# PT-sUSDS becomes live Morpho collateral with Sky vault allocation

> PT-sUSDS can now support variable-rate USDS borrowing and leveraged looping, and the curated vault can route depositor USDS into the new market.

- URL: https://riadefi.com/on-chain/2026-07-31-sky-morpho-pt-susds-usds-market-launch/
- Type: Launch or access
- Stage: Live launch
- Evidence: confirmed
- Materiality: material
- Event date: 2026-07-31
- Version: 1, published 2026-08-22 (first published 2026-08-22)
- Advisor-relevant: no
- Affects: Sky (protocol); Morpho Blue (protocol)

## What happened

A Morpho market went live using PT-sUSDS as collateral and USDS as the loan asset, while a Sky.money-curated USDS vault began adding an allocation to that market.

## What changed

PT-sUSDS can now support variable-rate USDS borrowing and leveraged looping, and the curated vault can route depositor USDS into the new market.

## What did not change

The market is outside Sky.money's control and is not a Sky Protocol primitive. The source does not show that any Ketju-approved or client-held Morpho vault allocated to it.

## Confirmed

- A live Morpho market accepts PT-sUSDS collateral and lends USDS.
- The collateral retains its fixed-rate maturity exposure while the USDS borrowing cost is variable.
- Sky.money said its USDS Flagship Vault was adding an allocation to the market.
- Looping increases loan-to-value and liquidation risk.

## Still open

- The market's LLTV, oracle, liquidation penalty, caps, utilization, and liquidity.
- The amount and effective time of the curated-vault allocation.
- Whether any approved or client-held vault touches the market.
- The early-exit liquidity available before PT-sUSDS maturity.

## What it means for an advisor

- Treat the PT-sUSDS market and looping strategy as unapproved until separately underwritten.
- Check approved Morpho-vault allocations for exposure to PT-sUSDS and apply off-list-market controls if applicable.
- Review the Sky memo's integration perimeter without attributing third-party Morpho controls to Sky.

## Sources

1. [Using PT-sUSDS as Collateral on Morpho Vaults](https://sky.money/blog/advanced-strategies-ptsusds-morpho) · Sky · 2026-07-31


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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.