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Morpho Vaults

Morpho Vaults is a protocol for permissionless lending vaults built on top of the Morpho Markets.

What is a Morpho Vault?

A Morpho Vault has one loan asset and can allocate deposits to multiple Morpho markets. Users can deposit into a vault to start earning passive yield from interest paid by borrowers. Vaults feature automated risk management, actively curating risk exposure for all deposited assets so users don't need to make these decisions themselves. Users maintain full control over their assets, can monitor the vault's state at any time, and withdraw their liquidity at their discretion.

Key Features

  • ERC-4626 Compatibility: Morpho Vaults implement the ERC-4626 "Tokenized Vault" standard, providing a consistent and interoperable way to interact with lending positions across the DeFi ecosystem.

  • Simplified Yield Generation: Vaults abstract away the complexity of managing positions across multiple lending markets, allowing users to deposit once and earn optimized yields.

  • Automated Risk Management: Each vault is managed by specialized roles that handle market selection, risk assessment, and capital allocation to protect depositors.

  • Permissionless Liquidity: Users can deposit and withdraw at any time, with no lock-up periods, subject only to the available liquidity on the underlying markets.

  • Transparent Operations: All vault actions and allocations are visible on-chain, with role-based management to ensure proper oversight and risk control.

Morpho Vaults serve as an accessible entry point for users who want to participate in DeFi lending markets without directly managing the complexities of individual positions, risk assessment, and market selection.