New vault
U
Felix USDT0 (Frontier)
feUSDT02
HyperEVMHyperEVM
USD₮0
Morpho official alerts
1 caution alert from Morpho's risk team
- Unrecognized Collateral AssetYELLOWWHLP / USD₮0
Morpho has flagged the WHLP / USD₮0 market: unrecognized_collateral_asset.
AI vault read
Plain-English summary of this vault — what it does, who runs it, where the yield comes from, and what could break it. Generated from the same deterministic inputs shown elsewhere on this page; the numbers are the source, this is just the explanation.
What this vault does
Depositors put USDT0 (a USD-pegged stablecoin on HyperEVM) into this vault, and it gets lent out entirely across five Morpho Blue markets where borrowers pledge thBILL (a tokenized US Treasury bill), kHYPE, UETH, UBTC, and hwHLP as collateral. The interest rate borrowers pay funds the vault's yield; there is no cash sitting idle.
Who runs it
Felix runs this vault, holding a concentrated book skewed heavily toward thBILL (60% of capital) at a high utilization rate (91%).
Where the yield comes from
The 7.53% APY comes from 6.40% in borrowing demand across the five collateral markets plus 1.13% in Morpho protocol incentives and curator rebates. All deposited capital is deployed; none sits uninvested.
What could break it
The vault's capital is concentrated in thBILL (60%), a tokenized Treasury product with elevated execution and custody risk, at 91% utilization—meaning little buffer if borrower demand drops. USDT0 itself is not a tracked stablecoin, creating potential depeg risk. Morpho has flagged an unrecognized collateral asset on this vault (severity: yellow).
Who this is for
Good fit for yield-focused allocators comfortable with Treasury tokenization and single-chain HyperEVM exposure if liquidity depth suffices; avoid if you require stablecoin purity, depeg insurance, or protocol guardrails on all assets.
Risk decomposition
How the composite risk score breaks down. Every number traces to an explicit input — /methodology documents each factor's formula.
elevated40/100
Warning floorfloor
Hard min from Morpho's own flags on the vault or its active markets.
Structuralweight 28%
Share-weighted collateral quality + LLTV buffer adequacy. Correlation-aware.
Liquidationweight 20%
Headroom (1 − LLTV) measured in σ-units of 30d realized vol, amplified by utilization.
Yield anomalyweight 20%
Peer-cohort z-score plus absolute-yield band. Excess yield is risk you may not yet model.
Concentrationweight 12%
Market HHI + asset-class HHI + curator's universe TVL share.
Liquidityweight 10%
Util curve position, share locked above 95%, idle buffer.
Maturityweight 10%
Vintage + TVL-time integral. V2 vaults carry an opacity surcharge.
Depeg floorfloor
Hard min from active depeg signal on the loan asset.
Composite = max(Σ weighted + floors). Warning and depeg floors are hard minimums; the weighted sum of the structural factors is the base. A floor highlighted in amber means it is what determines the final score — the protocol or peg signals are louder than our structural model.
Plain English explanationWritten by VaultScanner research · model card · last update 2026-05-12
What this vault actually does
The Felix USDT0 Frontier vault extends to newer or higher beta collateral markets with tighter risk limits, seeking incremental yield while actively monitoring liquidity, oracle, and concentration risk.
Yield decomposition
What you are actually getting paid for, expressed as a share of net APY.
Hover for source breakdownTotal · 7.53% gross APY
Curator performance fee−10.00%→7.53% net
Borrower lending demand
Structural
Interest paid by borrowers on Morpho Blue markets the vault supplies into.
6.40%85.0% of yield · 640 bps
Protocol incentives
Incentive
Estimated boost from Morpho-side rewards programs and curator rebates active on these markets.
1.13%15.0% of yield · 113 bps
What breaks this vault
The honest version. Every structural failure mode this vault is exposed to, ranked by severity. If you want to know whether to invest, start here.
A market (PT-hbUSDT-18DEC2025 / USD₮0) is reporting supply APY at or above 50% — peak 297996% on PT-hbUSDT-18DEC2025 / USD₮0. This is almost always a degenerate IRM state (100% utilization, dust-sized supply, or a stale post-liquidation snapshot) rather than real lending demand. The vault's headline APY is being averaged up by these positions; treat it as transient. 0.0% of TVL sits in the affected market.
Cap-weighted utilization is 90.5%, leaving little idle buffer. Large same-day redemptions may queue behind active loan repayments.
Hidden exposure map
What this vault is actually exposed to — including dependencies that are not visible from the strategy name.
UETH
9%
Lending venueCollateral asset in vault allocations.
WHLP
1%
Lending venueCollateral asset in vault allocations.
WHYPE
2%
Lending venueCollateral asset in vault allocations.
