USD Carry Trade
A stablecoin carry trade on Morpho. Borrow aUSD against SPYx collateral at a low rate and deposit it into the Flowdesk aUSD RWA Strategy vault for a higher yield. Profit from the spread between borrow cost and vault APY.
Est. Net APY
~12.7%
Risk Level
Moderate
Duration
Ongoing
How It Works
Capital flow through the carry trade
Process & Execution
Collateralize SPYx
Deposit SPYx tokens as collateral into the Morpho SPYx/aUSD lending market.
Borrow aUSD
Borrow aUSD against your SPYx collateral at the market borrow rate.
Deposit into Flowdesk Vault
Supply borrowed aUSD into the Morpho Flowdesk aUSD RWA Strategy vault to earn yield.
Earn the Spread
Profit from the difference between the vault yield and the borrow cost on aUSD.
Monitor Health Factor
Maintain a safe collateral ratio to avoid liquidation on the SPYx/aUSD market.
Unwind Position
Withdraw aUSD from vault, repay borrow, and reclaim SPYx collateral.
Risk Overview
Market Risks
- SPYx price decline reducing collateral value
- Borrow rate spikes narrowing or inverting the spread
- aUSD depeg risk affecting both borrow and deposit sides
System Risks
- Morpho smart contract vulnerability
- Flowdesk vault strategy risk
- Oracle dependency for SPYx pricing
Execution Risks
- Liquidation if health factor drops below threshold
- Vault withdrawal delays or liquidity constraints
- Gas cost erosion on smaller positions