We’re launching Kabu USDC, a new curated vault on Morpho designed to bring liquidity to high-quality assets that lack established lending venues.
The Problem
Many assets have real borrowing demand and strong liquidity characteristics, yet few lending platforms support them. Not because demand is missing, but because managing liquidation risk and execution during volatile conditions is complex.
Traditional protocols like AAVE and Compound often avoid these markets entirely due to the technical challenges involved.
The Solution
Kabu USDC addresses this by combining two key technologies:
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Api3’s OEV Infrastructure: Reduces the risk of bad debt significantly by triggering oracle updates exactly when needed, instead of relying on vague update parameters not tied to risk at all. This keeps prices accurate during sharp or fast-moving market events.
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Morpho’s Partial Liquidation Design: Allows downside and execution risk to be handled more gracefully than all-or-nothing liquidation mechanisms used elsewhere.
Together, these technologies enable precise risk management that makes challenging assets safe to support.
Launch Markets
Kabu USDC is launching with two initial markets:
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COMP/USDC: Deep liquidity for COMP holders
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MORPHO/USDC: The first MORPHO lending market on Ethereum mainnet
Expanding the Morpho Ecosystem
Rather than competing with other curators on existing tokens, Kabu USDC expands the set of assets available as collateral on Morpho, unlocking new markets and opportunities.
We’re actively looking to support additional high-quality tokens. If you’re interested in having your token listed on Kabu USDC, feel free to reach out.
Get Started