Bitwise Expands PAPY Vault to Include USDC Deposits on Arc Blockchain
Bitwise Asset Management has expanded its Premium RWA Vault (PAPY) to include USDC deposits on the Arc blockchain. The new PAPY-$USDC vault allows users to deposit $USDC through Morpho, a DeFi lending protocol, and receive overcollateralized loans backed by tokenized real-world assets (RWAs).
The target yield for these loans is 5-6% APY, and Bitwise sets the parameters for the vault, including acceptable collateral and loan-to-value ratios. However, it does not take custody of user funds.
The PAPY-$USDC vault currently accepts collateral from Huma Finance and USDai, with excess liquidity allocated to lending markets backed by cirBTC.