Curator
A Curator in the Morpho ecosystem is an entity or individuals who aims to optimize the risk-adjusted returns for depositors based on a given strategy.
Curators are specifically responsible for the strategic curation of vaults, making key decisions about which markets to include, how capital is allocated, and how risk is curated within the vault structure. Their expertise directly impacts vault performance and security.
Role of a Curator
- Market Selection & Management: Evaluates and selects appropriate markets based on risk-reward profiles, actively manages caps, and maintains market health.
- Rate Optimization: Actively manages interest rates between markets to maintain competitive yields for depositors while attracting borrowers.
- Liquidity Allocations: Strategically allocates capital across markets to balance yield optimization with risk management, configures supply and withdrawal queues, and uses the Public Allocator to maximize capital efficiency.
- Risk Monitoring: Continuously assesses collateral quality, oracle reliability, liquidation feasibility, and on-chain liquidity to protect against bad debt events.
- Communication: Maintains transparency with users about vault strategies, risk parameters, and operational decisions.
Vault Management Structure
It's important to note that multiple roles are assigned at the vault level, each with distinct responsibilities that support the curator's strategy. These roles include Owner, Curator, Guardian, and Allocator, each with specific permissions and functions within the vault management structure.
For a detailed breakdown of these roles and their specific permissions, please refer to the Roles documentation.