Stablecoins Can Actively Earn – SafePal Partners with Morpho Vaults

SafePal, a non-custodial crypto wallet, has partnered with Morpho, a decentralized lending network, to provide enhanced access to stablecoin yield with improved security for self-custody users. This collaboration includes the integration of Morpho Vaults into the SafePal app and a new Walletdrop campaign designed to encourage increased hardware wallet usage among users.

Key Takeaways

Partnership Overview: SafePal integrates Morpho Vaults for better stablecoin yield access.
Supported Stablecoins: Users can earn yield on USDC and USDT.
Campaign Launch: The Walletdrop campaign rewards users with co-branded hardware wallets.
Security Enhancements: Includes a transition to EAL6+ security chipsets for improved user protection.
Market Awareness: SafePal addresses risks associated with opaque yield structures in the crypto market.

Morpho, SafePal

SafePal and Morpho Collaboration

SafePal, a leading non-custodial crypto wallet, has collaborated with the decentralized lending network Morpho to enhance the ability of users to earn from stablecoins while maintaining secure self-custody. This partnership is aimed at providing improved access to risk-adjusted stablecoin yields.

The integration consists of two main components. The first involves incorporating Morpho Vaults directly into the latest version of the SafePal app (V4.10.6). This upgrade will facilitate seamless yield generation on certain stablecoins via the SafePal Earn yield aggregator, specifically for USDC and USDT on the Ethereum, Base, and Arbitrum networks.

In addition, the decentralized finance (DeFi) firms Steakhouse and Gauntlet are involved in managing these integrated Morpho Vaults. This collaboration allows depositors to earn risk-adjusted yields from borrowers backed by high-quality, liquid assets.

According to Paul Frambot, CEO and co-founder of Morpho, users are encouraged to utilize their stablecoins actively instead of letting them sit idle. He emphasized that the integration of Morpho Vaults into SafePal provides an open, on-chain lending infrastructure that allows users to earn yield while keeping their assets fully non-custodial and transparent.

The Walletdrop Campaign

The second component of this initiative is the launch of a Walletdrop campaign. Users who deposit in the Morpho USDT and USDC vaults through the SafePal Earn platform will have the opportunity to win one of 500 co-branded hardware wallets.

This campaign aims to enhance user security and promote long-term self-custody, according to the partners involved.

Morpho x SafePal Limited Edition Walletdrop

The exclusive collection is based on the SafePal X1, which is the latest open-source model in the wallet suite, now equipped with Bluetooth technology.

Moreover, the planned activation perks will include improved yield opportunities on Morpho Vaults accessed via SafePal.

Recently, the SafePal wallet suite successfully upgraded its hardware wallets from EAL5+ to EAL6+ security chipsets, enhancing both security measures and access to reliable yield options.

Addressing Security Concerns

Enhancing security remains a top priority, as highlighted in the press release.

Veronica Wong, CEO and co-founder of SafePal, noted that “unfortunate events like the recent $36 million hack of Upbit indicate that the usage of cold storage is still below optimal levels.” The Morpho Walletdrop is seen as an initiative to promote hardware wallet adoption while maximizing security, which is particularly beneficial for users engaging in long-term stablecoin staking strategies.

Furthermore, the team pointed out the heightened volatility in the market and the rising user concerns following the collapse of Stream Finance, which lost $93 million, as well as the destabilization of its XUSD stablecoin.

Wong articulated that “the issue with the XUSD depeg underscores how non-transparent, off-chain yield structures can present significant risks to investors and the broader ecosystem.”

SafePal is a non-custodial crypto wallet with 25 million users across 200 blockchains, offering hardware, software, and browser extension wallet options. Founded in 2018, SafePal enjoys backing from notable investors like Animoca Brands, Binance, and Superscrypt.

On the other hand, Morpho operates as a universal lending network, holding $10 billion in deposits. It provides a framework for businesses to leverage its lending and borrowing infrastructure at scale.