Bitwise PAPY Lending Vault Launches on Morpho with $AUSD Stablecoin
Bitwise Asset Management has launched its PAPY real-world asset lending vault on Morpho, allowing users to deposit Agora's $AUSD stablecoin and earn a variable annual percentage yield of 5%, 6%. The vault lends against approved tokenized collateral, including PST, sUSDai, and PRIME.
The initial set of eligible collateral provides exposure to several real-world credit structures rather than one crypto-native collateral type. Loans are overcollateralized, and interest rates are determined algorithmically.
Bitwise sets the vault parameters, such as eligible collateral, loan-to-value ratios, and interest-rate configurations. The firm does not take custody of deposits or make discretionary decisions over individual user assets. Deposits remain in user-controlled wallets and Morpho smart contracts.