Api3 is curating Kabu, a Morpho vault on mainnet focused on defi blue-chip protocols, allowing token holders to borrow USDC against their assets.
Assets like BAL have real borrowing demand and strong liquidity characteristics, yet few lending platforms support them. Not because demand is missing, but because managing liquidation risk and execution during volatile conditions is complex.
Traditional protocols like AAVE and Compound often avoid these markets entirely due to the technical challenges involved.
The Solution
Kabu USDC addresses this by combining two key technologies:
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Api3’s OEV Infrastructure: Reduces the risk of bad debt significantly by triggering oracle updates exactly when needed, instead of relying on vague update parameters not tied to risk at all. This keeps prices accurate during sharp or fast-moving market events.
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Morpho’s Partial Liquidation Design: Allows downside and execution risk to be handled more gracefully than all-or-nothing liquidation mechanisms used elsewhere.
I just wanted to share that BAL has been added as a collateral asset now. The vault currently supports BAL, COMP, MORPHO, EIGEN and FLUID, and can be accessed here - https://app.morpho.org/ethereum/vault/0x54210d3f1A066413891AF9E17210E787d5C6e3f4/kabu-usdc
Happy to answer any community questions!