> For the complete documentation index, see [llms.txt](https://docs.shredpay.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.shredpay.xyz/yield-products/clearstar-usdc-reactor.md).

# Clearstar USDC Reactor

#### About this vault

This Earn vault generates yield by supplying USDC into Morpho through the Clearstar USDC Reactor, a dynamically managed lending strategy curated by Clearstar.

#### What is Morpho?

Morpho is an on-chain lending protocol where depositors supply assets to earn interest from borrowers who borrow against over-collateralized collateral.

#### How this vault works

**01 Deposit into the Clearstar USDC Reactor**\
Deposit USDC into this vault on the Base network. Your funds are supplied to a curator-managed reactor strategy that dynamically allocates capital based on predefined risk and efficiency parameters.

**02 Dynamic allocation across Morpho Markets**\
The reactor automatically routes liquidity across Morpho Markets approved by Clearstar, applying caps and rebalancing logic to optimize capital efficiency while managing risk exposure.

**03 Earn yield from borrower interest**\
Yield is generated from interest paid by borrowers across the underlying Morpho Markets. Returns may vary depending on utilization and market conditions.

🔗 **Morpho vault link:**\
<https://app.morpho.org/base/vault/0x1D3b1Cd0a0f242d598834b3F2d126dC6bd774657/clearstar-usdc-reactor>
