TLDR:
The Optimism Foundation leveraged Covered Vaults to earn covered yield on treasury capital.
Risk transfer was integrated into existing treasury workflows without additional operational complexity.
The initial 7-figure treasury allocation delivered an average net covered APY of 4.62%.
The Optimism Foundation stewards the Optimism Collective, the governance body behind the OP Stack powering over 50 chains, including OP Mainnet and World Chain. Today, the OP Stack represents more than 40% of the Layer 2 market, processing approximately 17 million daily transactions and securing over $5 billion in TVL.
Like many treasury managers deploying capital onchain, the Foundation needed a way to earn yield while transferring the technical and economic risks associated with the underlying strategy, without introducing additional operational complexity.
Covered Vaults are a new primitive built by OpenCover in collaboration with Morpho, Nexus Mutual, Kiln, Utila, Gauntlet, and 15 further design partners. The primitive embeds cover directly into tokenized vault strategies, allowing users to activate protection without changing how they deploy capital.
The Optimism Foundation made an initial 7-figure allocation to the Covered Morpho × Gauntlet USDC Prime vault on OP Mainnet.
Over the first 24 days of the allocation, the position delivered:
• Average underlying vault APY: 5.75%
• Cover premium: 1.13%
• Net covered APY: 4.62%
The Covered Morpho × Gauntlet USDC Prime deployment demonstrates that integrated risk transfer can operate as a native layer of the onchain yield experience, without compromising liquidity, composability, or ease of deployment.
With over $1B in onchain value covered in 2025 alone, OpenCover is the leading onchain risk transfer provider for complex and embedded use cases.
Ready to start earning onchain with peace of mind?
Explore cover products on opencover.com or reach out for tailored onchain risk management.
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