# Morpho 101

> what's morpho? what's morpho vaults? how does morpho work?

**Published by:** [BeyondDeFI](https://paragraph.com/@beyonddefi/)
**Published on:** 2024-09-04
**URL:** https://paragraph.com/@beyonddefi/morpho-101

## Content

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

## Publication Information

- [BeyondDeFI](https://paragraph.com/@beyonddefi/): Publication homepage
- [All Posts](https://paragraph.com/@beyonddefi/): More posts from this publication
- [RSS Feed](https://api.paragraph.com/blogs/rss/@beyonddefi): Subscribe to updates

## Optional

- [Collect as NFT](https://paragraph.com/@beyonddefi/morpho-101): Support the author by collecting this post
- [View Collectors](https://paragraph.com/@beyonddefi/morpho-101/collectors): See who has collected this post