General Information
This page gathers the main information related to Morpho AaveV3 Optimizer, the third instance of Morpho.
Introduction
Morpho AaveV3 Optimizer is very similar to the current versions of Morpho already deployed on Compound V2 and Aave V2, except for a few features and new design choices to overcome Aave V3’s specific constraints.
To better understand how Morpho AaveV3 Optimizer works, you will need to be familiar either Morpho AaveV2 Optimizer or Morpho CompoundV2 Optimizer. Resources on both can be found on the Homepage.
New features
- Efficiency Mode
- Account Management
- Gasless token approvals with PERMIT2
- New & Improved Matching Engine
Design Changes
The yellow paper explains the mechanism used by Morpho AaveV2 Optimizer. However, with the introduction of new supply and borrow caps in Aave V3, different design choices had to be made to overcome the liquidity constraints that Morpho could face.
Thus, there are new mechanisms in Morpho AaveV3 Optimizer:
- Supply and collateral split
- Idle supply
The next section will provide additional details.