Pendle’s newest stablecoin product needed about a day to cross the $15 million mark. The Pendle Ecosystem High Yield USDC vault on Morpho launched on October 14, 2026, and held approximately $15.76 million in deposits by October 15.
The vault advertises a net APY of 8.31% on USDC, a dollar-pegged stablecoin.
What the vault actually does
Depositors hand over USDC. The vault then lends it to borrowers on Morpho who post Pendle Principal Tokens, known as PTs, as collateral.
The vault runs on Ethereum. Its purpose is to supply liquidity across Pendle’s ecosystem while giving depositors a return. That return comes from two sources: interest paid by borrowers and incentives paid in PENDLE tokens.
The 8.31% net APY includes 1.76% in PENDLE rewards. It is calculated after a 10% performance fee on earnings.
How it differs from the original
This is not Pendle’s first USDC vault on Morpho. The existing Pendle Ecosystem USDC vault grew to more than $60 million in deposits by mid-September 2026.
Instead of mirroring the original, the new vault allocates to a wider set of higher-yield PT collateral markets on Morpho. Named examples include PT-reUSD, PT-USD3, and PT-USDat.
Roughly 98.6% of the vault’s TVL sits in the PT-reUSD market, with about $15.54 million lent there.
Roughly 94% of deposited funds are currently withdrawable.
Who is running the show
The vault is co-curated by Pendle and Armitage, the vault curation arm of trading firm Wintermute. On Morpho, curators decide which markets a vault lends into and how much risk it takes on.
The vault includes a 7-day timelock on new user adapters. If curators want to change certain settings, the change cannot happen instantly. Depositors get a week to see it coming and decide whether to stay.
What this means for depositors and DeFi
The 8.31% figure blends lending interest with PENDLE incentives, and part of the return depends on a token whose price can move.
With roughly 98.6% of TVL in one market, the vault’s performance and risk are closely tied to the PT-reUSD collateral type. If the curators begin allocating more to PT-USD3, PT-USDat, or other markets, the risk profile would shift accordingly.
Disclosure: This article was edited by Kaye Quema. For more information on how we create and review content, see our Editorial Policy.