Create a Market

This tutorial guides you through the process of creating and configuring a market in your Morpho vault.

Deploying a Market via Etherscan

Jump on the Morpho contract

See the address section.

E.g: Ethereum mainnet address is 0xbbbbbbbbbb9cc5e90e3b3af64bdaf62c37eeffcb

Fill all attributes

Jump on the createMarket function

loanToken: paste the address of the loan token,
collateralToken: paste the address of the collateral token,
oracle: paste the oracle address,
irm: paste the Interest Rate Model address,
lltv: the LLTV is defined with 18 decimals. 1e18 represents an LLTV of 100% (which is not enabled) and 945000000000000000 thus represents 94.5%.

Important points

Below is a short list of things to have in mind when creating a new market:

Governance-Approved LLTV

The LLTV a market creator is expecting to use has to be enabled. At first, the following LLTVs have been governance-approved:

LLTV (%)	Solidity Values (scaled by 1e18)
0	0
38.5	385000000000000000
62.5	625000000000000000
77.0	770000000000000000
86.0	860000000000000000
91.5	915000000000000000
94.5	945000000000000000
96.5	965000000000000000
98.0	980000000000000000

Vault as Asset

If you consider using a vault as loan or collateral token, please read the section below about Vault as Asset

Prevent Zero Utilization Rate Decay at Deployment

Issue: At deployment, a market starts with 0% utilization, which causes interest rates to quickly decay to extremely low levels, creating a poor user experience.
Solution: Add $1 of supply and borrow $0.90 immediately after market creation to establish 90% utilization (matching the Adaptive Curve IRM target). This prevents rate decay and ensures market stability from the start.
Best practice: Batch the market creation with supply and borrow transactions to achieve your desired utilization target. While 90% is recommended for the default IRM, other targets may be appropriate depending on your specific rate goals.
Warning: Without this intervention, markets intended for future use may already have extremely low rates by the time users start interacting with them, requiring significant time to return to reasonable levels.

Sign the transaction

You are done.

Idle markets

Idle markets on Morpho are markets where funds can not be borrowed. This liquidity earns no yield from borrowers but can be used as an immediately available buffer for withdrawals. Idle markets are used by curators in liquidity curation for Morpho Vaults V1.

To create an idle market, one has to reproduce the same steps than for an any market, except that the only variable field is the loanToken one, all other fields are using the 0 address or 0.

Here is an example from the USDC idle market on Ethereum (0x54efdee08e272e929034a8f26f7ca34b1ebe364b275391169b28c6d7db24dbc8):

loanToken: 0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48
collateralToken: 0x0000000000000000000000000000000000000000
oracle: 0x0000000000000000000000000000000000000000
irm: 0x0000000000000000000000000000000000000000
lltv: 0

Before creating an idle market for a specific asset on a specific chain, make sure the market does not exist already (see Market ID Generator below).

Important Note

Market Id Retrieval

When creating a market, a CreateMarket event is emitted with the market id:

CreateMarket event showing the market ID

To retrieve the market parameters from this id:

Navigate to the Morpho contract on Etherscan

Go to the "Read Contract" tab

Find the `idToMarketParams` function

Paste the `id` into the input field and execute

Example: Using the id: 0xb323495f7e4148be5643a4ea4a8221eef163e4bccfdedc2a6f4696baacbc86cc

Resource: Market ID Generator

Use this tool to generate the unique market ID from your market parameters:

Loan Token Address

Collateral Token Address

Oracle Address

IRM Address

LLTV (in wei, e.g., 915000000000000000 for 91.5%)