DeFi Markets Update 2026-07-14

Jul 14, 2026

Welcome to another DeFi Markets Update—your no-nonsense briefing on the cryptobanking plumbing and market pulse.

The first half of 2026 wasn’t an easy period for onchain lending. Events including the Resolv exploit, the rsETH bad debt event on Aave and heightened market volatility tested risk management across the ecosystem, yet Steakhouse finished the half year with zero bad debt while continuing to grow deposits on Morpho.
The deposits increased from $1.55bn on 1 January to $1.70bn on 1 July. Throughout the period, Steakhouse remained the largest curator on Morpho, maintaining circa 2x more deposits than the second biggest curator.

The three largest vaults (all Prime) held approximately $765m in deposits on 1 July, representing around 56% of all Steakhouse Morpho TVL. Newer vaults continued growing alongside them and expanded the range of lending strategies available to depositors.

Furthermore, adoption of Morpho Vaults V2 continued to accelerate during the first half of 2026. Steakhouse became the first curator to surpass $1 billion in V2 deposits, representing nearly one quarter of all assets deployed across the new vault standard.

Steakhouse also strengthened its position across Morpho’s stablecoin market, excluding incentive-driven stablecoin farms. Its share of stablecoin deposits increased from 49% in January to 52% by the end of June, meaning more than half of all stablecoin capital on Morpho is now curated by Steakhouse.

Overall, the first half of 2026 brought several new distribution integrations across retail and institutional platforms, extending access to Steakhouse lending strategies. We head into the second half of the year with strong momentum, grateful for the trust placed in our vaults and looking forward to making even more Steak!

The Steakhouse USDG High Yield Vault on Kamino now earns more than 10% APY, following the launch of the new incentives campaign, combining USDG rewards with an underlying lending APY of 7% based on the 90-day average.

Kamino and the Global Dollar Network launched this $300,000 incentive campaign for the vault, distributing USDG (the stablecoin issued by Paxos) rewards to depositors over the next three months.

The Steakhouse USDG High Yield Vault has grown by more than $12m since the incentive campaign launched yesterday evening, with deposits now exceeding $16m and utilisation at 85%. More than half of the portfolio is currently allocated in the Main Market on Kamino, with the remainder primarily deployed to the OnRe Market alongside smaller positions in Maple, JLP and Bitcoin markets.
The vault has generated more than $268,000 of cumulative interest while charging no management fee and a 5% performance fee.

Morpho has overtaken Aave to become the largest DeFi lending venue by USDC deposits. USDC supplied through Morpho has now surpassed $2.8bn, making it the largest onchain venue for USDC lending.

More than 50% of those deposits are allocated to Steakhouse vaults. Steakhouse now manages circa $1.4bn of all USDC on Morpho.
Looking across chains, Steakhouse is also the largest curator of USDC on Base, with approximately 65% of all USDC deposited through the platform allocated to Steakhouse vaults, equivalent to around $1bn in deposits. Around $368m of those deposits come from the Coinbase App’s USDC lending product.

Coinbase App users can choose between the two Steakhouse USDC lending strategies on Morpho: Prime, focused on blue-chip collateral, and High Yield Edition, which targets higher returns through a broader collateral set. Recently, Coinbase has also increased the advertised High Yield APY to ~7%.