Morpho Apps

This section details the critical applications developed by Morpho Labs for effective vault management and ecosystem participation. Each application serves specific functions in the curation workflow.

Consumer

Main App - app.morpho.org

Purpose: Interface for both lenders interacting with Morpho vaults and Borrowers interacting with Morpho Markets.

Key Features:

View all Morpho Markets & Morpho Vaults
Deposit, manage, and exit positions in Morpho Vaults
Enter, manage, and exit from borrow positions
Track vault performance metrics
Monitor position health and market statistics

Version: Production

More Resources below

Rates in the Morpho Interface

How Morpho design impacts interest rates

On traditional lending pools such as Aave or Compound, there is a single pool per loan asset, with an associated Interest Rate Model (IRM) that defines the interest rate for that loan asset. While for these protocols it makes sense to look at a market in isolation and therefore rely on its IRM to give a rate projection, for Morpho it doesn't.

Morpho markets structure

On Morpho, there are many markets for the same loan asset, providing a more efficient and flexible protocol, each market having its own rate model (refer to IRM). As a consequence, these individual markets will have a smaller relative size than the single pool approach. Hence, a user interaction will have a higher instantaneous impact on the utilization and, as a result, on the rate.

However, focusing on this instantaneous impact would be missing the whole point of Morpho design. Take USDC as an example: the different USDC markets are highly connected. Liquidity in the markets comes from vaults that supply to multiple USDC markets, reaggregating the overall liquidity. These vaults actively move liquidity between the different markets to provide the best rate to their depositors. A rate increase on one market is a yield opportunity that will be quickly seized by vaults moving liquidity into that market, until the rate returns to normal levels, making the rate spike in that market very temporary.

Due to Morpho's multi-market design, temporary rate changes in a single market do not reliably predict future rates in that market.

For this reason, the Morpho interface displays the 1D Average Rate, which provides a more accurate representation of the actual borrow and supply rates users experience.

How it reflects on the Morpho Interface

When a market event (such as borrowing or withdrawal) occurs, it increases the utilization rate, which raises the market's borrow rate. However, curators quickly correct this spike by reallocating assets to the market, thereby decreasing both the utilization rate and interest rate.

Instantaneous rate

In the above example, while the instantaneous rate had a first temporary spikes above 6%, the daily average:

Didn’t go above 3.38%

1D Average Rate
Quickly came back to 2.63%

1D Average Rate

Showing a borrow rate of 6.27% would be misleading since this spike was quickly eliminated through arbitrage.

For this reason, the Morpho Interface displays the 1D Borrow APY by default, as it more accurately reflects the actual rates users experience.

For information purpose, the instantaneous rate is still visible at market level.

Warnings in the Morpho Interface

In Morpho, each parameter is selected at market creation and persists in perpetuity. Or, in other words, are immutable. The LLTV and interest rate model must be chosen from a set of options approved by Morpho Governance.

Once a market is created, users can either lend/borrow assets to/from it with certainty that:

It will persist as long as Ethereum, Base or any other network exists.
The parameters of the market will never change.

As a reminder, a market is composed of 5 parameters:

Collateral Asset,
Loan Asset,
Liquidation-Loan-To-Value,
Oracle,
Interest Rate Model.

You may see Info Labels or Token Warnings while using and navigating throughout the Morpho Interface. These warnings are to alert you to the potentially heightened risk in using specific markets, vaults, oracles or tokens.

How are Interface Warnings determined?

There are 3 existing warning levels:

🔴 RED: Any collateral asset, loan asset, deposit asset, oracle, vault curator that does not fit the listing criteria (seen below) will require a user to opt into interacting with that aspect of Morpho.
🟡 YELLOW: This level of warning is a “soft warning” that alerts a user to a potential abnormality, but does not require the user to “opt in” to the action.
Not available: Manually curated list created by Morpho Association will block tokens that violate trademarks, that have proven to be scams, or otherwise based on legal considerations.

