Mt Pelerin – USD Senior Strategies

A portfolio of senior and first-loss-protected yield products. The vault is not itself a tranche: it invests in senior positions where a junior layer absorbs losses first. These include senior tranches issued by tranching protocols such as Royco and Strata, and the senior yield tokens of stablecoin issuers with a built-in junior layer, such as Avant's savUSD. Exposure is taken directly, through Pendle PT and LP on these assets, or by lending on Morpho against them as collateral.

Main risks: losses exceeding the junior buffer, smart-contract risk of each protocol and of Pendle and Morpho, oracle and valuation risk on the underlying assets, and exit delays set by the underlying protocols.