Bitwise Asset Management’s Premium RWA Vault, ticker PAPY, launched on September 2 through the Morpho lending protocol on Ethereum and attracted more than $8 million in deposits within its first day. Deposits reached $8.022 million in AUSD by September 3, when the vault reported an instantaneous net APY of 5.22%, within its 5% to 6% variable target. PAPY is a non-custodial ERC-4626 vault that accepts Agora’s AUSD stablecoin and lends against approved, overcollateralized tokenized real-world collateral including Huma Finance’s PST, Hastra’s PRIME and sUSDai. The allocation was 46.59% PST, 29.23% PRIME and 24.18% sUSDai. The vault has approximately $1 billion of capacity, charges a 0.39% management fee and no performance fee, and has no lock-up period. Bitwise sets collateral, loan-to-value and interest-rate parameters but says it does not custody deposits or make discretionary decisions over individual user assets. Actual returns can be higher, lower or zero and remain subject to borrower demand, utilization, smart-contract, liquidation, stablecoin, issuer-default and regulatory risks, including possible total loss.