboard-kpkweth-prime-morpho-for-eth-mainnet-higher-risk/547/2 "2025-12-05T15:17:49Z")

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Hey @samehueasyou, thanks for this one! I am excited to see kpkWETH Prime (Morpho) moving forward! As noted by [**Block Analitica**](https://forum.summer.fi/t/rfc-onboard-eth-gearbox-morpho-and-usdc-morpho-kpk-curated-vaults/431/9), 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!

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**Author:** ![kpk](https://yyz1.discourse-cdn.com/flex009/user_avatar/forum.summer.fi/kpk/32/258_2.png) [@kpk](https://forum.summer.fi/u/kpk)\
**Post date:** [December 9, 2025, 3:09pm UTC](https://forum.summer.fi/t/sip2-41-onboard-kpkweth-prime-morpho-for-eth-mainnet-higher-risk/547/3 "2025-12-09T15:09:02Z")

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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](https://handbook.kpk.io/morpho/WETH/#risk-tier-snapshot) 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.

 ![image](https://canada1.discourse-cdn.com/flex009/uploads/summer/original/1X/cb6929ab9bd5f8d9ae482552c84aec7c27754f32.png)

**Conclusion**  
The vault’s collateral composition, liquidity posture and governance controls are now directly aligned with [Summer.fi](http://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.

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**Author:** ![techsqrt](https://yyz1.discourse-cdn.com/flex009/user_avatar/forum.summer.fi/techsqrt/32/389_2.png) [@techsqrt](https://forum.summer.fi/u/techsqrt)\
**Post date:** [December 13, 2025, 10:55pm UTC](https://forum.summer.fi/t/sip2-41-onboard-kpkweth-prime-morpho-for-eth-mainnet-higher-risk/547/4 "2025-12-13T22:55:36Z")

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Similar question as one in SIP 2.42: [[SIP2.42] Onboard kpkUSDC Prime (Morpho) for USDC Mainnet - Higher Risk - #6 by techsqrt](https://forum.summer.fi/t/sip2-42-onboard-kpkusdc-prime-morpho-for-usdc-mainnet-higher-risk/548/6)

Can this minor 3% - ever vacuum more then 3% of the capital. What exactly mechanics guarantees it?

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**Author:** ![jensei](https://yyz1.discourse-cdn.com/flex009/user_avatar/forum.summer.fi/jensei/32/69_2.png) [@jensei](https://forum.summer.fi/u/jensei)\
**Post date:** [March 11, 2026, 3:20pm UTC](https://forum.summer.fi/t/sip2-41-onboard-kpkweth-prime-morpho-for-eth-mainnet-higher-risk/547/5 "2026-03-11T15:20:05Z")

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