The table below is explicitly explaining some reasons why warning level may appear on:

Morpho

Label	Criteria	Levels
unrecognized_collateral_asset	The collateral asset used in the market is not a part of our recognized token list.	🔴
unrecognized_loan_asset	The loan asset used in the market is not a part of our recognized token list.	🔴
unrecognized_oracle	The oracle asset used in the market has not been added to our whitelist.	🔴
unrecognized_oracle_feed	This market oracle has feed(s) that are not part of our recognized feeds list.	🔴
bad_debt_unrealized	This market has significant unrealized bad debt (>25 BPS total supply)	🔴
bad_debt_unrealized	This market has some unrealized bad debt (>$10k)	🟡
bad_debt_realized	This market has some realized bad debt (>10 BPS of total supply)	🟡
hardcoded_oracle_feed	This market is using a hardcoded value in its oracle.	🟡
unrecognized_lender	This market isn’t used in a vault where the curators have >$200k of assets under management.	🟡
low_liquidity	This market has less than $200k supplied to it.	🟡
unsafe_vault_as_collateral_asset	Market is using a Morpho Vault as collateral asset which has at least one minor (yellow) warning	🟡
unsafe_vault_as_collateral_asset	Market is using a Morpho Vault as collateral asset which has at least one major (red) warning	🔴
incompatible_oracle_feeds	The market is using oracle feeds which do not match with each other.	🔴
incorrect_collateral_exchange_rate	The market is using the exchange rate from a token different from the collateral one.	🔴
incorrect_loan_exchange_rate	The market is using the exchange rate from a token different from the loan one.	🔴
not_whitelisted	There is no known vault that is supplying into this vault.	🔴

Morpho Vaults

Label	Criteria	Levels
unrecognized_market	The vault has an allocation on a market that has at least one critical warning.	🟡
unrecognized_deposit_asset	The asset to deposit into this vault is not recognized.	🔴
unrecognized_vault_curator	The curator has less than $200k AUM across all of its vaults.	🔴

The token whitelist is available here and the oracle feed whitelist here.

Refer to this risk documentation to be sure you understand all the risks.

Policy

Asset blocking policy

The Morpho protocol is a self-executing, permissionless, decentralized series of smart contracts that cannot be changed by anyone except the DAO for given parameters.

Morpho Association maintains one of many ways to interact with the Protocol (the Morpho Interface for instance), and as a non-profit association based in France is subject to certain laws and regulations.

As such, there may be certain circumstances under which Morpho Association blocks access to certain markets and vaults through our the interface provided.

Criteria for Restricting Access on Morpho Association Interfaces

Morpho Association will block some components of the Protocol for the following reasons:
1. Risks to users. Morpho Association believes there are technical, fraud, or other risks that could significantly affect user safety.
2. Legal and regulatory requirements.
3. Fraud allegations.
Morpho Association will block individual or smart contract addresses that are subject to U.S. government sanctions or associated with certain types of illegal activity.
Morpho Association may block individual or smart contract addresses for any other reason at their discretion. For example, Morpho Association might have reason to believe that an address is associated with fraud, theft, or market manipulation, or that a smart contract has unacceptable security vulnerabilities.

Additional disclosures

Interface Warnings are created using information from third-party data providers. Morpho Association does not guarantee their accuracy and makes no representations or warranties about their relevance or currentness. The Morpho Protocol operates on a permissionless and decentralized basis, allowing Markets and Vaults to be established and administered by any third-party individual or entity. Any information provided by the Morpho Association on Vaults, Markets or any of their parameters does not constitute an endorsement of the Markets or Vaults and is provided solely for informational purposes. It does not represent an endorsement, recommendation, or any form of advice on how to engage with or utilize the Morpho Protocol.

Morpho Association Token Lists and Interface Warnings are not investment advice and should not be construed as such. Morpho Association strongly advise that before engaging in any financial, legal, technical, or other significant decisions related to the Morpho Protocol, you perform your own research (including, but not limited to, an analysis of the market or vault's structure, the assets involved, the parties responsible for its creation and management, and the potential risks and rewards associated with participation) and consult with an independent professional who is licensed and qualified in the relevant field. Such advice is crucial to ensure that your decisions are well-informed and take into account the specific nuances and complexities of your situation.

