Welcome to another DeFi Markets Update—your no-nonsense briefing on the cryptobanking plumbing and market pulse.
Comparing EUR-Denominated Vault Yields Across Morpho
Last week, we examined the APY of selected USD-denominated vaults and found Steakhouse Prime USDC on Base to be the highest yielding one. This week, we look at Steakhouse Euro-denominated Prime vault yields over the last 180 days.
Generally speaking, EURCV on Mainnet has been the most stable of the three, with steadier supply from B2B integrations helping keep rates mostly in the 3–4% range, while EURC has been more volatile. Both EURC Base and Mainnet spent much of the first half of the period around or below 1.5%, while EURC on Base later reached the highest yield of the three at 6% on July 14th.
During May, EURC yields fell for slightly different reasons on each chain. On Mainnet, borrowing in the WBTC/EURC market, the main EURC market on Mainnet, dropped by more than half and stayed at around €2.4m through the month. Later, on Base, €3m of new EURC was supplied into the cbBTC/EURC market while borrowing stayed relatively unchanged. In both cases, this caused lower utilisation, which led to lower yields for suppliers.
This turned around from mid-June into July as available EURC liquidity tightened. On Base in particular, large withdrawals reduced supply faster than borrowing came down, pushing utilisation above Morpho’s 90% target and driving lending rates much higher. Same thing happened on Ethereum shortly afterwards with the spike on 25th of July.
Right now, all three vaults have fairly similar yields for the first time in the past six months, with EURCV being the largest of the three, with over €120m of supply available at more predictable rates across major collateral markets.
Morpho becomes the First and Main Venue for Tokenized Stock lending on Base
Morpho has launched new USDC lending markets on Base backed by Coinbase tokenized stocks, including AAPLc, GOOGLc, METAc, NVDAc and SPCXc.
After reviewing the new markets, they have been added to our High Yield USDC vault, giving depositors exposure to these new lending markets and the higher rates available there.
Steakhouse High Yield USDC V2 rate has been stable at 5% for the past month, after a few months of ranging between 4.5% and 6.9%. The vault now has around $30m in TVL, with about $6.3k allocated to the new markets so far.
The tokenized stock markets in our HY vault are already picking up quite quickly since launching last week, with around $70k supplied and $63k borrowed across the five so far.
Steakhouse Goes Live on Arc with Prime USDC and EURC
We deployed two new vaults Steakhouse Prime USDC and Steakhouse Prime EURC on Arc, a new chain by Circle. The two vaults currently allocate into cirBTC-backed USDC and EURC markets on Morpho.
The cirBTC/USDC market has been growing quickly since Arc launched last week on September 16, and already passeed $18m in borrows with more than $100m supplied.
Arc is a new Layer 1 built by Circle for financial activity such as stablecoin payments, lending, FX and tokenised assets, with USDC as the network’s native gas asset.