Deep Liquidity

Morpho is as liquid as the underlying lending pool. If you can immediately borrow billions on AaveV2 (resp. AaveV3), you will be able to immediately withdraw/borrow billions on Morpho’s AaveV2 Optimizer (resp. AaveV3 Optimizer).

This feature enables any protocol with considerable liquidity constraints, i.e., they want to withdraw/borrow large amounts at any time, to use Morpho.

Example: Some decentralized stablecoin protocols build strategies for their collateral to work. However, those strategies must be very liquid so that the protocol can redeem the tokens and ensure the peg of the assets. That is why many of those protocols build strategies on Compound or Aave, famous for being highly liquid. With Morpho Optimizers, stablecoin protocols optimize yield generation while preserving the same liquidity as a lending pool: the protocol can instantly withdraw collateral worth hundreds of millions.