Adapters

Adapters are the architectural cornerstone of Morpho V2. They are smart contracts that translate between the vault and an external yield source, holding positions on behalf of the vault. The universal adapter model is what gives V2 vaults their flexibility and broader reach.

What Adapters Enable

In V1, vaults could only allocate to Morpho V1 markets. In V2, an adapter can connect a vault to:

• Morpho V1 markets, preserving existing strategies

• Morpho Midnight: the upcoming fixed-rate, fixed-term primitive

• Other Morpho V1 vaults, enabling meta-vault structures

• External protocols across DeFi

This means curators can build strategies that draw from significantly broader liquidity sources, layer vaults inside vaults, or integrate with protocols outside Morpho entirely, all from a single vault contract that suppliers normally interact with.

Adapter Lifecycle and Risk Controls

Adapters are enabled by the Curator and are subject to timelocks before going live. They can also be abdicated, meaning a Curator can permanently and irreversibly disable the ability to enable new adapters of a given type. This hardens the vault's risk surface for institutional suppliers.

For each enabled adapter, exposure is governed by the vault's risk parameter framework: absolute caps, relative caps, and Risk IDs. See "Risk Parameterization & Controls" for more on how Gauntlet uses these to manage vault exposure.