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

**URL:** <https://forum.elixir.xyz/t/mev-capital-s-competitive-edge-validation-and-case-studies-of-the-proposal/101>\
**Category:** Ideas Lab\
**Created:** [May 2, 2025, 12:16pm UTC](https://forum.elixir.xyz/t/mev-capital-s-competitive-edge-validation-and-case-studies-of-the-proposal/101 "2025-05-02T12:16:13Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![GOMPANG](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.elixir.xyz/gompang/32/19_2.png) [@GOMPANG](https://forum.elixir.xyz/u/GOMPANG)\
**Post date:** [May 2, 2025, 12:16pm UTC](https://forum.elixir.xyz/t/mev-capital-s-competitive-edge-validation-and-case-studies-of-the-proposal/101/1 "2025-05-02T12:16:13Z")

</div>

## 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.

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### Proven Track Record

- **MetaMorpho Curator:** $268 M curator-level TVL on Morpho (≈ 6 % of protocol TVL) with zero bad-debt events to date.([https://app.morpho.org/ethereum/vault/0x1265a81d42d513Df40d0031f8f2e1346954d665a/mev-capital-elixir-usdc?utm\_source=chatgpt.com](https://app.morpho.org/ethereum/vault/0x1265a81d42d513Df40d0031f8f2e1346954d665a/mev-capital-elixir-usdc?utm_source=chatgpt.com))
- **Long-Run Out-performance:** 25.3 % USD absolute return over the trailing 12 months across all strategies. [Mev Capital](https://mevcapital.com/)
- **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.

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### 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](https://app.morpho.org/ethereum/vault/0x1265a81d42d513Df40d0031f8f2e1346954d665a/mev-capital-elixir-usdc) |
| Morpho → Usual | Usual USDC (MC.USUALUSDC) | **6.16 %** | 2.55 M USDC | Diversified collateral set incl. ETH-LSTs [Morpho](https://app.morpho.org/ethereum/vault/0xd63070114470f685b75B74D60EEc7c1113d33a3D/mev-capital-usual-usdc) |
| Morpho → Prime USDC | MEV Capital USDC Core | **5.77 %** | 201.9 M USDC | Flagship stablecoin carry vault [EarnBase](https://earnbase.finance/) |
| Morpho → ETH Carry | MEV Capital wETH | **≈ 5.8 %** | 40.8 M USD-eq. | Lends wETH vs. LST/LRT collateral [Exponential DeFi](https://exponential.fi/pools/2145b60b-4386-4bfa-87de-7291428b8d38) |

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

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### Compared to Competitors

| Category | **MEV Capital** | Gauntlet | Risk DAO | Steakhouse Fin. |
| --- | --- | --- | --- | --- |
| Morpho AUM / Curator TVL | **$268 M** [Morpho](https://app.morpho.org/ethereum/vault/0x1265a81d42d513Df40d0031f8f2e1346954d665a/mev-capital-elixir-usdc) | $700 M+ | ~$200 M [Morpho](https://app.morpho.org/ethereum/vault/0x0F359FD18BDa75e9c49bC027E7da59a4b01BF32a/relend-usdc) | ~$124 M (USDC vault) [EarnBase](https://earnbase.finance/) |
| 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](https://earnbase.finance/) |
| Insolvency Events | 0 | 0 | 0 | 0 |

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### 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](https://mevcapital.com/)
- **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](https://app.morpho.org/ethereum/vault/0xd63070114470f685b75B74D60EEc7c1113d33a3D/mev-capital-usual-usdc?utm_source=chatgpt.com)
- **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](https://governance.aave.com/t/arfc-sdai-aave-v3-onboarding/14410?utm_source=chatgpt.com)

| 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. |