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K3 USDT Conservative

USDT·Ethereum·curated by K3 Capital
APY6.42%+0.51% vs 30d
TVL$21.4M
Risk score38/ 100
Plain English explanationWritten by Sharpe Finance research · model card · last update 2026-05-12
What this vault actually does

Brand-new USDT vault with a deliberately narrow market list — wstETH only — and aggressive LLTV under the protocol maximum.

Where the yield comes from

Keep complexity to a minimum. The vault holds USDT lent against wstETH at a conservative LLTV. APY is moderate but the strategy is fully transparent and easy to explain.

Why the APY exists

Single-market exposure to wstETH borrow demand. No incentive stacking and no PT exposure.

Why institutions may trust it

Simplicity is the value proposition. Single market, single oracle, no rebalancing logic.

Why they may not

Curator is new (< 6 months track record). USDT issuer / regulatory risk is present. Single-market design has no diversification.

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.

< 6 months operational track record; limited public incident history.

Tether reserve composition disclosures are limited; tail risk on issuer event.

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