$50M in Two Weeks: Pendle's USDC Vault on Morpho Takes Off

Pendle's collaboration with Armitage, Wintermute's vault curation arm, has yielded impressive results in just two weeks. Their USDC vault on Morpho has attracted $50 million from 230 depositors since its launch on August 4.

Initially, the vault held around $15 million in deposits, but this figure quickly rose to $25 million within two days and crossed $35 million by August 21. By the 1.5-week mark, it had reached $50 million.

The majority of capital, approximately 99.7%, is directed towards a single market: PT-reUSD/USDC. The vault offers rewards in the form of PENDLE tokens, which are distributed weekly at a rate of 7,500 per week on top of base lending yield.

The initial APY figures were attractive, with a net yield of 14.08% broken down into a 4.75% base yield and 9.32% from token rewards. However, more recent figures have settled between 7.15% to 7.88%, reflecting the growth in deposits.

The success of this vault is significant for Pendle as it addresses a long-standing issue: thin liquidity on the borrowing side of PT-backed markets. By aggregating lender capital and directing it towards borrowers, the vault has improved borrowing rates and capacity.