Keyrock opens its idle treasury playbook with Morpho Vaults
"When it comes to curating vaults, a curator’s primary responsibility is to understand the underlying asset itself. By modelling these assets with our proprietary systems, Keyrock ensures its vaults meet the highest standards of risk management."Daniel Fallis, Head of DeFi Credit at Keyrock
The Opportunity
Keyrock is a leading digital asset market maker and trading firm. Its trading desk runs 24/7 across dozens of venues. Inventory buffers, margin pre-positioning, and settlement cycles constantly create idle liquidity in digital assets like USDC.
Every minute that capital sits idle is a missed opportunity to capture yield.
The team needed a treasury solution that’s secure and efficient that puts idle inventory to work with instant redemption. Beyond deploying their internal balance sheet, Keyrock also wants to explore the opportunity to open up their strategy, making it transparent to market participants globally.
The Solution
Rather than investing idle liquidity into funds managed by others, Keyrock decides to curate its own vaults on Morpho. It deployed the Keyrock USDC Vault to open-source its playbook, and the Keyrock USDC Vault V2 to achieve flexibility for allocating across any current or future Morpho protocols, variable or fixed rates.
As curator, Keyrock allocates USDC across Morpho Markets, starting with conservative caps that expand only after performance and risk parameters prove favorable. Allocation changes are onchain, while guardians can pause or veto.
In its Morpho governance forum post, Keyrock highlights its experience operating on both sides of the market, supplying liquidity and borrowing to finance trading inventory. This dual perspective informs its vault allocations, while internal risk systems and trading tools guide cap sizes and rebalancing decisions.
The Results
Keyrock makes idle USDC productive while maintaining transparent, auditable operations.
This is only the beginning. As Morpho Markets V2 and future protocols roll out, Keyrock will diversify its curation strategies—informed by years of trading fixed-rate and fixed-duration products.
Keyrock is also setting the blueprint for other market makers, trading firms, and asset managers to adopt Morpho Vaults and put their idle liquidity to work.