Lido DAO’s Liquidity Observation Lab will incentivize stETH markets on Morpho Blue, a new base layer for decentralized lending, to enhance stETH’s capabilities as collateral and increase its adoption. stETH is the largest ETH liquid staking token (LST) by market cap (~$21.0B), with its staking rewards and liquidity making it an attractive collateral asset for borrowers. However, its usage remains constrained due to the limitations of existing lending platforms. Morpho Blue is set to change th...

Lido DAO’s Liquidity Observation Lab will incentivize stETH markets on Morpho Blue, a new base layer for decentralized lending, to enhance stETH’s capabilities as collateral and increase its adoption. stETH is the largest ETH liquid staking token (LST) by market cap (~$21.0B), with its staking rewards and liquidity making it an attractive collateral asset for borrowers. However, its usage remains constrained due to the limitations of existing lending platforms. Morpho Blue is set to change th...

Lending and borrowing form a complex market with diverse user needs, risk tolerances, and sophistication levels where no single interface can cater to all use cases effectively. The vision for the Morpho interface is to function as an explorer of the Morpho protocol, offering a comprehensive yet unopinionated way to analyze and interact with Morpho contracts. Of course, many users demand a simple user experience enabled by more feature-rich and specialized applications. For this, we're i...

Lending and borrowing form a complex market with diverse user needs, risk tolerances, and sophistication levels where no single interface can cater to all use cases effectively. The vision for the Morpho interface is to function as an explorer of the Morpho protocol, offering a comprehensive yet unopinionated way to analyze and interact with Morpho contracts. Of course, many users demand a simple user experience enabled by more feature-rich and specialized applications. For this, we're i...

One week ago, we announced Morpho Blue. Today, we unveil MetaMorpho, a protocol that advances our vision for DeFi that is built in layers, like the internet. MetaMorpho is a protocol for permissionless lending vaults built on top of the Morpho Blue protocol.Why MetaMorphoToday, current lending platforms force users into a one-size-fits-all risk profile. This approach fails to address the diverse needs of users and tends to overexpose them to long-tail risk. Morpho Blue solves this by external...

One week ago, we announced Morpho Blue. Today, we unveil MetaMorpho, a protocol that advances our vision for DeFi that is built in layers, like the internet. MetaMorpho is a protocol for permissionless lending vaults built on top of the Morpho Blue protocol.Why MetaMorphoToday, current lending platforms force users into a one-size-fits-all risk profile. This approach fails to address the diverse needs of users and tends to overexpose them to long-tail risk. Morpho Blue solves this by external...

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...

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...

A Lending market for Backed bTokens, specifically wbIB01 (permissioned bIB01), has been created on Morpho Blue to enhance the borrowing capabilities of wbIB01 collateral and raise the base rate earned by USDC lenders. Issued by Backed, bTokens are tokenized RWA like bonds and stocks which can be both permissioned and permissionless. Unlike crypto-native assets, bTokens like bIB01 have yet to be adopted by existing DAO-governed lending platforms, limiting use cases for bTokens. Morpho Blue ena...

A Lending market for Backed bTokens, specifically wbIB01 (permissioned bIB01), has been created on Morpho Blue to enhance the borrowing capabilities of wbIB01 collateral and raise the base rate earned by USDC lenders. Issued by Backed, bTokens are tokenized RWA like bonds and stocks which can be both permissioned and permissionless. Unlike crypto-native assets, bTokens like bIB01 have yet to be adopted by existing DAO-governed lending platforms, limiting use cases for bTokens. Morpho Blue ena...

The ScopeThe aim of the integration team is to onboard and assist all types of Morpho Blue or MetaMorpho integrators. This team, composed of engineers, has a wide scope. Think of it as a dedicated task force for serving integrators. The integration team can provide assistance in a variety of ways:Answering questions to speed up the integration process.Helping market creators ensure their markets are configured as they want it.Assisting vault curators in setting up their vaults.Enhancing the s...

The ScopeThe aim of the integration team is to onboard and assist all types of Morpho Blue or MetaMorpho integrators. This team, composed of engineers, has a wide scope. Think of it as a dedicated task force for serving integrators. The integration team can provide assistance in a variety of ways:Answering questions to speed up the integration process.Helping market creators ensure their markets are configured as they want it.Assisting vault curators in setting up their vaults.Enhancing the s...

Today, we introduce the AdaptiveCurveIRM, an immutable Interest Rate Model (IRM) designed specifically for Morpho Blue. In Morpho Blue, the interest borrowers pay is defined by an Interest Rate Model that is chosen at market creation among a governance-approved set. At launch, this set will be composed of one immutable IRM, the AdaptiveCurveIRM. This article delves into the rationale behind this model, its benefits and explains how it operates.Key CharacteristicsHigh EfficiencyThe AdaptiveCur...

