August USDC V2

Risk reportMonad0x8001…bb59

Risk

Depositing into August USDC V2 means underwriting risks you usually can't see: how much you could lose, whether you'd get out in time, and what would cover it.

Morpho BlueVault (aggregates across markets)

How much could be lost?

Your deposit (optional)

41%of your deposit if collateral falls 50%Only smart-contract bug reaches a total 100%, with no warning to exit.

Can I exit?

Via underlying marketsonly governance changes give a 3-day timelock to exit — every other modeled failure is no-warning

What backs it?

No committed backstopnothing committed would cover a loss

Track record

No pool-level losses recorded36 audits, latest Dec 15, 2025

Collateral and oracle exposure

Each token you're exposed to, and the market it backs. If that market breaks, this is how much the vault loses, in dollars and as a share of the vault. Open a row for the price feed, stress curve, and supply-cap detail. Below, the oracles those prices depend on and what is at stake if one is compromised.

If collateral prices dropper asset · no liquidations · stress estimate

est. bad debt up to 21% of deposit

Driven by PT-earnAUSD-8OCT2026 −30% 18% · earnAUSD −30% 2% · syzUSD −30% 1% · other <1% · −100% 91% modeled all-to-zero bad-debt ceiling

CollateralAllocationMarket ExposureOracle Exposure

PT-earnAUSD-8OCT2026Unclassified75%of vault · bad debt · $4.31mOracle exposure 7%

81%of vault · $4.71m75%of vault · $4.31m7%separate path

What it's made of

Unclassified(custom)

Oracle design not classified (long-tail market).

Markets this collateral backs · 1

→ USDC92% LLTV0x7bd5…9977

Aggregate Collateral Trust (ACT):$430,714.232 vaultsToken:0xdaf2…45cdAllocation: 81% of the vault · $4.71m

If it breaks

−30% default

At −30%:est. bad debt up to 18% of depositUses 1 market LLTV curve · capped at allocation $4.71m · drag to set this asset's drop

Oracle exposure: up to 7% of vault drainable if the feed is compromisedseparate path: an attacker borrows against a fake price

earnAUSDHybrid9%of vault · bad debt · $536,151.39Oracle exposure 1%

10%of vault · $597,138.919%of vault · $536,151.391%separate path

What it's made of

Hybrid(exchange-rate)

earnAUSD is priced from an exchange-rate/NAV leg rather than a direct market-rate feed.

BaseExchange-rate/NAV pricing legQuoteNo independent quote feed identified

Markets this collateral backs · 1

→ USDC92% LLTV0x3c45…0cee

Aggregate Collateral Trust (ACT):$4.3m2 vaultsToken:0x1032…7496Allocation: 10% of the vault · $597,138.91

If it breaks

−30% default

At −30%:est. bad debt up to 2% of depositUses 1 market LLTV curve · capped at allocation $597,138.91 · drag to set this asset's drop

Oracle exposure: up to 1% of vault drainable if the feed is compromisedseparate path: an attacker borrows against a fake price

syzUSDHybridRedStone6%of vault · bad debt · $353,294.88Oracle exposure 1%

7%of vault · $425,252.166%of vault · $353,294.881%separate path

What it's made of

Hybrid· RedStone(aggregator)

syzUSD is priced from a fundamental/NAV feed (RedStone), not a raw market-rate feed.

BaseRedStone fundamental/NAV feed pathQuoteRedStone quote feed path

Markets this collateral backs · 1

→ USDC92% LLTV0x3908…4f98RedStone

Aggregate Collateral Trust (ACT):$72,328.222 vaultsToken:0x484b…e73fAllocation: 7% of the vault · $425,252.16

If it breaks

−30% default

At −30%:est. bad debt up to 1% of depositUses 1 market LLTV curve · capped at allocation $425,252.16 · drag to set this asset's drop

Oracle exposure: up to 1% of vault drainable if the feed is compromisedseparate path: an attacker borrows against a fake price

YZMHybrid0.8%of vault · bad debt · $44,803.86Oracle exposure 0.1%

0.9%of vault · $51,033.070.8%of vault · $44,803.860.1%separate path

What it's made of

Hybrid(exchange-rate)

YZM is priced from an exchange-rate/NAV leg rather than a direct market-rate feed.

