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Handling Permissioned Tokens in the Morpho App

Some loan assets and collaterals supported by the Morpho protocol are permissioned tokens. These tokens require specific contract whitelisting to function properly in the Morpho app (frontend & SDKs).

Indeed, Morpho’s Bundler3 system uses adapters to handle token operations and the main Morpho app and SDK require the general adapter to simulate and execute transactions involving permissioned tokens. If the general adapter is not whitelisted, the bundler flow breaks and users cannot interact with permissioned tokens through the app.

Issuer whitelisting requirements

To enable a permissioned token to work in the Morpho app, the token issuer must whitelist at token level the following contracts:

  • Morpho - core lending protocol
  • GeneralAdapter1 (EthereumGeneralAdapter1 for Ethereum mainnet) - required for the frontend and SDK to handle permissioned tokens

All contract deployment addresses are available in the addresses page.

Without the general adapter whitelisted, the Morpho app cannot simulate or execute user transactions with permissioned tokens.

Permit2 and approval UX

Permit2 is not required for permissioned tokens to work with Morpho. It is an optional improvement that can make the frontend flow smoother by letting users sign an off-chain approval instead of sending a separate ERC-20 approve transaction.

If Permit2 is available on the target chain and the issuer wants to support this signature-based approval flow, the issuer should also whitelist the Permit2 contract at token level. Permit2 contract implementations are maintained in the Uniswap Permit2 repository.

The Morpho SDK handles this as a best-effort path: when signature support is enabled, it can return Permit / Permit2 signature requests where supported, and otherwise falls back to the standard approval flow. Permissioned-token support should therefore depend on Morpho and GeneralAdapter1 being whitelisted, with Permit2 whitelisting treated as optional UX enhancement.

When listing a permissioned token, curators must review and confirm with the asset issuer that the contracts whitelisting is properly implemented.