Morpho
Morpho is a trustless and efficient lending primitive with permissionless borrow markets creation featuring fully immutable contracts.
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- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Tags: Lending
- TVL: $3.6B (Rank #10)
- TVL Ranking by Lending: #3
- Blockchain: Ethereum, Base, Optimism, Polygon, Ink, Arbitrum, World Chain, Fraxtal, Scroll
- Chain TVL
- Ethereum: $3.07B
- Base: $525.26M
- Optimism: $5.51
- Polygon: $2
- Ink: $0
- Others: $0
- Code reviewed by several experienced auditors; Spearbit and OpenZeppelin
- Public team promotes accountability
- No documented protocol hacks since launch
- Latest protocol version launched in 2024; maturity over one year minimizes technical risk as smart contracts are well battle-tested
- Top 20% by total value locked slightly reduces risk
- Core contracts require on-chain voting for parameter updates
- No governance token and/or contracts are fully immutable
- No death spiral concerns
- Robust controls to mitigate oracle price manipulation
- Isolated markets enable asset risks to be contained to each individual pool without impacting the entire protocol
- Robust controls in place to prevent risky borrowing
- Basic mechanisms in place to incentivize liquidations
- No reserves or no stability module
What is Morpho
Morpho is a trustless lending primitive with permissionless market creation and permissionless risk management with Morpho Vaults (permissionless risk curation built on top of Morpho). It enables the deployment of isolated lending markets that feature one collateral asset, one loan assets, a liquidation loan-to-value (LLTV), an oracle, and an interest rate manager (IRM). Each parameter is selected at market creation and persists in perpetuity. In other words, contracts on Morpho Blue are immutable. Once a market is created, users can either lend/borrow assets to/from it with certainty that it will persist as long as Ethereum exists and the parameters of the market will never change.
How Morpho makes money
Morpho currently does not take any fees, but there is a fee switch built into the contract that can be activated (per market) via governance. Once activated, revenue from fees will accrue directly to the Morpho DAO.
How you make money on Morpho
As a lender, you earn by depositing assets into Morpho's Vaults, which then allocate your funds across select lending pairs to earn yield. Your earnings are enhanced through optimized asset allocation and risk management by third-party risk curators. Risk curators can decide on allocation but cannot withdraw your funds, only rebalance them within other Morpho lending pairs.
