Platform
Market asset
A Blue market pairs one loan asset with one collateral asset. Two USDC markets can use different collateral, oracles, liquidation thresholds and rate models.
Your ecosystem guide / Morpho
Morpho: lending and collateralised borrowing
Morpho combines lending markets with vaults that follow a selected strategy. On Blue, borrowers supply collateral to borrow another asset; lenders supply directly to a market or through a vault. MORPHO participates in protocol governance.
- Platform
- Lending markets and curated vaults
- Verified on 15.10.2026
- Vault V2
- Adapters, caps and vault shares
- Verified on 15.10.2026
- MORPHO
- Protocol governance token
- Verified on 15.10.2026
Morpho
All sections
Deposit asset, vault share and MORPHO
Your position determines the asset you supply and the claim you receive.
Vault share
A vault accepts a specified asset and accounts for deposits in shares. Adapters allocate assets to approved strategies; the share value reflects their results and fees.
Governance
Snapshot votes count MORPHO held on Ethereum mainnet. Voting power can be delegated to another address while the tokens remain in your wallet.
Lending positions
Three ways to use your assets
A vault handles allocation for depositors. Direct supply leaves market selection to you, while borrowing creates debt against collateral.
Deposit into Vault V2
- 01Asset into the vault
- 02Vault shares
- 03Assets in strategies
Source of the result
Allocation results accrue to vault assets. Market interest, adapter position values and fees change the value of each share.
- How to close the position
- Redeem shares for the vault asset. A standard withdrawal uses idle assets first, then available liquidity in the designated adapter.
- What changes the value
- The curator sets permitted strategies and caps; the allocator moves assets. Available liquidity determines the amount that can be withdrawn now.
Supply directly to Blue
- 01Select one market
- 02Supply its loan asset
- 03Accrue market interest
Source of the result
Borrowers in this market pay interest. A supplier receives the result attributable to their share of that market.
- How to close the position
- Withdraw the asset and accrued interest subject to available market liquidity.
- What changes the value
- The market rate model and borrowing demand affect interest. The selected collateral, oracle and LLTV define this position’s terms.
Borrow on Blue
- 01Collateral into a market
- 02Receive the loan asset
- 03Debt plus interest
Source of the result
The borrower gains access to an asset and pays interest to lenders. The position tracks debt and collateral value.
- How to close the position
- Repay the loan asset and accrued interest, then withdraw released collateral. A partial repayment reduces the debt.
- What changes the value
- A position becomes liquidatable when its debt-to-collateral value exceeds LLTV. Adding collateral or repaying debt lowers that ratio.
Who selects the strategy
Vault V2 separates strategy rules, asset allocation and protective actions.
Curator
Enables adapters and sets exposure caps and fees. Some vaults apply eligibility rules to deposits, withdrawals and share transfers.
Liquidity allocation
The allocator moves assets within permitted caps and selects the standard withdrawal adapter. A sentinel can reduce caps and revoke pending changes.
Morpho products and tools
Blue uses variable rates. Midnight sets a maturity date, while Vault V2 aggregates allocations through adapters. Their accounting and exit mechanics differ.
Supply and borrow
Morpho App
Morpho App presents markets and vaults. The selected network and position address determine assets, parameters and available liquidity.
Vault configuration
Curator App
Curator App configures vault strategies, adapters, caps and roles.
Fixed-maturity lending
Midnight
Midnight tracks lender claims and borrower debts in units with a fixed maturity. Each debt unit requires repayment of one loan token; the trade price determines the implied rate for the remaining term. A lender can reduce a position by selling units, while a borrower can buy units or repay directly.
Start with the network and position terms
Connect a wallet to the selected market or vault network. The asset, spending approval and network gas depend on the operation. Under its terms, Morpho Association does not offer its services to citizens, residents or users located in listed restricted territories, including Cuba, Iran and North Korea, or to entities incorporated there or with a registered office there.
Select the right contract
Check the network, deposit asset and vault or market address. Asset names alone do not identify the strategy.
For a vault: allocation and exits
Review the curator, permitted allocations, fees and withdrawable amount. V2 management fees apply to assets; performance fees apply to yield.
For a loan: debt and LLTV
Select collateral and borrowing size with the liquidation threshold in mind. After confirmation, monitor debt and collateral value.
Market interest and vault fees
Borrowers pay for using an asset. A vault can charge for its strategy; the calculation base depends on the fee type.
Shares, debt and votes carry different rights
A share holder has a claim on their position’s assets. MORPHO determines participation in protocol votes.
Close a deposit
Redeem burns shares for the vault asset. When available liquidity is low, it limits a standard withdrawal.
Release collateral
Repayment returns the borrowed asset to the market and reduces debt. Remaining debt determines how much collateral can be withdrawn.
Participate in governance
MORPHO holders vote on protocol fees and permitted parameters for new markets. An existing Blue market’s five creation parameters remain fixed.
Rules, tools and communities
Access terms ↗Blue markets and LLTV ↗Vault V2 architecture ↗V2 withdrawal liquidity ↗Vault yield and fees ↗MORPHO governance ↗Midnight fixed maturity ↗
3 Discord communities on Morpho
Checked on 15.10.2026
Concrete XYZ
Vault tooling with a documented Morpho integration.
Community
About the ecosystem
Api3
Oracle infrastructure provider that also curates Morpho vaults.
Community
About the ecosystem
Merkl
Reward-distribution infrastructure documented in Morpho incentive programs.
Community
About the ecosystem
Full list on discordcatalog.com →
3 sources about Morpho
Morpho co-founders and the official project account on credit markets, vaults and integrations.Checked on 15.10.2026
Morpho
Morpho
Updates on Morpho credit markets, vaults and integrations.
Official
Affiliation confirmed
Paul Frambot
PaulFrambot
Morpho co-founder on protocol development, credit markets and new partnerships.
Official
Affiliation confirmed
Merlin Egalite
MerlinEgalite
Morpho co-founder explaining credit infrastructure and new integrations.
Official
Affiliation confirmed
Full list on xfollowlist.com →
Information reviewed: 15 October 2026
Practical questions
1How does a vault differ from a market?+
A Blue market defines one loan asset and collateral pair. A vault allocates deposited assets through strategy adapters; its curator selects permitted exposures and caps.
2Why can my balance exceed the withdrawable amount?+
Some assets may be borrowed. Vault V2 standard withdrawals use idle assets and the selected adapter’s liquidity; Blue withdrawals use the market’s available assets.
3Do I need to buy MORPHO to deposit?+
You supply the selected vault or market asset. MORPHO is used for governance; network costs follow the transaction network’s rules.
4When can a Blue loan be liquidated?+
When debt divided by oracle-valued collateral exceeds the market LLTV. Interest increases debt and price changes affect collateral value. A liquidator repays part or all of the debt and receives collateral plus a liquidation bonus.