Pendle’s new USDC vault on the Morpho lending protocol has gathered $50 million from 230 depositors in roughly a week and a half after launching on August 4. Co-curated with Armitage, Wintermute’s vault curation arm, it became the largest vault Armitage has managed. The vault channels stablecoin deposits into Principal Token collateral markets on Morpho, addressing a shortage of lender liquidity that had limited borrowing capacity and caused volatile rates. Deposits rose from about $15 million shortly after launch to $25 million within two days, exceeded $35 million by August 21 and reached $50 million at roughly the 1.5-week mark. The average deposit is above $217,000. Approximately 99.7% of the capital flows into PT-reUSD/USDC. The vault distributes 7,500 PENDLE tokens weekly alongside base lending yield; its early net APY was 14.08%, consisting of 4.75% base yield and 9.32% token rewards, while more recent returns have settled at roughly 7.15% to 7.88% as deposits expanded and weekly token distributions remained constant. The result highlights Pendle’s role in trading future yield and supports Morpho’s modular lending model, while Armitage’s involvement signals commercial interest in PT-backed lending markets.