> For the complete documentation index, see [llms.txt](https://steakhouse.financial/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://steakhouse.financial/docs/products/coinbase/steakhouse-usdc-on-coinbase.md).
# Steakhouse USDC on Coinbase
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For more on [Repo](/docs/products/stablecoin-products/blocks/repo.md) strategies
{% endhint %}
{% hint style="success" %}
Vault address on Base: `0xbeeF010f9cb27031ad51e3333f9aF9C6B1228183`
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Steakhouse USDC on Coinbase is a Prime Instant lending vault operated by Steakhouse Financial and available through the Coinbase DeFi Lend integration. The vault deploys depositor USDC into overcollateralized lending markets on Morpho on Base, concentrated in blue-chip collateral pairs (cbBTC, cbETH, WETH, wstETH) with loan-to-value ratios between 77% and 86%.
Our **Prime** mandate is stability, allocating to or lending against only against the most liquid and robust collateral in crypto.
### Vault composition
The vault allocates USDC deposits to overcollateralized crypto-backed loan markets on Morpho on Base, namely:
| Collateral | Liquidation Loan-to-Value | Risk Rating |
| ----------- | ------------------------- | ----------- |
| cbBTC/USDC | 86% | A |
| cbETH/USDC | 77% | A |
| cbETH/USDC | 86% | A |
| WETH/USDC | 86% | A |
| wstETH/USDC | 86% | A |
An updated repository of all our risk ratings for Morpho v1 markets is available in [Morpho V1 Markets](/docs/markets/readme/morpho-v1.md).
### Reallocation
We run automated rebalancing bots to reallocate liquidity to different borrow markets depending on market demand. The effect our algorithm has is to slowly equalize the borrowing rates across all markets over time. The interest rate model is reactive to other suppliers of lending capital as well as borrow activity in different markets.
### Liquidity
As a reminder, Morpho markets target 90% utilization, meaning that generally 10% of deposited assets are available to meet immediate withdrawals requests. The standard interest rate model seeks to trigger borrower repayments when utilization is >90% by increasing the interest rate charged; the inverse is true when utilization is <90%.
For highly-liquid markets with multiple suppliers of capital, most deposits in Steakhouse USDC should be able to remain liquid. Market stress events, when many liquidations happen due to rapid collateral price decline, typically also see withdrawals from most lending vaults, including Prime-tier vaults. Although the risk of complete inability to withdraw is not 0, Prime markets are typically fully liquid even during these market stress events.
## Risk management
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For more information on our risk management processes, please consult our [Risk Management](https://steakhouse.financial/docs/risk-management/).
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The main strategy the vault follows is to allocate to overcollateralized crypto-backed loans, secured mainly by BTC and ETH related collateral with the highest issuer quality and highest available liquidity. We evaluate collateral on this basis by underwriting three key criteria:
* **Asset Rating** assesses the quality of the collateral and the role of stakeholders in managing the underlying asset. It evaluates the risk of default by the issuer, as well as potential losses stemming from technological vulnerabilities or poor governance.
* **Platform Rating** focuses on the resilience of an additional DeFi protocol layer. The platform is the application that transforms the native token into a new one with a different economic purpose. It includes an analysis of the platform’s credibility as an issuer and the risks associated with its technological implementation.
* **Market Rating** examines the risk parameters configured on the DeFi lending markets. It evaluates the oracle mechanism, the structure and correlation of trading pairs, liquidity depth, and credit enhancements (measures that mitigate the risk of asset loss or bad debt).
This underwriting process results in a grade from the below table which helps us allocate different lending markets to different tiers of vaults.
| Rating | Numeric Score | Type |
| ------ | ------------- | ----------------------------------------------- |
| **AA** | 1 | Prime |
| **A** | 2 | Prime |
| **BB** | 3 | High Yield |
| **B** | 4 | High Yield |
| **CC** | 5 | Constrained |
| **C** | 6 | Excluded |
---
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