Subscribe to Morpho
MorphoUnderstanding Morpho Vaults: Intro & Simplifying Isolated Markets
Morpho Vaults combines the best of isolated markets and multi-asset lending pools to create a better way to lend. In time, we believe Morpho Vaults will become the default lending solution. Today, we are introducing a four-part series explaining why, starting with Part One: Intro to the Morpho Approach & Simplifying Isolated Markets.The Morpho ApproachThere are two main approaches to structuring lending markets in decentralized finance: lending pools and isolated markets. The former excels in...
MorphoAligning Around MORPHO — The Only Asset For Morpho
TL;DRMorpho will have only one asset—the MORPHO token. This single-asset approach ensures complete alignment between the network of contributing entities and the Morpho DAO (MORPHO token holders). To clarify this alignment, Morpho Labs is becoming a wholly-owned subsidiary of the Morpho Association to eliminate any perceived conflicts with equity value and ensure that token holders and these contributing entities share the same incentive. As the Morpho DAO explores introducing protocol fees t...
MorphoUnderstanding Morpho Vaults: Enabling Diverse Risk Profile
Morpho Vaults (formerly known as MetaMorpho Vaults) combines the best of isolated markets and multi-asset lending pools to create a better way to lend. In time, we believe Morpho Vaults will become the default lending solution. Last week, we introduced the Understanding Morpho Vaults article series with Part One: Intro to the Morpho Approach & Simplifying Isolated Markets. Today, we share Part Two: Enabling Diverse Risk Profiles to explain how, unlike the traditional one-size-fits-all approac...
>200 subscribers
MorphoUnderstanding Morpho Vaults: Intro & Simplifying Isolated Markets
Morpho Vaults combines the best of isolated markets and multi-asset lending pools to create a better way to lend. In time, we believe Morpho Vaults will become the default lending solution. Today, we are introducing a four-part series explaining why, starting with Part One: Intro to the Morpho Approach & Simplifying Isolated Markets.The Morpho ApproachThere are two main approaches to structuring lending markets in decentralized finance: lending pools and isolated markets. The former excels in...
MorphoAligning Around MORPHO — The Only Asset For Morpho
TL;DRMorpho will have only one asset—the MORPHO token. This single-asset approach ensures complete alignment between the network of contributing entities and the Morpho DAO (MORPHO token holders). To clarify this alignment, Morpho Labs is becoming a wholly-owned subsidiary of the Morpho Association to eliminate any perceived conflicts with equity value and ensure that token holders and these contributing entities share the same incentive. As the Morpho DAO explores introducing protocol fees t...
MorphoUnderstanding Morpho Vaults: Enabling Diverse Risk Profile
Morpho Vaults (formerly known as MetaMorpho Vaults) combines the best of isolated markets and multi-asset lending pools to create a better way to lend. In time, we believe Morpho Vaults will become the default lending solution. Last week, we introduced the Understanding Morpho Vaults article series with Part One: Intro to the Morpho Approach & Simplifying Isolated Markets. Today, we share Part Two: Enabling Diverse Risk Profiles to explain how, unlike the traditional one-size-fits-all approac...
Share Dialog
Share Dialog
Today, we’re announcing Morpho Vaults 1.1, an improvement to the widely adopted Morpho Vaults 1.0 that has become a staple of the DeFi ecosystem. This latest version retains the same core functionality of Morpho Vaults 1.0 while removing automated bad debt realization at the vault level, enabling greater adaptability for a broader range of integrations and use cases. In addition, Morpho Vaults 1.1 introduces several quality-of-life improvements for Morpho curators.
Following security audits from Spearbit and OpenZepplin, the Morpho Vaults 1.1 factory has been deployed on Ethereum and Base. This latest version will also be used for Morpho’s cross-chain vision, where the Morpho Stack will be deployed on over 20 new chains, bringing Morpho’s permissionless infrastructure to several new ecosystems.
Morpho Vaults 1.1 is an independent codebase separate from Morpho Markets or Morpho Vaults 1.0, which remains immutable and unchanged. The new 1.1 vaults are designed to seamlessly connect to the existing Morpho network, coexisting alongside Morpho Vaults 1.0 and sharing liquidity to the extent they allocate to the same markets.
Morpho Vaults have become a key component of the DeFi ecosystem, with growing demand to integrate them across many protocols and diverse use cases. While the automated bad debt realization mechanism in Morpho Vaults 1.0 safeguards against bad debt accumulation, it limits compatibility with emerging use cases.
