Morpho

Morpho is a non-custodial lending network. Depositors earn yield by supplying assets to Morpho Vaults (a simple “Earn” layer on top of Morpho Blue markets), while borrowers access curated, capital-efficient markets. It’s not staking in the PoS sense—returns come from lending interest and incentives, not from validator rewards.

Quick Facts

• Product: Morpho (permissionless lending + “Earn” vaults). Core: Morpho Blue markets; MetaMorpho/Morpho Vaults for depositor UX.

• Chain & custody: Ethereum; fully non-custodial smart contracts.

• What you earn: Interest paid by borrowers (plus any programmed incentives on specific markets/vaults). APY is variable.

• Governance: MORPHO token controls protocol parameters/fees via the Morpho DAO.

How It Works (at a glance)

1. Pick a vault (e.g., stablecoin or ETH/LST focused) and review its markets, APY, and curator.

2. Deposit your asset → receive vault shares. The vault allocates across chosen Morpho Blue markets.

3. Earn yield from borrower interest (+ any incentives). APY changes with utilization/markets.

4. Withdraw on demand (subject to vault liquidity), or swap vault shares in DeFi if supported.

5. (Optional) Borrowers can open positions directly in Morpho Blue markets that match their collateral/risk needs.