Analyst Insight

By assessing the on-chain metrics for hyperUSDCm on Morpho, our risk model classifies this as a conservative capital preservation play. While yields are moderate, the high safety score (85/100) prioritises principal protection.

The current APY of 9.36% is supported by a Total Value Locked (TVL) of $12,167,016. This pool is currently trading 0.0% below the category average. This yield compression often occurs in highly saturated, safer pools where capital seeks safety over returns.

Risk Context: With a Safety Score of 85/100, this liquidity pool is positioned for long-term holders seeking compound growth.

Yield Mechanics: How It Works

Understanding the underlying protocol logic is essential for assessing sustainability. The 9.36% APY displayed for hyperUSDCm is primarily derived from interest paid by borrowers on the Morpho protocol.

Supply & Demand

When you deposit hyperUSDCm, you become a liquidity provider. Borrowers pledge collateral (like ETH or BTC) to take out loans. The interest rate fluctuates based on the Utilisation Rate (currently 97.06%). Since utilisation is high, interest rates have increased to encourage repayments and attract new deposits.

Risk Strategy & Management

While Morpho is a reputable protocol, no yield is without risk. Based on the current Safety Score of 85/100, the following approac may suit (DYOR):

• Smart Contract Risk: Ensure you are comfortable with the audit history of Morpho.
• Liquidity Risk: With a TVL of $12,167,016, slippage is minimal for standard trade sizes.
• Strategy: More suitable for a 'Set and Forget' strategy.

Frequently Asked Questions

Advanced Tools

Enhance your stablecoin yield data analysis with our suite of tools:

• Profit Calculator: Forecast compound interest earnings.
• Safety Audit: Deep dive into the risk factors.
• Liquidity Depth: Analyse market dominance and slippage.