Bitwise debuts onchain vault via Morpho, targeting up to 6% yield on USDC

Bitwise Asset Management has entered the DeFi market by launching its first onchain vault strategy through the decentralized lending protocol Morpho. This initial vault is designed to target up to 6% yield on the USDC stablecoin by deploying capital into over-collateralized lending markets on Morpho. Jonathan Man, Bitwise's head of multi-strategy solutions, stated that future strategies may include other stablecoins, real-world asset tokenization, and yield farming.

Bitwise positions these curated onchain vaults as "ETFs 2.0," aiming to simplify DeFi yield exposure for investors by layering institutional-grade risk management and regulated oversight onto non-custodial tools. While users retain non-custodial control of their funds, Bitwise oversees strategy design and real-time risk management. Morpho co-founder Paul Frambot clarified that Bitwise is acting as a curator, designing and managing the onchain strategies, which will then be distributed via fintechs and exchanges.

This move comes as other major platforms, like Kraken, also focus on yield products. However, the article cautions that DeFi lending carries inherent risks, such as smart contract vulnerabilities, and unlike traditional products, onchain vaults are not insured.

(Source：The Block)