Failed to understand source of yield for Flagship ETH vaults

Vaults BlockAnalitica & B.Protocol
1

Hi, I am new to morpho vaults.

I am considering making a deposit into the vault but I am unable to understand the source of the yield.

The vaults has nearly 10% APY. while majority of the deposit is lent to the wstETH/WETH market where borrower only pays 1% APY.

I looked at the vault page and it says deposit makde into wstETH/WETH market is generating 9.65% APY.

I failed to understand how this is possible without leveraging and looping.

Can someone explain where does the yield come from and do we employ leverage to generate these 10% APY ?

Thanks

2

hello,
the Net APY you observe is most likely due to additional rewards distributed at market level or vault level.
best way to get a proper support and explanations is to join the Morpho discord server: https://discord.morpho.org/

There you will be able to share specifics (vault address for instance) and you will get the best support.