#show-card ## Overview Morpho is an open infrastructure protocol for onchain loans, positioning itself as a highly secure, efficient, and flexible lending platform. Its core mission is to provide a foundational layer for lending and borrowing crypto assets with optimized rates and enhanced capital efficiency. Morpho aims to improve upon existing lending models by offering better terms for both lenders and borrowers through its unique architecture. The project emphasizes decentralization and security, with its codebase undergoing numerous audits and formal verification. Morpho's architecture is designed to be adaptable, allowing for the creation of customized lending solutions. Key benefits of Morpho include reduced borrowing costs, higher collateralization factors for borrowers, and optimized yield generation for lenders. It achieves this by directly matching lenders and borrowers when possible, or by falling back to underlying [[Liquidity|liquidity]] pools, thus aiming to offer improved rates over those platforms alone. The project's background involves a team focused on research and development in the [[Decentralized finance]] space, backed by notable industry investors. To get started with Morpho, users can explore the following resources: | Resource | Link | | ------------------- | ------------------------------------------------------------------------------ | | Official Website | https://morpho.org/ | | Documentation | https://docs.morpho.org/ | | GitHub | https://github.com/morpho-org | | Community (Discord) | Accessible via [Official Website](https://morpho.org/) under Community section | ## Key Services and Features Morpho provides a suite of services and features designed for various participants in the [[DeFI|DeFi]] ecosystem, including individual users, curators, and businesses. ### Earn This feature allows users to deposit their crypto assets and earn interest. Morpho vaults are designed to optimize allocations continuously, aiming to provide competitive yields. Users can select strategies that align with their risk appetite. The platform operates on a [[Custody|custody]] [[Wallet|wallet]]]] basis, meaning users retain control over their assets deposited into trustless [[Smart contract]]. ### Borrow Borrowers can use Morpho to access loans by providing collateral. The platform aims to offer lower borrowing costs and higher collateralization factors compared to some traditional lending protocols. Interest rates are determined on a per-market basis, reflecting the specific collateral and risk profile. Morpho highlights that there are zero extra fees for borrowing. ### Curate (For Curators & Businesses) Curators can leverage Morpho to create and manage lending markets. This feature allows them to earn fees by optimizing [[Yield farming]], risk, and Liquidity for users. The platform provides an open environment where vaults and markets can be deployed quickly using public code. Curators have the flexibility to define custom strategies, permissions, and [[Onchain governance]] for their markets. Morpho emphasizes the scalability of this model, where revenue can grow proportionally to deposits, and curators can benefit from the broader Morpho ecosystem, brand, and distribution network. ### Build (For Curators & Businesses) Morpho offers a robust infrastructure for developers and businesses to build their own custom lending applications and use cases. By utilizing Morpho's shared infrastructure, developers can save time and costs. The Morpho Stack is designed to be flexible, allowing builders to use only the components they need. This promotes ownership, enabling full control over the code, risk management, and fee structures without being subject to external governance. The security of this underlying infrastructure is reinforced by extensive audits and formal verification. ## Security Practices Morpho places a strong emphasis on security, highlighting several industry-leading practices. The platform has undergone over 25 security audits to date. It also runs a significant [[Bounty]] program with rewards up to $2,500,000 to incentivize the discovery and reporting of vulnerabilities. Furthermore, Morpho's codebase is built with formal verification in mind and has been formally verified using tools like Halmos to ensure its correctness and robustness. ## Comparative Analysis This section can be expanded by comparing Morpho to other lending protocols such as Aave, Compound, or newer entrants, focusing on aspects like interest rate mechanisms, efficiency, fees, and supported assets. ## Trusted By and Backers Morpho is trusted by a range of prominent entities in the [[Web3]] space, including Ethena, Angle, Ether.fi, [[Binance]], [[Ledger]], Lido, Maker, Frax, [[Coinbase]], and Summer.fi. The project is also backed by industry leaders such as Andreessen Horowitz (a16z crypto) and Variant.