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Steakhouse USDC

USDC·Ethereum·curated by Steakhouse Financial
APY8.94%+0.53% vs 30d
TVL$412.3M
Risk score22/ 100
Plain English explanationWritten by Sharpe Finance research · model card · last update 2026-05-12
What this vault actually does

Conservative USDC vault allocating across blue-chip collateral markets on Morpho Blue with tight LLTV discipline.

Where the yield comes from

Capture organic lending demand from leveraged LRT and LST users on Ethereum mainnet without taking direct exposure to restaking or Pendle PT term structures.

Why the APY exists

Loop demand from wstETH and weETH leverage users has kept utilization above 80% for ten consecutive weeks. The vault is the second-largest USDC supplier in those markets, which gives it premium yield without volume-derived APY decay.

Why institutions may trust it

Curator is one of the longest-tenured risk operators on Morpho with a public incident postmortem history. Allocation list excludes long-tail collateral. LLTV bands are 5–10 points below the protocol maximum.

Why they may not

Concentration in two LRT/LST markets means a sharp depeg event for wstETH or weETH propagates directly. Vault holds no idle buffer, so redemption queues are possible during stress.

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 discount of >2% on wstETH or weETH would trigger cascading liquidations in the LRT/LST markets and could leave the vault holding bad debt if liquidations are slow.

Mitigations in place
  • LLTV is set 7 points below the protocol maximum.
  • Curator monitors secondary market discount continuously.

weETH uses a Chainlink price feed referencing an ETH-denominated rate; an extended staleness event could mis-price the loan.

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