Morpho's vault hits $110M in PYUSD deposits, offering stable yields from real-world credit markets.

Morpho's Sentora PRIME Main vault has gathered about $110 million in deposits, mainly in PayPal's PYUSD stablecoin, since launching in May 2026. This vault channels funds into real-world credit markets, providing yields between 3.5% and 6% that are not tied to crypto price fluctuations. Morpho, which recently raised $175 million valuing it over $2 billion, allows curators to create tailored lending strategies, expanding beyond traditional crypto lending. Upcoming vaults, like Steakhouse Financial's USDC Prime with added privacy features, indicate growing innovation in DeFi lending. Investors should note the risks in structured credit and smart contracts, as Morpho's permissionless model places due diligence responsibility on depositors.