MEV Capital’s Competitive Edge & Validation and case studies of the proposal

MEV Capital’s Risk-Management Capabilities and Competitive Edge

MEV Capital is an on-chain liquidity provider and risk-management firm with a $750 million AUM mandate focused on stable, market-neutral yield since 2020. The team curates 12 public MetaMorpho vaults across four L1 networks while also operating a CSSF-regulated Luxembourg fund and SMA program.


Proven Track Record

  • MetaMorpho Curator: $268 M curator-level TVL on Morpho (≈ 6 % of protocol TVL) with zero bad-debt events to date.(Morpho | MEV Capital Elixir USDC vault)
  • Long-Run Out-performance: 25.3 % USD absolute return over the trailing 12 months across all strategies. Mev Capital
  • Cross-Protocol Breadth: Active vaults for Elixir (deUSD), Usual (USD0), wETH-based carry, Symbiotic restaking and RWA-hedged LPs.
  • Security Record: No smart-contract exploits since inception; all vaults run on audited Morpho Blue markets with real-time on-chain monitoring.

MEV Capital Performance Highlights

Protocol / Strategy Vault Type (Ticker) 30-Day Avg APY TVL Notes
Morpho → Elixir Elixir USDC (MC.ELIXIRUSDC) 7.76 % 0.46 M USDC Supplies against blue-chip collateral, earns MORPHO incentives Morpho
Morpho → Usual Usual USDC (MC.USUALUSDC) 6.16 % 2.55 M USDC Diversified collateral set incl. ETH-LSTs Morpho
Morpho → Prime USDC MEV Capital USDC Core 5.77 % 201.9 M USDC Flagship stablecoin carry vault EarnBase
Morpho → ETH Carry MEV Capital wETH ≈ 5.8 % 40.8 M USD-eq. Lends wETH vs. LST/LRT collateral Exponential DeFi

APYs are 30-day rolling averages, snapshot : 2 May 2025.


Compared to Competitors

Category MEV Capital Gauntlet Risk DAO Steakhouse Fin.
Morpho AUM / Curator TVL $268 M Morpho $700 M+ ~$200 M Morpho ~$124 M (USDC vault) EarnBase
Vault-TVL Share ~6 % 40 %+ 4–5 % ~3 %
30-Day APY Range (’25 YTD) 5.7 – 7.8 % 5 – 6 % 6 – 8 % 4.8 – 6.5 % EarnBase
Insolvency Events 0 0 0 0

Key Differentiators

  • Hybrid Structure: Combines fully on-chain, permissionless vaults with a CSSF-regulated Luxembourg AIF and bespoke SMA mandates—uniquely suiting both DAO treasuries and institutions. Mev Capital
  • Strategy Breadth: Offers stablecoin carry, ETH/BTC carry, LRT restaking, RWA hedged LP and opportunistic arb—providing multiple un-correlated income streams.
  • Transparent Fee Model: 10 % performance fee, no management fee on public vaults; addresses incentive alignment for DAO treasury depositors. Morpho
  • Operational Resilience: Fireblocks-style MPC custody, role-based multi-sig approvals and external audits; no key-management failures recorded.

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Case studies

Why borrowing sUSDS is structurally harder than borrowing USDC
sUSDS is yield-bearing = borrower’s debt grows automatically

Similar case : Aave chose to list sDAI as “collateral-only” because “yield-bearing tokens generate limited borrow demand.” Aave

Protocol Problem Mitigation
Aave v3 (stETH, sDAI) Low borrow demand on yield-bearing assets • Borrow caps
• Lower optimal utilization
• Make asset collateral-only (sDAI)
MakerDAO (sDAI) No appetite to borrow a rebasing coin Disabled borrowing entirely; sDAI is collateral-only.
Ethena (sUSDe) Rebase debt risk Keeps yield-bearing sUSDe for savings; lends non-rebasing USDe instead.
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