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Vaults

A Morpho vault pools USDC and lends it on Morpho. When you deposit through Earn, your USDC ends up in a vault and you hold shares representing your slice. As borrowers pay interest, the share price rises.

TL;DR​

  • USDC-only Morpho vaults, curated into Earn's approved set.
  • You hold the shares; the share price rises as borrowers pay interest.
  • Only part of a vault's TVL is withdrawable at any moment. Earn tracks this liquidity and uses it in every routing decision.
  • Token rewards (MORPHO and partner tokens) are NOT in the APY Earn displays. Claim them on Morpho directly.

Eligibility​

A vault must clear three bars to enter Earn's approved set:

  • Deposit asset is USDC.
  • Enough TVL to make a deposit/withdraw cycle cost-effective (current floor: $5,000; strategies usually filter much higher with Min vault size).
  • Reviewed and added to the approved set, which lives on-chain.

If a vault you see on Morpho isn't selectable inside Earn, it isn't on the approved set yet, or your strategy filters it out: below your Min vault size or Min withdrawable liquidity, hidden, at its deposit cap, or no APY data yet.

Withdrawable liquidity​

Vaults lend most deposits out to borrowers, so only part of the TVL can be withdrawn at any moment. Earn tracks each vault's withdrawable liquidity and shows it next to TVL, with a colored Liquid % tag (liquidity as a share of TVL): red below 3%, orange below 10%, green at 10% or above.

Liquidity shapes routing: strategies set a Min withdrawable liquidity floor, Auto-Pilot only enters vaults holding a comfortable multiple of that floor, and it exits a held vault whose liquidity falls below it. See Rebalancing.

The Vaults page lists approved vaults with APY, TVL, liquidity, and approval status; each vault has a detail page charting its APY and withdrawable liquidity over the last 24 hours.

Share price​

Share price = USDC the vault holds (out on loan plus reserves) ÷ shares issued. As borrowers pay interest, vault holdings grow but the share count doesn't, so each share is worth more over time.

The share price moves up in normal operation. It can drop only on a Morpho-market loss event, the smart-contract and curation risk you accept by holding shares.

Rewards​

Rewards are not part of the APY Earn displays

Morpho streams MORPHO and partner tokens to depositors. These don't flow through the share price, so they don't show up in Earn's APY.

Vault shares are minted directly to your wallet, so any rewards accrue against your wallet. Claim them on Morpho's reward UI with the same wallet.

Earn ranks vaults by share-price APY alone so it compares apples to apples. See Rebalancing.

Where to go next​