Morpho Public Allocator

Integrating the Public Allocator (PA) into your application means implementing the infrastructure that allows users to reallocate liquidity into a market of your choice.

When borrowing from a Morpho Market, users may find that the liquidity they need is distributed across multiple markets. Rather than requiring users to borrow from several different markets to reach their desired loan amount, the Public Allocator automatically handles this complexity. It seamlessly moves liquidity from other markets to the target market, making all funds available through a single borrowing transaction. This process happens behind the scenes and is completely transparent to the user.

It allows borrowers to access deep liquidity by automatically reallocating unused liquidity to the target market. Here is a video that explains how the Public Allocator works: