Key Takeaways
BlockchainReporter covers the launch of Bitwise's PAPY real-world asset lending vault on Morpho, targeting a variable 5%–6% yield using Agora's AUSD.
According to BlockchainReporter, Bitwise Asset Management launched the PAPY real-world asset lending vault on Morpho on September 2. Users deposit Agora’s AUSD stablecoin, while the vault lends against approved tokenized collateral. Bitwise targets a variable annual percentage yield of 5%–6%, though this estimate can change based on borrower demand and protocol utilization.
Borrowers must post assets from a predetermined list including PST, sUSDai, and PRIME. Loans are overcollateralized with algorithmically determined interest rates. Bitwise sets parameters such as eligible collateral and loan-to-value ratios, but does not take custody of deposits. Deposits remain in user-controlled wallets and Morpho smart contracts.
At launch, PAPY exclusively accepts AUSD, which is backed by U.S. Treasury bills, overnight and reverse-repurchase agreements, and other liquid assets, with reserves managed by VanEck and custody provided by State Street.
Bitwise warns that the 5%–6% target is not guaranteed, noting risks including smart-contract failures, oracle problems, collateral liquidation shortfalls, stablecoin depegging, RWA issuer defaults, and regulatory changes, which could result in a total loss.
Source & Fact-Check Note
This report is synthesized from coverage by BlockchainReporter. Information has been fact-checked and structured for market clarity by CoinQuickly’s research desk.
Read original article at BlockchainReporter ↗
