Improve your lend and borrow APY
Morpho is an on-chain peer-to-peer layer on top of lending pools. Rates are seamlessly improved for borrowers and lenders while preserving the same guarantees.
The Problem with Lending Pools
Pool-based protocols like Compound or Aave keep utilization of the capital low, so users can withdraw or borrow funds at any time. This causes a wide spread between borrow and lend APYs, leading to mediocre rates for both parties.
A new Peer-to-Peer Layer
When liquidity is matched peer-to-peer (P2P), instead of via a pool, the capital utilization rate is 100%, which means superior rates for both borrowers and lenders.
Why are all lending protocols not P2P, then?
The fundamental limitation of P2P matching is that users can’t borrow or withdraw their funds whenever they want. Morpho Protocol changes this.
Morpho, a P2P - Pool hybrid
Morpho combines the efficiency of P2P with the instant liquidity associated with lending pools. Users benefit from improved rates while maintaining pools’ flexibility.
The Lending Pool optimizer
Same liquidity. Morpho users can withdraw or borrow the billions of liquidity that are available in lending pools.
Same risk parameters. Morpho mirrors on-chain the lending pools' oracles, collateral factors, and liquidation parameters.
Improved APY. Morpho increases the efficiency of loans. Better for both lenders and borrowers.
Morpho Labs Team
Morpho Labs is a software development and research company. It is working to develop the Morpho Protocol, its adoption, and its decentralization.