Bitwise launched PAPY, a premium RWA vault on Morpho that generates yield by lending AUSD against tokenized real-world assets.
DeFi & Yields ·
Bitwise has launched PAPY, a premium real-world asset vault operating on Morpho. The vault is designed to generate yield by accepting deposits of AUSD, which are then lent against overcollateralized tokenized real-world assets. This structure allows depositors to earn returns while their capital supports lending secured by RWA collateral.
The mechanics follow a yield-generation model common in decentralized lending: user deposits function as liquidity for loans backed by tokenized real-world assets that exceed the loan value. PAPY positions itself as a premium offering within Morpho's ecosystem, targeting participants seeking exposure to RWA-backed yield strategies.
Details remain limited on the vault's specific risk parameters, asset types accepted as collateral, expected yield ranges, and any launch timelines or deposit caps. The relationship between Bitwise and Morpho's governance, as well as competitive positioning relative to other RWA vaults on the platform, has not been outlined.