Today, we introduce the AdaptiveCurveIRM, an immutable Interest Rate Model (IRM) designed specifically for Morpho Blue. In Morpho Blue, the interest borrowers pay is defined by an Interest Rate Model that is chosen at market creation among a governance-approved set. At launch, this set will be composed of one immutable IRM, the AdaptiveCurveIRM. This article delves into the rationale behind this model, its benefits and explains how it operates.Key CharacteristicsHigh EfficiencyThe AdaptiveCur...

Led by Quentin Garchery, the formal verification of Morpho Blue involved collaboration with other companies and individuals. Morpho Labs would like to thank members of Certora, specifically Jochen Hoenicke, and Daejun Park from a16z for their contributions.Designed as a base layer for decentralized lending, software correctness and security are paramount for Morpho Blue. Ensuring this involves a multi-faceted process across several phases, from pre-build to post-deployment. However, when prov...

Led by Quentin Garchery, the formal verification of Morpho Blue involved collaboration with other companies and individuals. Morpho Labs would like to thank members of Certora, specifically Jochen Hoenicke, and Daejun Park from a16z for their contributions.Designed as a base layer for decentralized lending, software correctness and security are paramount for Morpho Blue. Ensuring this involves a multi-faceted process across several phases, from pre-build to post-deployment. However, when prov...

Morpho Blue is more flexible than any other lending protocol, with the ability to select any collateral asset, loan asset, liquidation LTV (LLTV), interest rate model (IRM), and oracle at market creation. On Morpho Blue, as with any over-collateralized lending protocol, high-quality pricing is key. The LLTV must have a sufficient buffer so liquidators can liquidate unhealthy positions to avoid bad debt. The reliability of the oracle to provide accurate pricing of an asset impacts LLTV. A high...

Morpho Blue is more flexible than any other lending protocol, with the ability to select any collateral asset, loan asset, liquidation LTV (LLTV), interest rate model (IRM), and oracle at market creation. On Morpho Blue, as with any over-collateralized lending protocol, high-quality pricing is key. The LLTV must have a sufficient buffer so liquidators can liquidate unhealthy positions to avoid bad debt. The reliability of the oracle to provide accurate pricing of an asset impacts LLTV. A high...

Today, we published the whitepaper and released the code of Morpho Blue, a new lending protocol. Morpho Blue’s narrow focus enables trustless and efficient lending and borrowing of assets. It provides users with higher collateralization factors, improved interest rates, significantly reduced gas costs, and permissionless market creation. By separating risk management from the immutable core protocol, Morpho Blue will serve as an open base layer capable of bringing a previously unimaginable le...

Today, we published the whitepaper and released the code of Morpho Blue, a new lending protocol. Morpho Blue’s narrow focus enables trustless and efficient lending and borrowing of assets. It provides users with higher collateralization factors, improved interest rates, significantly reduced gas costs, and permissionless market creation. By separating risk management from the immutable core protocol, Morpho Blue will serve as an open base layer capable of bringing a previously unimaginable le...

DeFi is still nascent and developing, with many of its components still to be refined in the coming years. Yet, if we are being honest with ourselves, there are also parts of the stack we should spend more time challenging. Decentralized risk management has largely been a taboo topic as it has become critical to the security of some DeFi platforms while remaining very centralized and opaque to most. Let’s look at the state of risk management today, primarily through the lens of decentralized ...

DeFi is still nascent and developing, with many of its components still to be refined in the coming years. Yet, if we are being honest with ourselves, there are also parts of the stack we should spend more time challenging. Decentralized risk management has largely been a taboo topic as it has become critical to the security of some DeFi platforms while remaining very centralized and opaque to most. Let’s look at the state of risk management today, primarily through the lens of decentralized ...

Morpho Labs has teamed up with Cantina for the inaugural security review competition hosted on their new platform built by security researchers for security researchers. The competition at a glance:November 13th 10:00 UTC to December 4th 10:00 UTC$200k total prize pool3000 lines of immutable codeThe scope includes Morpho Blue, MetaMorpho, and their relevant peripheries, which we will dive into further detail below. Not only is this competition a first of its kind for Morpho, Cantina, and the ...

Morpho Labs has teamed up with Cantina for the inaugural security review competition hosted on their new platform built by security researchers for security researchers. The competition at a glance:November 13th 10:00 UTC to December 4th 10:00 UTC$200k total prize pool3000 lines of immutable codeThe scope includes Morpho Blue, MetaMorpho, and their relevant peripheries, which we will dive into further detail below. Not only is this competition a first of its kind for Morpho, Cantina, and the ...