Pendle has launched a USDC vault on the Morpho lending protocol, accumulating approximately $15.04 million in deposits since August 4. Depositors can earn a net APY of 14.08%, consisting of a 4.75% base rate from borrowing demand and 9.32% from PENDLE token rewards, with weekly distributions of 7,500 PENDLE tokens. The vault was built in collaboration with Armitage, the curation arm of market maker Wintermute, which allocates deposited USDC across Pendle’s PT collateral markets. Nearly 99.7% of funds are concentrated in the PT-reUSD/USDC market, which has a healthy 72% utilization rate, enabling up to $11.8 million in borrowing capacity. This structure addresses a persistent DeFi challenge: ensuring borrowers can find liquidity when using exotic collateral types like Principal Tokens.
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