The new vault, co-curated with Wintermute's Armitage, offers an 8.31% net APY by lending USDC against Pendle principal token collateral

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.

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.

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.

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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.

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.

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.