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Waterline
Vault curator

Waterline: Morpho Vault Curator for Reservoir, infiniFi, M1 and Tenbin USDC Vaults

Waterline is a risk curator on Morpho. It runs USDC lending vaults on Ethereum, each built around one partner's collateral: Reservoir, infiniFi, M1 and Tenbin 12. DefiLlama describes it as building onchain vault solutions "based on client specifications" 6. As of October 23, 2026, its four listed V2 vaults held about $23 million 2. Waterline publishes no legal entity, team or terms 10. On-chain records show shared infrastructure with Steakhouse Financial 45.

Facts checked 10 cited sources No score on this page, no affiliate links
Founded—Vault curator Official siteopens in a new tab Incidents02 on record, none touched funds In our ratingsNot ratedsee all ratings

At a glance

What it is
Vault curator on Morpho 16
Operator
Not disclosed
Chain
Ethereum only 23
Vaults (Oct 23, 2026)
V2: Reservoir USDC, M1 USDC, InfiniFi USDC, Tenbin USDC. V1: Reservoir USDC, infiniFi USDC 23
Assets
About $23.1M in V2 and $0.6M in V1 23
Fees
5% performance fee on every vault; no management fee 23
Facts checked
October 23, 2026

Who is behind Waterline

Morpho lists Waterline as a verified curator with three Ethereum addresses 1. Neither Morpho's records nor DefiLlama name a company, founders or jurisdiction 16. The Morpho governance forum has no Waterline introduction thread.

The on-chain configuration points to Steakhouse Financial, a much larger Morpho curator:

  • Shared fee recipient. Every Waterline vault sends its performance fee to an address that Morpho's API lists under Steakhouse Financial 4.
  • Shared allocator. Every Waterline vault includes a Steakhouse-listed address among its allocators 4.
  • Earlier names. Third-party trackers still show the Reservoir vaults under the name "Steakhouse Reservoir USDC" 5.
  • Same vanity prefix. Waterline's vault addresses start with "0xbeef", like Steakhouse's 23.

Neither firm has published an explanation of the relationship, so whether Waterline is a Steakhouse brand, spin-off or service client is not established.

How Waterline's vaults work

A Morpho vault pools USDC deposits and lends them into isolated markets. The vault's roles divide control 7:

  • Owner: appoints the curator and safety role.
  • Curator: chooses the markets and collateral, sets caps and fees.
  • Allocator: shifts deposits between allowed markets.
  • Sentinel (Guardian in V1): can cut risk or veto pending changes.

Waterline's V2 vaults use one Waterline address as owner and sentinel and another as curator. Each has several allocators. Key changes are timelocked for up to seven days 2. The V1 vaults have separate guardian addresses and three- or seven-day timelocks 3.

Vault (Ethereum) Version Collateral focus Assets (Oct 23, 2026) Fee
Waterline Reservoir USDC V2 Reservoir ecosystem assets about $13.0M 5%
M1 USDC V2 M1-related collateral; deposits allowlisted about $8.6M 5%
Waterline InfiniFi USDC V2 infiniFi ecosystem assets about $1.1M 5%
Tenbin USDC V2 Tenbin ecosystem assets about $0.3M 5%
Waterline Reservoir USDC V1 Reservoir assets about $0.58M 5%
Waterline infiniFi USDC V1 infiniFi assets about $0.06M 5%

The collateral descriptions come from each vault's Morpho metadata 2. The M1 vault accepts deposits only from allowlisted addresses 2. Waterline has no Euler vaults listed in Euler's public labels.

Fees

Waterline charges a 5% performance fee, a share of the interest depositors earn, on every vault, and no management fee 23. Gas is extra. The fee goes to the Steakhouse-listed address described above 4.

Risks to understand

  • Issuer concentration. Each vault lends mostly against one partner ecosystem's tokens, so a depeg or failure at that issuer hits the whole vault. Background: stablecoin depegs.
  • No published risk policy or terms. Depositors can't check Waterline's underwriting standards or the legal entity responsible 10.
  • Liquidity. Withdrawals depend on unborrowed USDC in the underlying markets.

Incident record

2 funds not affected

Stream Finance xUSD and Elixir deUSD collapse

Nov 2025funds not affected
Outcome
No loss found
Loss
Not named among affected lenders. Waterline's vaults lend against Reservoir and infiniFi assets, not xUSD or deUSD.
Source: forklog.com

rsETH bridge exploit

Apr 18, 2026funds not affected
Outcome
No loss found
Loss
USDC-only vaults with ecosystem-stablecoin collateral. Morpho's rsETH exposure was about $1M, with no curator named.
Source: galaxy.com

Questions about Waterline

Is Waterline part of Steakhouse Financial?
It isn't publicly stated. On-chain, Waterline's fees go to a Steakhouse-listed address and the vaults share a Steakhouse-listed allocator 4. Neither firm has explained the arrangement.
What does Waterline charge?
A 5% performance fee on each vault and no management fee, as of October 23, 2026 23.
Can anyone deposit in Waterline's vaults?
Anyone can deposit in the Reservoir, infiniFi and Tenbin vaults through Morpho. The M1 USDC vault is limited to allowlisted participants 2.
Who holds deposits?
Morpho smart contracts. Waterline's roles let it change allocations within caps and timelocks, but not withdraw users' funds 7.

For CoinPulse's separate evaluation, see CoinPulse's Waterline rating and evidence and the Morpho & Euler curator ratings.

Waterline elsewhere on CoinPulse

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Sources

  1. 1[Morpho API — curators](), queried Oct 23, 2026api.morpho.org
  2. 2[Morpho API — Vault V2 by curator](), queried Oct 23, 2026api.morpho.org
  3. 3[Morpho API — Vault V1 by curator](), queried Oct 23, 2026api.morpho.org
  4. 4[Morpho API — vault fee recipients and allocators](), queried Oct 23, 2026api.morpho.org
  5. 5[StakingRewards — Morpho Steakhouse Reservoir USDC (0xbeef346d…)]()stakingrewards.com
  6. 6[DefiLlama — Waterline]()defillama.com
  7. 7[Morpho Docs — Curator]()docs.morpho.org
  8. 8[Forklog — Stream Finance collateral damage (Nov 4, 2025)]()forklog.com
  9. 9[Galaxy Research — KelpDAO LayerZero exploit (Apr 22, 2026)]()galaxy.com
  10. 10Waterline website (www.waterline.build), checked Oct 23, 2026. No company information available.

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What changed on this page

  • 2026-10-232026-10-23 — Profile created.
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