BaseExchange-rate/NAV pricing legQuoteNo independent quote feed identified

Markets this collateral backs · 2

→ USDC92% LLTV0xd062…3584
→ USDC92% LLTV0x5762…38d5

Aggregate Collateral Trust (ACT):$50,870.714 vaultsToken:0x3a2c…e2cbAllocation: 0.9% of the vault · $51,033.07

If it breaks

−30% default

At −30%:est. bad debt up to 0.2% of depositUses 2 market LLTV curves · capped at allocation $51,033.07 · drag to set this asset's drop

Oracle exposure: up to 0.1% of vault drainable if the feed is compromisedseparate path: an attacker borrows against a fake price

Oracle dependencies

1 feed · 1 control point

Up to9%of vault drainable if these feeds are mispriced · $541,001.47

Each price traces to a feed and the on-chain admin that can move it. Compromise either to misprice the collateral and borrow against it. Per-row amounts overlap and are not summed.

RedStone·a 2/3 Safe multisigprices syzUSD0x41f0…12581% of vault · $71,957.28drainable if it is compromised
Unidentified feeds· vendor and on-chain control not resolvedprices PT-earnAUSD-8OCT20267% of vault · $401,827.46mispriceable if these feeds lie
On-chain exchange rate· no external feed or adminprices earnAUSD, YZM1% of vault · $67,216.73mispriceable only via the issuing contract

Loss scenarios

Each row is a distinct failure, and every loss is a share of your deposit — the same percentage whatever you deposited. Loss is that share at a −30% collateral crash, the standard stress; Worst case is the ceiling if everything goes wrong, a conditional loss if it happens rather than a likelihood. Open a row for the loss at every crash depth, the dollar amounts, conditions, and the math.

11 scenarios · 9 with no time to exit · loss as % of deposit


Full-deposit & protocol-level(2)
	100%	Full deposit	Instant
	21%	up to 91%	Instant
Price-driven collateral stress(1)
	21%	up to 91%	Instant
Oracle & liquidation failures(5)
	21%	up to 91%	Instant
	21%	up to 91%	Instant
	2%	up to 18%	Instant
	4%	up to 15%	Instant
	—	up to 9%	Instant
Vault role & allocator(3)
	—	Full deposit	3 days
	—	Full deposit	Instant
	—	up to 50%	3 days

Trust and control

The people and processes that can change this protocol under you.

Track record · no pool-level losses recorded · 5 protocol incidents · 36 audits

Vault operators

The roles that can actually move your deposit — the real principal-loss path.

Reaches deposit, no delayReaches deposit, timelockedCan't reach deposit

Role timelock 3 days to exit before owner/curator actions land

Ownersingle key (EOA)0x2a15…cdaf

Curatorsingle key (EOA)0xa81a…ec24

Sentinels1 · 1 EOASafety role · veto only

Safety role, not an attack role: can revoke ANY pending timelocked curator change, instantly cut caps, and pull funds from adapters back to idle. Strictly risk-reducing — a captured sentinel cannot introduce new risk.

single key (EOA)0x30d5…f988

Allocators1 · 1 EOAReaches deposit · instant

Moves funds between markets the curator has ALREADY approved — instantly, with NO timelock and no exit window. Cannot reach a brand-new market, but can concentrate you into an approved-but-stressed market or order withdrawals so you hit weak liquidity first.

single key (EOA)0x3c85…ea58

Audits

361 critical, 13 high findings logged

Certora· Dec 15, 2025report
Blackthorn· Dec 4, 2025report
Spearbit· Dec 4, 2025report
Blackthorn· Sep 15, 2025report

+32 more audits

Governance & control

Protocol-wide governance: bounded context, not the path to your deposit.

Governance owner5-of-912 chains0xe27f…e558

Rewards owner3-of-70xf057…b2e9

Rewards updater3-of-50x5eb9…3297

Snapshot proposer5-of-80x6abf…f6a2

Governance contract0xcBa2…9AFa

Top-10 voter concentration100.0%

Quorum to pass500,000 MORPHO· top 10 hold 2.56m

Voting token

MORPHO0x58D9…c2B2

Dependencies that can affect your deposit

7 things this pool relies on but doesn't control. Select one for its story.

Morpho Blue

oracles

Market Specific oracle

Every Morpho Blue market chooses an immutable oracle contract at creation; implementations can be Chainlink-like, exchange-rate, fixed-price, or custom. Failure modes: attacker-favourable price feed (covered in market-oracle-compromise) or price() revert / staleness blocking liquidations (covered in oracle-liveness-or-malfunction).

No quantified loss scenario references this dependency directly.

Updated Sep 4, 2026Sources:on-chain reads via @defillama/sdkhttps://hub.snapshot.org/graphqlhttps://api.morpho.org/graphql