New vault
V
Gauntlet USDC
gtUSDC
KatanaKatana
vbUSDC
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 in vbUSDC (a wrapped stablecoin on Katana) and the vault lends it out on Morpho Blue to borrowers who pledge Bitcoin (vbWBTC and LBTC make up 86% of the vault) and Ethereum tokens (weETH and vbETH) as collateral. Interest rates are set by supply and demand—when borrowers want to borrow more, rates rise.
Who runs it
Gauntlet runs this vault with a Bitcoin-heavy thesis: two-thirds of lending sits against wrapped or liquid Bitcoin collateral at 86% loan-to-value.
Where the yield comes from
The 3.07% APY comes almost entirely from borrowers paying interest (2.92%), with a small 0.15% boost from Morpho's incentive programs. Every dollar is deployed—there's no idle cash sitting on the sidelines.
What could break it
Concentration in Bitcoin collateral (68% in vbWBTC alone) means vault returns swing with BTC price moves and liquidation risk if BTC falls sharply. Utilization is hot across all markets (82–90% borrowed out), so if borrowers panic-repay, yields compress quickly.
Who this is for
Good fit for an allocator comfortable with Bitcoin directional exposure who wants stablecoin yield; avoid if you need capital stability or expect a BTC drawdown.
Risk decomposition
How the composite risk score breaks down. Every number traces to an explicit input — /methodology documents each factor's formula.
mainstream22/100
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 Gauntlet USDC Vault will list a selection of liquid collateral markets and allocate across them to optimize risk-adjusted yield. The Vault's risk strategy will follow the CORE framework, where Gauntlet curates deposits to balance security and yield to provide a moderate risk profile and competitive APY for USDC suppliers.
Yield decomposition
What you are actually getting paid for, expressed as a share of net APY.
Hover for source breakdownTotal · 3.07% gross APY
Curator performance fee−10.00%→3.07% net
Borrower lending demand
Structural
Interest paid by borrowers on Morpho Blue markets the vault supplies into.
2.92%95.1% of yield · 292 bps
Protocol incentives
Incentive
Estimated boost from Morpho-side rewards programs and curator rebates active on these markets.
0.15%4.9% of yield · 15 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 (POL / vbUSDC) is reporting supply APY at or above 50% — peak 113% on POL / vbUSDC. 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.
Vault is split across 8 markets. More markets means more parameter surface area for the curator to monitor.
Hidden exposure map
What this vault is actually exposed to — including dependencies that are not visible from the strategy name.
weETH
3%
Liquid restakingCollateral asset in vault allocations.
vbETH
0%
Lending venueCollateral asset in vault allocations.
LBTC
29%
Lending venueCollateral asset in vault allocations.
wstETH
0%
Liquid stakingCollateral asset in vault allocations.
POL
0%
Lending venueCollateral asset in vault allocations.
vbWBTC
68%
Lending venueCollateral asset in vault allocations.
vbUSDC
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.
Markets7+ idle buffer
vbWBTC / vbUSDC68.3%
LBTC / vbUSDC17.7%
LBTC / vbUSDC11.4%
weETH / vbUSDC2.6%
vbETH / vbUSDC0.0%
wstETH / vbUSDC0.0%
POL / vbUSDC0.0%
idle / vbUSDC0.0%
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 (68% of TVL). Modeled at 50% loss on that exposure; full vault is not assumed at risk since markets are isolated.
−50% × 68% (largest market) × 100% pass-through
-34.1%
Recovery patch + governance
68% exposed
Curator misallocation
unlikely
computedCurator routes into a market that develops bad debt or an oracle break. Worst single position is 68.3% of TVL; top-3 concentration is 97%. Modeled at 50% bad-debt recovery on the worst position.
−50% × 68.3% (worst market) × 100% pass-through
-34.1%
Recovery 30–90 days
68% exposed
$50M same-day redemption
possible
computedVault has $1M idle buffer (16% of $6M TVL). $49M of the $50M request queues; the redeemer takes a ~0.55% forced-exit discount weighted across collateral mix plus 12-day TVM cost. $44M of the request exceeds the vault's $6M TVL and cannot be redeemed at all.
queued 98% of $50M × (0.55% forced-exit discount + 0.30% TVM over 11.8 days at 9.2% rate)
-0.8%
Recovery 0–14 days (queue depth)
98% exposed
L2 sequencer halt 48h
unlikely
computed48h sequencer halt on Katana. 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 32% of TVL sitting in markets above 85% utilization. Total -0.20% NAV loss.
48h × Katana severity 1.5×: bad-debt across 100% of TVL (≈0.04%) + forced-exit discount on 32% stressed-utilization markets (≈0.16%)
-0.2%
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
Katana
CuratorRisk team setting market allocations
OwnerCan change curator, guardian, and timelock (after delay)
GuardianCan pause and revoke allocations if compromised
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
Deployed11 mos on-chain
Jun 24, 2025
One-click redeem
available
Morpho app
Market parameters (8)
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 range0.00% – 18.50%
trailing 180d
APY volatility (σ)5.03 pts
standard deviation
Max APY drawdownNaN%
peak-to-trough
APY trend+3.07 pts
180d delta