With Morpho Vaults 1.1, automated bad debt realization is removed, unlocking:
Broader integrations: The update enables Morpho Vaults 1.1 to be utilized more widely in the growing number of B2B integrations.
Insurance and reserve innovation: The change opens a new design space for reserve-type products built specifically for Morpho Vaults. For example, curators could redirect a portion of interest generated by the vault into a reserve fund or implement custom safety modules similar to Umbrella to cover potential bad debt.
Morpho Vaults 1.1 comes with quality-of-life enhancements designed to enhance the experience for Morpho curators:
Curators can update vault names.
Curators can update vault symbols.
Timelock can be set to 0 at deployment to streamline the initial setup process.
Note that once a vault timelock is increased from 0, the minimum timelock becomes 24 hours to preserve Morpho Vaults' noncustodial properties.
The Morpho Stack was designed with a layered architecture to enable continuous improvements without compromising the security of the core protocol or fragmenting liquidity.
With the deployment of Morpho Vaults 1.1, the integrity of other Morpho codebase remains intact. Both Morpho Markets and Morpho Vaults 1.0 are unchanged and fully immutable. Morpho Vaults 1.1 is a separate contract that integrates into the existing network, ensuring zero risk of introducing bugs to existing smart contracts.
As aggregators of Morpho Markets, Morpho Vaults naturally prevent liquidity fragmentation. Both 1.0 and 1.1 versions of Morpho Vaults will coexist, sharing liquidity wherever they allocate to the same underlying markets.
The codebase for Morpho Vaults 1.0 can be found here, along with two audits conducted by Spearbit and Cantina, accessible here.
Today, we’re announcing Morpho Vaults 1.1, an improvement to the widely adopted Morpho Vaults 1.0 that has become a staple of the DeFi ecosystem. This latest version retains the same core functionality of Morpho Vaults 1.0 while removing automated bad debt realization at the vault level, enabling greater adaptability for a broader range of integrations and use cases. In addition, Morpho Vaults 1.1 introduces several quality-of-life improvements for Morpho curators.
Following security audits from Spearbit and OpenZepplin, the Morpho Vaults 1.1 factory has been deployed on Ethereum and Base. This latest version will also be used for Morpho’s cross-chain vision, where the Morpho Stack will be deployed on over 20 new chains, bringing Morpho’s permissionless infrastructure to several new ecosystems.
Morpho Vaults 1.1 is an independent codebase separate from Morpho Markets or Morpho Vaults 1.0, which remains immutable and unchanged. The new 1.1 vaults are designed to seamlessly connect to the existing Morpho network, coexisting alongside Morpho Vaults 1.0 and sharing liquidity to the extent they allocate to the same markets.
Morpho Vaults have become a key component of the DeFi ecosystem, with growing demand to integrate them across many protocols and diverse use cases. While the automated bad debt realization mechanism in Morpho Vaults 1.0 safeguards against bad debt accumulation, it limits compatibility with emerging use cases.
With Morpho Vaults 1.1, automated bad debt realization is removed, unlocking:
Broader integrations: The update enables Morpho Vaults 1.1 to be utilized more widely in the growing number of B2B integrations.
Insurance and reserve innovation: The change opens a new design space for reserve-type products built specifically for Morpho Vaults. For example, curators could redirect a portion of interest generated by the vault into a reserve fund or implement custom safety modules similar to Umbrella to cover potential bad debt.
Morpho Vaults 1.1 comes with quality-of-life enhancements designed to enhance the experience for Morpho curators:
Curators can update vault names.
Curators can update vault symbols.
Timelock can be set to 0 at deployment to streamline the initial setup process.
Note that once a vault timelock is increased from 0, the minimum timelock becomes 24 hours to preserve Morpho Vaults' noncustodial properties.
The Morpho Stack was designed with a layered architecture to enable continuous improvements without compromising the security of the core protocol or fragmenting liquidity.
With the deployment of Morpho Vaults 1.1, the integrity of other Morpho codebase remains intact. Both Morpho Markets and Morpho Vaults 1.0 are unchanged and fully immutable. Morpho Vaults 1.1 is a separate contract that integrates into the existing network, ensuring zero risk of introducing bugs to existing smart contracts.
As aggregators of Morpho Markets, Morpho Vaults naturally prevent liquidity fragmentation. Both 1.0 and 1.1 versions of Morpho Vaults will coexist, sharing liquidity wherever they allocate to the same underlying markets.
The codebase for Morpho Vaults 1.0 can be found here, along with two audits conducted by Spearbit and Cantina, accessible here.
No comments yet