Pendle’s USDC vault on Morpho pulls in $50M in under two weeks

Pendle’s new USDC vault on the Morpho lending protocol has vacuumed up 50 million USDC from 230 depositors in roughly a week and a half. For a vault that launched on August 4, that’s the kind of traction most DeFi products spend months hoping for. The vault, co-curated with Armitage (Wintermute’s vault curation arm), quickly became the largest vault Armitage has ever managed. It funnels stablecoin deposits into Principal Token collateral markets on Morpho, solving a problem that’s quietly plagued Pendle’s ecosystem: there simply wasn’t enough liquidity on the borrowing side of PT-backed markets. From zero to $50M in ten days The growth trajectory tells the story. Shortly after launch, deposits sat around $15 million. Within two days, that figure hit $25 million. By August 21, it crossed $35 million. Now, at roughly the 1.5-week mark, the vault holds $50 million from 230 individual depositors. That’s an average deposit north of $217K, suggesting this isn’t retail tourists chasing yield. It’s larger allocators who’ve done the math. Nearly all of the capital, approximately 99.7%, flows into a single market: PT-reUSD/USDC. The yield equation Depositors aren’t parking stablecoins out of...