Sturdy teams up with Morpho to offer AI-optimized yields, powered by Gauntlet and Bittensor
Sturdy’s Bittensor subnet, SN10, has allocated over $60m since its launch just a few short months ago. SN10 has demonstrated the potential for fully autonomous and permissionless yield optimization, with miners on the subnet decentralizing the role typically played by human asset managers. But to date, SN10 has been limited to optimizing aggregators within the Sturdy protocol.
Bringing SN10 to Morpho
Today, we’re announcing that SN10 is coming to Morpho. Morpho is one of the largest DeFi applications by TVL, with over $2b deposited to the protocol. Similar to Sturdy, Morpho offers a tiered architecture that includes isolated lending pools (the Morpho protocol) and permissionless lending vaults built on top (Morpho Vaults).
Morpho has seen rapid growth in both TVL and its number of vaults, with some popular assets now having 10+ Morpho Vaults. Gauntlet, for example, curates both the Gauntlet USDC Core Vault and the Gauntlet USDC Prime Vault. For users seeking the highest risk-adjusted yields within Morpho, having so many options can be confusing.
Building with Aera
Sturdy, Morpho, and Gauntlet are joining forces to solve this problem with a Morpho Vault Aggregator, powered by Sturdy’s Bittensor subnet, SN10. Aera, an onchain treasury management protocol incubated by Gauntlet, will be used as the foundation of the aggregator’s architecture. Aera vaults are non-custodial and programmable, making them a perfect fit for the aggregator’s custom logic without compromising on decentralization.
Aera uses Guardians to assess the optimal allocation of assets within the vault; this role will be played by SN10 for the Morpho Vault Aggregator. Miners on SN10 will use their custom algorithms to produce allocations for the aggregator, which will then be ranked by validators, with the best allocation being used by the aggregator to rebalance assets across whitelisted Morpho Vaults.
The First Morpho Vault Aggregator
The first aggregator will be for USDC and include four Morpho Vaults that collectively hold over $180m in TVL: Usual Boosted USDC, Steakhouse USDC, Gauntlet USDC Core, and Gauntlet USDC Prime. By depositing to the aggregator, lenders will automatically earn the highest yield across these Morpho Vaults.
The USDC Morpho Vault Aggregator represents a major milestone for DeFi by simultaneously offering a simple user experience, AI-optimized yields, and non-custodial management. Stay tuned for its launch!
