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K3 Capital ETH Maxi
K3WETH
UnichainDeposits closed
Unichain
WETH
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 supply WETH to K3 Capital's vault, which lends it out on Morpho Blue against weETH (a liquid restaking token) as collateral. Borrowers pay interest on those loans, and that interest flow is what generates the yield—the vault is fully deployed with no idle cash sitting around.
Who runs it
K3 Capital runs an ETH-focused vault with concentrated exposure to a single collateral type (weETH at 100% allocation).
Where the yield comes from
The 0.64% APY comes almost entirely from borrower interest (0.61%), with a small tail from Morpho protocol incentives and curator rebates (0.03%). Utilization on the weETH market sits at 69%, meaning two-thirds of the vault's capital is actively borrowed against.
What could break it
The vault carries two material risks: the weETH liquidation threshold sits at 95%, leaving only a 5% price buffer before collateral gets seized, and weETH itself—an LRT—can trade at a discount to its underlying value or experience depeg events. The risk score of 39/100 reflects these tighter constraints.
Who this is for
Good fit for an allocator comfortable with LRT concentration and tight liquidation bands seeking WETH yield; avoid if you need buffers for sharp LRT repricing or require diversified collateral exposure.
Risk decomposition
How the composite risk score breaks down. Every number traces to an explicit input — /methodology documents each factor's formula.
elevated39/100
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 K3 Capital ETH Maxi enables rehypothecation and just-in-time liquidity to AMMs through capital efficient ETH lending against the most liquid, battle-tested Liquid Staking and Restaking tokens.
Yield decomposition
What you are actually getting paid for, expressed as a share of net APY.
Hover for source breakdownTotal · 0.64% gross APY
Curator performance fee−10.00%→0.64% net
Borrower lending demand
Structural
Interest paid by borrowers on Morpho Blue markets the vault supplies into.
0.61%95.3% of yield · 61 bps
Protocol incentives
Incentive
Estimated boost from Morpho-side rewards programs and curator rebates active on these markets.
0.03%4.7% of yield · 3 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.
Weighted LLTV across markets is 94.5%. Sharp collateral drawdowns can trigger cascading liquidations faster than vault parameters can be adjusted.
Vault has meaningful collateral exposure to liquid restaking tokens. A discount to ETH (>2%) propagates directly through liquidation cascades.
Hidden exposure map
What this vault is actually exposed to — including dependencies that are not visible from the strategy name.
weETH
100%
Liquid restakingCollateral asset in vault allocations.
rsETH
0%
Liquid restakingCollateral asset in vault allocations.
wstETH
0%
Liquid stakingCollateral asset in vault allocations.
WETH
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.
Markets3+ idle buffer
weETH / WETH100.0%
rsETH / WETH0.0%
wstETH / WETH0.0%
idle / WETH0.0%
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 (100% of TVL). Modeled at 50% loss on that exposure; full vault is not assumed at risk since markets are isolated.
−50% × 100% (largest market) × 100% pass-through
-50.0%
Recovery patch + governance
100% exposed
Curator misallocation
unlikely
computedCurator routes into a market that develops bad debt or an oracle break. Worst single position is 100.0% of TVL; top-3 concentration is 100%. Modeled at 50% bad-debt recovery on the worst position.
−50% × 100.0% (worst market) × 100% pass-through
-50.0%
Recovery 30–90 days
100% exposed
ETH market drawdown -30%
possible
computedA 30%+ cycle drawdown in ETH. USD value of the position falls; ETH-denominated yield is unaffected. Applied to 100% of vault TVL (loan asset is WETH).
−30% × 100% exposed × 100% pass-through (loan-asset shock)
-30.0%
Recovery 6–18 months
100% exposed
LRT discount 20%
unlikely
computedAn operator slashing or AVS misbehavior creates a discount in the LRT collateral. 100.0% of TVL is in liquid restaking token (LRT) markets (weighted LLTV 95%). A 20% collateral shock translates to ~3.01% NAV loss after the 6-pt LLTV buffer absorbs liquidation-clearable price moves.
−20% × 100.0% exposed × 15% pass-through (LLTV 95%)
-3.0%
Recovery 30–90 days
100% exposed
$50M same-day redemption
possible
computedVault has $0M idle buffer (31% of $0M TVL). $50M of the $50M request queues; the redeemer takes a ~2.50% forced-exit discount weighted across collateral mix plus 10-day TVM cost. $50M of the request exceeds the vault's $0M TVL and cannot be redeemed at all.
queued 100% of $50M × (2.50% forced-exit discount + 0.22% TVM over 9.6 days at 8.4% rate)
-2.7%
Recovery 0–14 days (queue depth)
100% exposed
L2 sequencer halt 48h
unlikely
computed48h sequencer halt on Unichain. 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 0% of TVL sitting in markets above 85% utilization. Total -0.29% NAV loss.
48h × Unichain severity 1.4×: bad-debt across 100% of TVL (≈0.29%) + forced-exit discount on 0% stressed-utilization markets (≈0.00%)
-0.3%
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
Unichain
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
Deployed12 mos on-chain
May 28, 2025
One-click redeem
available
Morpho app
Market parameters (4)
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 range0.34% – 6.11%
trailing 180d
APY volatility (σ)1.63 pts
standard deviation
Max APY drawdown-94.5%
peak-to-trough
APY trend-0.08 pts
180d delta