# sky.money proposes new Morpho vault markets and sUSDS/USDT migration

> The proposed replacement sUSDS/USDT market uses a 96.5% LLTV and caps the USDT oracle leg at $1.00.

- URL: https://riadefi.com/on-chain/2026-07-27-morpho-sky-vault-market-update/
- Type: Economic change
- Stage: Proposed
- Evidence: developing
- Materiality: watch
- Event date: 2026-07-27
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Follow-up: 2026-08-21
- Advisor-relevant: no
- Affects: Morpho Blue (protocol)

Developing. Some claims here are not yet confirmed; they are listed apart from the confirmed facts. A new version replaces this one when the primary evidence changes.

## What happened

sky.money announced planned allocation changes for its Morpho USDT Savings and USDS Flagship vaults, including two new isolated markets and a gradual migration away from an existing sUSDS/USDT market.

## What changed

The proposed replacement sUSDS/USDT market uses a 96.5% LLTV and caps the USDT oracle leg at $1.00. A PT-sUSDS-26NOV2026/USDS market with a 91.5% LLTV and linear-discount oracle was also slated for the USDS vault. The old market's utilization and rates would be increased gradually to encourage migration.

## What did not change

The record does not establish execution on-chain and does not identify the held Steakhouse-curated Morpho vaults as affected. Morpho Blue's core contracts were not described as changing.

## Confirmed

- The proposed capped sUSDS/USDT market ID is 0x26b178d49895f80ca3c39b2745efc4cd9adcddfcc73dae93e531e86977ec4d96.
- The proposed PT-sUSDS-26NOV2026/USDS market ID is 0x9a8dab6de1059e6dc66c34b358764b70effb289e514e237f3161ffb09eaaf24f.
- The announced LLTVs were 96.5% for sUSDS/USDT and 91.5% for PT-sUSDS/USDS.
- The announcement described a gradual migration incentive for borrowers in the older sUSDS/USDT market.

## Still open

- On-chain execution and final vault allocations were not confirmed by the cached record.
- The realized liquidation and exit-liquidity effects of the capped oracle and high-LLTV markets remain unknown.

## What it means for an advisor

- Monitor the new markets as examples of curator-specific oracle and high-LLTV risk within Morpho.
- Do not infer that these sky.money vaults or markets are covered by approval of separately diligenced Morpho vaults.
- No held-vault kill criterion is established because the record does not affect a vault identified as held.

## Sources

1. [Updating the sky.money USDT Savings Vault & USDS Flagship Vault](https://forum.morpho.org/t/updating-the-sky-money-usdt-savings-vault-usds-flagship-vault/2368) · Morpho Blue · 2026-07-27


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.