Slippage Considerations

Slippage Considerations in the Morpho Interface

When interacting with Morpho Markets and Morpho Vaults through the Morpho Interface, slippage protection is implemented to safeguard users against unexpected price movements between transaction submission and execution. Understanding how slippage is handled is crucial for both users and developers.

Types of Slippage Protection

Token Wrapping Operations
- Applied to: stETH → wstETH conversions, ERC4626 deposits (including Morpho Vaults deposits)
- Fixed maximum slippage: 3 basis points (0.03%)
Market Operations
- Formula:
$e^{4 \cdot r_{\text{target}} \cdot d} - 1$
- Where:
  - r_target is the target interest rate
  - d is the expected transaction duration (15 minutes for EOA, 45 minutes for Safe)
Vault Operations
- Formula:
$\left( 1 + r_{apy} \right)^{\frac{d}{yearInSeconds}} - 1$
- Where:
  - r_apy is the Annual Percentage Yield
  - d is the expected transaction duration (15 minutes for EOA, 45 minutes for Safe)
  - yearInSeconds is the number of seconds in a year

Shares Conversion and Slippage

In operations involving asset-to-share conversions (e.g. borrowing, repaying, Morpho Vaults deposits/withdrawals), the interface accounts for worst-case slippage scenarios. This is particularly important in the following cases:

Asset-Based Operations: Borrowing, partial repayments, Morpho Vaults deposits/partial withdrawals, supplying/withdrawing collateral
Shares-Based Operations: Maximum repayments, Morpho Vaults deposits in rehypothecation, maximum Morpho Vaults withdrawals

Note: Slippage can significantly impact transactions combining asset-based and shares-based operations for the same token.

Special Considerations for Morpho Vaults

Morpho Vaults ERC4626-compliant tokens are treated differently depending on the context:

As assets when supplied as collateral
As shares when supplied as deposits

In rehypothecation, they are treated as shares during Morpho Vaults Deposit and as assets during Supply Collateral.

At which level is it implemented?

These slippage calculations are automatically applied in relevant bundlerActions to protect users from adverse price movements during transaction processing.

For a more detailed explanation of how these slippage considerations are implemented in bundlerActions, please refer to the Bundlers TypeScript Tutorial.

Fallback App - fallback.morpho.org/

Purpose: Built for emergencies, this app prioritizes resilience over speed. This interface is for both lenders interacting with Morpho vaults and Borrowers interacting with Morpho Markets.

Key Features:

View your Morpho Markets & Morpho Vaults positions
Exit positions from Morpho Vaults and Morpho Markets

Version: Production

Prime

Curator App - curator.morpho.org

Purpose: Delivers specialized tools for vault curators to manage vault operations.

Key Features:

Create and deploy new vaults
Manage market listings and parameters
Configure vault settings and permissions
Set allocation caps and strategies

Version: Beta deployment with ongoing feature development

Implementation Note: For actions not yet implemented in the Curator App, use direct interaction with vault contracts through verified sources such as Etherscan. Always verify contract addresses before interaction.

Rewards App - rewards.morpho.org

Purpose: Manage and distribute rewards to participants in the Morpho ecosystem.

Key Features:

Track available rewards
Monitor distribution schedules
View historical reward allocations
Configure custom reward programs

Access Status: Production

Implementation Note: Access detailed information about current reward programs in the Morpho Forum and review implementation guides in the rewards documentation.

Other

Oracle Decoder - oracles.morpho.dev

Purpose: Aid oracle configurations to ensure price feed accuracy and security.

Key Features:

Decode oracle configurations
Verify price accuracy against reference sources
Test oracle configurations
Identify configuration issues

Version: Production

Implementation Note: Always verify oracle data configurations before deploying to production environments. Use this tool to:

Confirm correct asset pricing
Validate operational parameters
Test edge case scenarios

Liquidation App - liquidation.morpho.org

Purpose: Provides manual liquidation capabilities for unhealthy positions.

Key Features:

Identify liquidatable positions
Execute manual liquidations
Calculate liquidation profitability
Monitor position health metrics

Version: Production and requires supplemental automation

Implementation Note: Develop and deploy automated liquidation bots for production environments. The liquidation app serves primarily as a backup mechanism when bots fail or for testing purposes.