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 high spread between their borrow and lend APY, reducing the efficiency of the entire protocol.
A new Peer-to-Peer Layer
When liquidity is matched peer-to-peer, instead of using a pool, the capital utilization rate is 100%, which means a better rate for both the borrowers and the suppliers.
Why not all protocols are P2P, then?
The main challenge of P2P matching is that users cannot borrow or withdraw their funds whenever they want. But they can with Morpho!
Morpho, a P2P - Pool hybrid
Morpho combines the efficiency of P2P with the liquidity of lending pools. Users enjoy an improved APY while maintaining the pool’s flexibility.
The Lending Pool optimizer
Same liquidity. Morpho users can withdraw or borrow the billions of liquidity that are available in lending pools.
Same liquidation guarantees. Morpho mirrors on-chain the lending pools' oracles and collateral parameters to replicate their liquidation experience.
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.