Morpho is a decentralized finance (DeFi) lending protocol that provides permissionless, noncustodial infrastructure for onchain lending and borrowing. Users can lend crypto assets to earn yield or borrow assets against collateral, while developers and asset managers can build lending and credit products on top of Morpho.

Morpho enables lending through isolated markets. Each lending market defines its own loan asset, collateral asset, oracle, interest rate model, and liquidation parameters. Lenders supply assets to earn interest, while borrowers post collateral to borrow assets from the market.

Morpho is designed around permissionless, isolated lending markets rather than a single shared pool of assets. Risk is separated between individual markets, and new markets can be created without requiring governance approval. This gives users and developers greater flexibility over supported assets and lending parameters.

Morpho Vaults are lending vaults that allocate deposited assets across Morpho lending markets according to defined allocation and risk policies. Vaults allow users to delegate market selection and liquidity management to specialized curators rather than selecting individual lending markets themselves.

Yes. Morpho is designed as permissionless lending infrastructure, meaning new lending markets can be created without requiring approval from a centralized operator or protocol governance process. Market creators are responsible for selecting the parameters that define each market.

Lenders earn yield by supplying assets to Morpho lending markets. Borrowers pay interest when they borrow those assets, and that interest is distributed to lenders according to the mechanics of the relevant market or vault.