Bitwise Launches PAPY Premium RWA Vault on Morpho: Compliance Bridge or Centralized Yield Trap in the Bear

The latency spike hit like a flash loan exploit but in reverse. Bitwise just dropped PAPY, its premium RWA vault, straight onto Morpho and the chain's response was immediate: TVL projections bleeding toward twenty million within the first week as institutions eyed the compliance wrapper around tokenized treasuries. Ignore the slick Morpho dashboard screenshots flooding X. Look closer. This isn't a DeFi breakthrough; it's a centralized asset manager leveraging audited lending protocols to generate 4-5 percent yields from U.S. government bonds while users lock in exposure they can't fully exit. The bear market doesn't buy narratives anymore. It audits for single points of failure. And PAPY just lit up every single one.