Benefits of using Morpho Vaults

Morpho Vaults (formerly known as MetaMorpho) serve two types of users. The MetaMorpho Factory allows risk experts to spin up noncustodial lending vaults, and Morpho Vaults provide users with a simpler way to lend on Morpho (formerly known as Morpho Blue).

For Lenders

Morpho Vaults offer users the same passive experience as traditional lending pools with the following notable improvements.

Curated Risk Profiles

Morpho Vaults offer a range of vaults with various risk levels instead of the traditional one-size-fits-all approach. This allows users to choose vaults that align with their general risk preferences/appetite. In traditional lending, pools are exposed to the riskiest asset in the pool. With Morpho Vaults, a lender can avoid exposure to long-tail assets by depositing in a vault that only lends against blue chip collateral.

Better Yields

Earn better yields from Morpho’s capital-efficient markets. Interest earned by suppliers are optimized by dynamically rebalancing across multiple markets with the best risk-return ratio.

Transparent

Morpho Vaults are noncustodial with immutable logic and verifiable onchain allocations. Risk curators are encouraged to share their processes with users, giving them more insight into the risk models and computations.

For Risk Experts/Protocols

Morpho Vaults pave the way for a new approach to risk management that is better for both risk experts and users.

Service users, not a DAO

Morpho Vaults enable risk protocols and experts to serve users directly instead of consulting for DAOs. This approach is a more scalable business model and is better aligned with users.

Permissionless infrastructure

Requires no code and is audited, lowering barriers to entry. Risk experts can create revenue-generating products with limited costs and effort. Benefit from Morpho SDK, front-end, rewards distribution, and other tooling.