Vaults is a lending product that relies on non-custodial (embedded) wallets. When you activate it, you lend your USDC or MXNB to borrowers through the Morpho protocol, and earn variable yield in return.

This type of lending works differently from a bank account or a fixed-rate product: there's no regulated institution holding your funds, you control your funds at all time and your return depends on the protocol's rules, not on a fixed promise from Bitso.

Your funds sit in a smart contract, not in Bitso's custody. This means Bitso doesn't hold your money while it's in Vaults.

What is Morpho?

Morpho is the lending protocol that powers Vaults. It's an open protocol that connects people who lend crypto with people who borrow it, using smart contracts to automate the rules of that relationship.

The vault we use within Morpho is curated by Gauntlet, a company specialized in protocol risk management, responsible for setting the vault's risk parameters. Bitso doesn't operate, own or control the Morpho protocol.

What is a Morpho Vault?

The Morpho Vault is the lending pool within the Morpho protocol that holds your USDC or MXNB.

The Morpho Vault used for this product is curated by Gauntlet, a company specialized in protocol risk management. Gauntlet decides how the pooled funds are allocated and sets the vault's risk limits. Bitso doesn't set or control these parameters.

What is an embedded wallet?

It's a non-custodial wallet automatically created for you the first time you activate Vaults. It allows you to control your own funds, and lets you operate with the Morpho protocol. As long as your embedded wallet is linked to your Bitso account you don't need to manage it, handle keys, or keep recovery phrases. It keeps showing in the app even after you transfer your full balance back to Bitso (with a zero balance).