Bitwise, a crypto asset manager, has launched its first on-chain vault strategy through the Morpho decentralized lending protocol, signaling its formal entry into DeFi. The program taps Morpho’s over-collateral lending market to deploy capital into USDC-based opportunities, aiming for an annual yield of up to 6%. Bitwise will oversee strategy design and real-time risk management, with user funds stored on-chain in a non-custodial setup.
The on-chain structure is designed to give investors exposure to on-chain yields without requiring investors to actively manage complex risk. A Bitwise multi-strategy lead noted the move expands access to on-chain income across assets and reduces the need for hands-on risk monitoring. The firm plans to broaden the lineup to include other stablecoins and crypto assets, tokenized real assets, DEX liquidity mining, and yield-generation strategies.
By handling risk controls in real time and maintaining non-custodial custody, Bitwise aims to attract institutional and retail participants seeking automated on-chain income. The company emphasized that this approach aligns with DeFi’s trend toward more accessible, asset-diverse yield strategies.
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