Aave has been leading the way in the realm of lending & borrowing. But, some obvious issues w Aave are:

• Discrepancy betn lending and borrowing rates

• varying interest rates.

an emerging star in this space is morpho, with already $1.5B supplied they are set to create a more capital efficient, trustless & permissionless liquidity marketplace for users & protocols.

a quick view of how morpho works.

(1) Morpho Protocol: A decentralised platform that enables efficient permissionless market creation.

Key abilities:

• Deposit funds in vaults.

• all markets are contained within a single smart contract. This design simplifies the protocol and significantly reduces gas consumption when users interact with multiple markets.

• Integrate Morpho protocol in your dapp.

(2) Morpho Vaults: A place where lenders can deposit their money and earn APY from borrowers and/or underlying pools.

Each vault can have a owner, curator, allocator(s) & guardian each w unique responsibilities, to ensure optimal functioning of the vault.

some % of funds from the vault is sent to morpho market for borrowers to borrow from.

anyone can create a run a vault permissionlessly.