UBTC
7%
Lending venueCollateral asset in vault allocations.
thBILL
60%
Lending venueCollateral asset in vault allocations.
kHYPE
17%
Lending venueCollateral asset in vault allocations.
hwHLP
3%
Lending venueCollateral asset in vault allocations.
hbUSDT
2%
Lending venueCollateral asset in vault allocations.
PT-hbUSDT-18DEC2025
0%
Pendle PTCollateral asset in vault allocations.
USD₮0
100%
Lending venueLoan asset supplied by the vault.
Reading this map. Direct exposures are the assets the vault holds or lends against. Indirect dependencies (Tab 3) include the protocols that mint those assets, the oracles pricing them, and the bridges that move them. An incident at any indirect dependency can damage the vault even when the direct collateral looks healthy.
Allocation breakdown
Every market the vault has supplied into, with current LTV, LLTV, oracle, and IRM. Idle balances are listed explicitly.
Markets9+ idle buffer
thBILL / USD₮059.8%
kHYPE / USD₮016.5%
UETH / USD₮09.3%
UBTC / USD₮07.1%
hwHLP / USD₮03.5%
WHYPE / USD₮01.7%
hbUSDT / USD₮01.5%
WHLP / USD₮00.5%
PT-hbUSDT-18DEC2025 / USD₮00.0%
idle / USD₮00.0%
Stress scenarios
Modeled NAV impact under historical and hypothetical tail events. Each impact = − (shock magnitude) × (vault exposure) × (pass-through). Hover the calculator icon for the per-scenario formula.
Morpho contract vulnerability
rare
computedTail-case: a vulnerability surfaces in Morpho Blue that affects the vault's largest single market (60% of TVL). Modeled at 50% loss on that exposure; full vault is not assumed at risk since markets are isolated.
−50% × 60% (largest market) × 100% pass-through
-29.9%
Recovery patch + governance
60% exposed
Curator misallocation
unlikely
computedCurator routes into a market that develops bad debt or an oracle break. Worst single position is 59.8% of TVL; top-3 concentration is 86%. Modeled at 50% bad-debt recovery on the worst position.
−50% × 59.8% (worst market) × 100% pass-through
-29.9%
Recovery 30–90 days
60% exposed
Redemption queue under stress
possible
computed99% of TVL is in markets running >85% utilization. Redemption requests on that slice queue until borrowers repay; remaining LPs absorb a small forced-exit discount.
~1% forced-exit discount × 99% (stressed markets only)
-1.0%
Recovery 1–7 days
99% exposed
$50M same-day redemption
possible
computedVault has $0M idle buffer (10% of $2M TVL). $50M of the $50M request queues; the redeemer takes a ~0.50% forced-exit discount weighted across collateral mix plus 13-day TVM cost. $48M of the request exceeds the vault's $2M TVL and cannot be redeemed at all.
queued 100% of $50M × (0.50% forced-exit discount + 0.33% TVM over 12.7 days at 9.5% rate)
-0.8%
Recovery 0–14 days (queue depth)
100% exposed
L2 sequencer halt 48h
unlikely
computed48h sequencer halt on HyperEVM. Collateral drifts while liquidations are frozen; the LLTV buffer absorbs liquidation-clearable moves, the excess accrues as bad debt. Plus a small forced-exit discount on the 99% of TVL sitting in markets above 85% utilization. Total -0.50% NAV loss.
48h × HyperEVM severity 1.5×: bad-debt across 100% of TVL (≈0.01%) + forced-exit discount on 99% stressed-utilization markets (≈0.50%)
-0.5%
Recovery 48 hours + 1–3 day catch-up
100% exposed
Governance & configuration
On-chain contracts, control surface, and per-market parameters. The diligence checklist surface — every value here is what an allocator needs to copy into a memo before sizing a deposit.
Vault contractMetaMorpho v1 on Morpho Blue
Chain
HyperEVM
CuratorRisk team setting market allocations
OwnerCan change curator, guardian, and timelock (after delay)
GuardianCan pause and revoke allocations if compromised
not configured
TimelockDelay before owner-initiated parameter changes take effect
3 days
Performance feeCurator's cut of generated yield
10.00%
Fee recipientAddress that collects the performance fee
Skim recipientReceives stray non-loan-asset tokens swept from the vault
not configured
Deployed10 mos on-chain
Jul 16, 2025
One-click redeem
available
Morpho app
Market parameters (10)
Oracle, IRM, and LLTV per Morpho Blue market the vault routes into. Click an address to inspect the contract on a block explorer.Activity
Curator and parameter changes detected by VaultScanner's snapshot diff. Refreshed every 6 hours.
Historical analytics
180 trailing days. APY, TVL, utilization, and an APY drawdown view to show how the vault has actually behaved — not just where it sits today.
APY range2.65% – 21.69%
trailing 180d
APY volatility (σ)6.28 pts
standard deviation
Max APY drawdown-87.8%
peak-to-trough
APY trend-4.04 pts
180d delta