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# System prepended metadata

title: Welcome to the Steakhouse USDC MetaMorpho Flagship Vault

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# Steakhouse Financial Ltd to launch **a USDC MetaMorpho Flagship Vault**

![image](https://hackmd.io/_uploads/rJzpsvcXa.png)


## 1. TLDR

- Steakhouse will be launching a USDC MetaMorpho vault that will initially lend against tokenized T-bills ([Backed Finance’s bIB01](https://www.backedassets.fi/products/bib01)) on Morpho Blue markets!
- Backed’s BIB01 is a [ERC-20 token](https://etherscan.io/token/0xCA30c93B02514f86d5C86a6e375E3A330B435Fb5) that tracks the price of the iShares $ Treasury Bond 0-1yr UCITS ETF.
- MetaMorpho enables the creation of noncustodial vaults that provide passive users with curated risk, better yields, and a transparent lending experience.
- Steakhouse is leveraging this open infrastructure to offer users a new way to earn interest on USDC.

## 2. Introducing RWA-backed Steakhouse USDC MetaMorpho vault

[Steakhouse Financial](https://www.steakhouse.financial/) is a crypto-native advisory group dedicated to advancing and scaling blockchain-based financial infrastructure. Our team of collaborators brings a wealth of experience in advisory, analytics, and legal research. Our chefs are contributing members at some of the largest DAOs, including Maker DAO and Lido DAO, and have amassed domain expertise in stablecoins and RWAs.

We’ve partnered up with the Morpho team to launch the flagship **USDC MetaMorpho vault, which will enable over-collateralized lending backed by RWAs.** The noncustodial vault makes lending simple and efficient for passive lenders. By supplying their idle USDC liquidity into the vault, lenders can earn yield and delegate risk management to the vault curators like ourselves, who abstract the complexities by selecting appropriate risk parameters on behalf of users. 

![image](https://hackmd.io/_uploads/Hk0Rjv9Xp.png)


Source: [Morpho.mirror.xyz](https://morpho.mirror.xyz/vPkSBEZvIoVDfx-GBOsTOvjI14bqul-PA-LMe3sBlBw)

Steakhouse’s USDC vault will initially lend against tokenized T-bills (Backed Finance's bIB01). bIB01 is an ERC-20 token backed by IB01 ([Blackrock’s iShares 0-1 yr US Treasury ETF](https://www.ishares.com/uk/individual/en/products/307243/ishares-treasury-bond-0-1yr-ucits-etf)). We believe bIB01 makes an ideal collateral asset, thanks to the price stability of the underlying treasuries. At the time of the writing, IB01 had a 3-year standard deviation of 0.63% and a yield to maturity of 5.2%. Volatile and non-yielding assets like BTC and ETH are often subject to low Loan-To-Value (LTV) ratios in lending markets to the detriment of capital efficiency. bIB01’s stability is a desirable attribute for enhancing capital efficiency.

With [circulating supply of ~$47m](https://app.rwa.xyz/treasuries), bIB01 is currently available for issuance and redemption for non-US professional investors only. The registration process requires KYC - details can be found [here](https://www.backedassets.fi/create-an-account) on Backed Finance’s website. As such, the borrowers on the USDC (bIB01) market on Morpho Blue will initially be restricted to authorized users. The USDC MetaMorpho vault is permissionless and open to anyone who supplies USDC.

![image](https://hackmd.io/_uploads/SkDehwc7T.png)


Source: [Tradingview](https://www.tradingview.com/symbols/LSE-IB01/)

## 3. Why MetaMorpho

MetaMorpho vaults offer users the **same passive experience** as traditional lending pools with some **notable improvements.** 

- **Transparent:** MetaMorpho vaults are noncustodial with immutable logic and verifiable onchain allocations.
- **Tailored Risk:** Vaults are curated by independent curators and bypass the [shortcomings](https://x.com/PaulFrambot/status/1691796379138449458?s=20) of the DAO-governed risk management model. Each vault caters to a different risk profile, offering users a choice, contra the one-size-fits-all approach of the traditional lending protocols. Users can be selective with their risk appetite. In traditional lending, pools are exposed to the riskiest asset in the pool. With MetaMorpho a lender can avoid exposure to long-tail assets by depositing in a vault that only lends against blue-chip collateral.
- **Efficient interest rates:** Dynamic rebalancing across multiple markets with the best risk-return ratio optimizes the interest earned by suppliers.
- **Low gas cost:** Because the protocol is built in a singleton smart contract, gas costs are an order of magnitude below existing lending platforms.

You can learn more about MetaMorpho [here](https://morpho.mirror.xyz/vPkSBEZvIoVDfx-GBOsTOvjI14bqul-PA-LMe3sBlBw). 

## 4. Roadmap: assets addition and future vaults

- Going forward, Steakhouse’s focus will be on curating vaults that enable stablecoin lending backed by RWAs, bridging real-world yields with DeFi.
- To grasp the potential size of the RWA-backed stablecoin lending market, we look to the traditional US [repo market](https://en.wikipedia.org/wiki/Repurchase_agreement), which currently exceeds [$4 trillion](https://www.sifma.org/resources/research/us-repo-statistics/) in size. Repos serve as an important source of short-term funding for financial institutions who pledge US Treasuries as collateral for cost-effective borrowing. This anchors our excitement about RWA-backed stablecoin lending markets facilitated by Morpho.
- Our roadmap includes adding new collateral assets and vaults.
    - Future collateral assets could include [other tokenized T-bills](https://www.steakhouse.financial/projects/tokenized-tbills-2023), longer-term treasuries (e.g. [bIBTA](https://www.backedassets.fi/products/bibta)), corporate bonds (e.g. [bERNA](https://www.backedassets.fi/products/berna)) or other tokenized yield-bearing institutional securities.
    - Future vaults could include other stablecoins, including non-US denominated stablecoins and KYC-ed stablecoins. Select cryptocurrencies may be added for rate stability, though it is not the main goal of the vault.

## 5. Disclaimers

PLEASE REFER TO OUR FULL DISCLAIMERS [HERE](https://www.steakhouse.financial/disclaimers)