About

Morpho is a noncustodial lending protocol for overcollateralized borrowing and lending of crypto assets on EVM networks. The core protocol implements permissionless isolated markets defined by collateral asset, loan asset and fixed risk parameters, and tracks lender balances, borrower debt and interest accrual on chain. On top of this base layer, Morpho Vaults accept deposits and allocate liquidity across selected markets within predefined risk guidelines, providing passive exposure to lending strategies while leaving collateral management and liquidations to the underlying markets.

History

Morpho is a decentralized finance (DeFi) lending protocol that provides permissionless, noncustodial infrastructure for onchain lending and borrowing. Users can supply crypto assets to earn yield or borrow assets against collateral, while developers, asset managers, and other protocols can use Morpho as infrastructure for building lending markets, yield products, and other credit applications.

Morpho is built around isolated lending markets, with each market defining its own loan asset, collateral asset, oracle, interest rate model, and liquidation parameters. Unlike pooled lending protocols where multiple assets share risk within a common market, Morpho isolates risk between individual lending markets. Its permissionless design allows new markets to be created without requiring governance approval, giving market participants greater flexibility over supported assets and risk parameters.

Morpho also supports lending vaults that allocate deposited assets across Morpho markets based on defined risk and allocation policies. These vaults allow users to delegate market selection and liquidity management to specialized curators while retaining exposure to Morpho's underlying lending infrastructure. Together, Morpho's lending markets and vaults form a modular, composable layer for decentralized lending, borrowing, credit, and onchain asset management.