kpkUSDC Prime is a non-custodial ERC-4626 vault curated by kpk, allocating USDC across selected Morpho markets with conservative risk settings. The strategy is designed for institutions seeking conservative, real yield in USDC, using per-market caps, automated rebalancing, and exit mechanisms to preserve liquidity and portfolio stability.
Motivation
Improve USDC Higher-Risk Yield Profile kpkUSDC Prime (Morpho) targets competitive, risk-adjusted yield on USDC within the higher-risk band, adding another high-quality lending source to the USDC Mainnet - Higher Risk vault.
Deeper Morpho-Based Diversification It broadens Lazy Summer’s USDC exposure on Morpho beyond existing sources, spreading risk across multiple markets and curators.
Following @BlockAnalitica’s comment on moving kpk-curated ARKs to the SIP stage, onboarding kpkUSDC Prime (Morpho) into the USDC Mainnet – Higher Risk vault makes a lot of sense. This strategy broadens higher-risk USDC exposure on Morpho, adds conservative, risk-adjusted yield, and strengthens diversification across curators and markets.
Looking forward to seeing the initial parameters and community discussion!
Thanks to @BlockAnalitica and the Summer.fi team for progressing this onboarding to the SIP stage. We appreciate the collaborative process so far.
We request that kpkUSDC Prime (Morpho) is onboarded into the USDC Mainnet – Low Risk fleet, rather than the Higher Risk fleet.
Why this fits the Low Risk category
Since BA’s review on the RFC:
We have fully removed ETH+ exposure by delisting the ETH+/USDC market (see our public Morpho change log)
>99% of the portfolio is allocated to highly liquid, blue-chip collateral on Morpho (wBTC, cbBTC, wstETH, weETH)
Only negligible (<1%) allocations exist to other BTC-backed collateral that are over-collateralised and subject to strict caps, with capacity to unwind without affecting exit liquidity
High instant-liquidity coverage: atomic liquidity has remained strong since launch and compares favourably with existing Low Risk USDC ARKs
As a result, the vault’s collateral and liquidity profile aligns with Summer’s Low Risk criteria, and is explicitly designed for institutional-grade USDC exposure.
Request
To reflect these changes and align with similar Morpho vaults already listed in the Low Risk category, we request to onboard kpkUSDC Prime (Morpho) into the USDC Mainnet – Low Risk fleet on Ethereum.
We’re happy to support BlockAnalitica with:
• Early access to our real-time Dune dashboard (public next week)
• A full data pack: collateral history, utilisation, atomic liquidity, concentration metrics
• Continued visibility through our live Morpho change log.
Happy to answer any further questions from the SummerFi community.
Thanks for the detailed follow up and added transparency.
BA Labs has reviewed the ark kpkUSDC Prime (Morpho) and supports listing it in the USDC Mainnet Low Risk fleet, based on the updated configuration:
• ETH+ exposure has been removed by setting the ETH+ USDC market caps to zero, leaving the ARK with no new collateral exposure on SummerFi protocol level
• The 72 hour TL on parameter changes is acceptable for Low Risk ARKs
We will provide initial parameters accordingly at the SIP stage.
Only negligible (<1%) allocations exist to other BTC-backed collateral that are over-collateralised and subject to strict caps, with capacity to unwind without affecting exit liquidity
Please, explain me as to 5yo - If this sub 1% “riskier” part turns ever into bad debt - it won’t ever vacuum more then 1% of the ark’s capital. What exactly mechanics guarantees it?
