Morpho Vaults Overview

Morpho is a leading lending primitive in DeFi. It provides a trustless lending/borrowing layer (Morpho) combined with an abstracted non-custodial risk and yield vault management layer (Morpho Vaults).

Borrowers deposit collateral to borrow loan assets from Morpho Markets, and suppliers supply loan assets to Morpho Vaults. As Vault Curator, we allocate Vault supply to Morpho Markets, optimizing for risk-adjusted yield based on a Vault strategy. Once created, all Morpho Markets are immutable and cannot be edited, providing a stable and reliable infrastructure layer.

Morpho’s unique structure enables the launch of isolated lending markets, each specifying:

• One collateral asset

• One loan asset

• Liquidation Loan To Value (LLTV)

• Interest Rate Model (IRM)

• Oracle