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As with every dapp, there are several risks associated with it.
First, there is Oracle Risk. No oracle is immune to price manipulation, so when it comes to picking one. Choose the one with the most users and that is credible.
Second, you need to consider the risk with your other party. This could be the asset they chose to use as collateral, and if the list of assets they included.
Lastly, while Morpho does do auditing with some of the best security in the industry. There's always a chance of an exploitation
For more information regarding risks, be sure to check out the documentation, which you can find here
Morpho makes money by including different fee types, depending on which service you choose
Vaults 1:
There is only a single performance fee, which is calculated by the yield of the vault. It fluctuates based on how it is performing and is capped at 50%
Valuts 2:
There is a performance fee, but also a management fee. The difference is that it is calculated based on the annualized value of the total assets in the vault. It is capped at 5% per year
You earn based on two things: borrowing from the market or supplying assets to it.
Aside from the yield, Morpho distributes its token to users every 8 hours, which acts as a governance token.
You can even receive other types of tokens and rewards based on the vault curators and market creators
Learn more about claiming here
https://docs.morpho.org/learn/concepts/rewards/
It is easy to use in terms of UX and get your door into deFi
It's incredibly transparent on how much you'll earn, how much the platform takes, and the risk associated. So you know exactly if it is worth it or not
Compared to competitors in terms of rewards, it is the most stable, with being sideways between a $1-2$, so you know you'll be rewarded properly
I would say it is worth checking out for something reliable and safe, but if you have a higher risk tolerance and want something more speculative, then there are other protocols for you
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