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About Morpho
Morpho is a DeFi lending protocol that improves upon traditional lending pools like Aave and Compound. By matching lenders and borrowers peer-to-peer when possible, Morpho provides better rates for both sides.
Morpho started as an optimizer layer on top of Aave and Compound, automatically routing users to get the best rates. With Morpho Blue, it evolved into a standalone primitive enabling permissionless market creation.
Morpho Blue allows anyone to create lending markets with any collateral and loan assets, custom parameters, and oracles. This modular approach has attracted significant TVL and institutional interest.
Key Features
Rate Optimization
Better rates through P2P matching
Morpho Blue
Permissionless market creation
Capital Efficient
Higher utilization, better returns
Immutable
Core contracts cannot be upgraded
Flexible Markets
Any asset pair with custom parameters
Risk Isolation
Each market is independent
Use Cases
Optimized Lending
Earn better rates than pool lending
Efficient Borrowing
Pay lower rates on loans
Custom Markets
Create markets for any asset pair
Vault Management
Build lending strategies on Morpho
Institutional DeFi
Risk-isolated markets for institutions
Project Info
Frequently Asked Questions
MORPHO is the governance token for the Morpho protocol. Token holders can vote on protocol parameters and treasury allocation. MORPHO is distributed to users of the protocol through various incentive programs.
Traditional lending pools have a spread between supply and borrow rates. Morpho matches lenders and borrowers directly (P2P) when possible, eliminating the spread. Unmatched users fall back to the underlying pool, so rates are never worse.
Morpho Blue is a primitive for permissionless lending market creation. Unlike Aave/Compound with curated assets, anyone can create a Morpho Blue market with any collateral, loan asset, oracle, and parameters. Markets are isolated for risk management.
Morpho's core contracts are immutable (can't be upgraded), reducing governance risk. The protocol has been extensively audited. Morpho Blue markets are isolated, so issues in one market don't affect others. Always verify market parameters before depositing.
Use Morpho Optimizers on top of Aave/Compound for potentially better rates with same underlying security. Use Morpho Blue for access to more asset pairs or if you want immutable, isolated markets. Aave offers more features like flash loans and a broader market.