Core Concept

MetaMorpho combines the best of isolated markets and multi-asset lending pools to create a better way to lend. Over time, it is anticipated that MetaMorpho vaults will emerge as the standard lending solution.

The Morpho Approach

There are two main approaches to structuring lending markets in decentralized finance: lending pools and isolated markets. The former excels in providing a straightforward user experience and aggregates liquidity but lacks the efficiency and flexibility needed for significant scalability. Conversely, the latter unlocks notably higher levels of efficiency and flexibility but introduces a more complex user experience and liquidity fragmentation.

Thus, the question arises: How does one combine the simple user experience and aggregated liquidity of lending pools with the efficiency and flexibility of isolated markets?

The answer: MetaMorpho & Morpho Blue.

Morpho Blue is a remarkably simple and immutable lending primitive that enables the permissionless creation of isolated markets. MetaMorpho is a separate protocol for creating MetaMorpho Vaults (lending vaults) on top of Morpho Blue.

Although built independently, MetaMorpho vaults are fully integrated into Morpho Blue. At the base layer, Morpho Blue provides efficient, secure, and flexible isolated markets. Built on top, MetaMorpho vaults simplify the lending user experience and aggregate liquidity offering users the best of both isolated markets and lending pools.