what's morpho labs?
Morpho is a decentralized lending protocol built on Ethereum that optimizes capital efficiency for lenders and borrowers. It extends base layer protocols like Aave and Compound by introducing peer-to-peer matching for improved rates while maintaining the same liquidity and risk profiles. The protocol consists of Morpho Blue, a permissionless market for creating isolated lending markets with custom collateral and loan assets, and Morpho Optimizers that automatically route funds to the best yields.Key features include modular architecture for developers to build custom vaults and applications, support for real-world assets (RWAs) through integrations with tokenization platforms, and tools like Pre-Liquidations for proactive loan management. Morpho emphasizes decentralization, with governance transitioning to the Morpho Association, and focuses on institutional-grade DeFi infrastructure for global financial access.
Morpho integrates Kaia/SuperEarn for vaults; Base loans surpass $1B, 10x YoY.
contract
ethereum
katana
base
arbitrum-one
Integrated with Kaia Chain and SuperEarn, whose yield engine allocates to Morpho's Prime, Core (Balanced), and Frontier vaults on Ethereum.
Active loans on Base surpassed $1 billion, representing approximately 10x year-over-year growth.
Featured in a partnership announcement by thedefiedge discussing how Summer Finance adjusts market caps on Morpho USDC/USDT markets based on liquidity and stability conditions.
Received $300K deposit from 0xAlphaping into Stake DAO Morpho markets on January 8, 2026.
Provides high-performance blockchain data services to Deutsche Telekom and DeFi protocols including Morpho Labs and PancakeSwap.
Offers negative borrow rates on Arbitrum for borrowing USDT using syrupUSDC, USDAI, wstETH, or SUSDS as collateral.
Fasanara Capital deposited 6,569 ETH (valued at $19.72M) into Morpho and borrowed 13M USDC against it over a two-day period ending December 23, 2025.
Nominated for "Best In Yield" award at The Rollup awards ceremony scheduled for December 30th, 2025.
Experienced a rise in TVL during the week ending December 20, 2025.
Ranked among the top 5 daily crypto gainers on December 19, 2025.
Recommended as a good reallocation choice among Base tokens based on criteria including protocol usage, long-term building potential, revenue generation, and competitive positioning.
Rose 10% in price on December 17, 2025, leading top movers in the crypto market.
Two Pendle PT tokens are loopable on Morpho: PT-thBILL (USDC) offering 9.01% on Arbitrum and PT-iUSD offering 7.36% on Ethereum, with February 19 expiration.
Morpho frontend uses a whitelist system for vault indexing, with only whitelisted vaults appearing on the frontend and most yield discovery sites, while non-whitelisted vaults remain invisible despite potentially achieving significant TVL.
Morpho V2 will enable onchain undercollateralized loans through a free market approach that allows the market to price various repayment commitments including collateral, identity, reputation, and scores.
The protocol outsources products to vaults that handle risk management and charge performance fees while controlling only the fee switch, with the Morpho Association allocating most resources to building infrastructure and SDKs instead of operating vaults.
Avon, a Morpho product for borrowers, faces severe liquidity fragmentation with only a handful of pools containing most liquidity across loan-collateral pairs even when accounting for multiple chains, with concerns raised about the lender side remaining unsolved.
Morpho achieves 900,000 users through World App mini app deployment.
DeFiSaver integrates Steakhouse/Morpho vaults into their Smart Savings dashboard alongside Yearn V3, Sky, and Spark protocols.
Data from Avantgarde Finance reveals that some of the lowest risk Morpho vaults are 70% illiquid, with exits being slow, expensive, or queue-bound despite instant deposits.
Morpho Association, a shareholder-free entity, owns all Morpho IP, applications, and social accounts, with the project operating exclusively on tokens without equity ownership.
Integration with Reown and Safe wallets now enables login with hundreds of wallet options, allowing institutions and fund managers to manage positions directly.
Gondorfi launches DeFi layer for Polymarket positions built on Morpho protocol, with Beta now live on Polygon allowing users to borrow up to 50% LTV against positions or lend USDC for up to 30% APY.
Morpho has integrated with Sei Network, enabling composability for tokenized private credit alongside native USDC, PYUSD, and lending markets on a chain targeting institutional RWA adoption.
Pendle Principal Tokens of USDai and CUSD can now be used as collateral on Morpho on Unichain, unlocking additional liquidity.
SolidYield crypto neobank integrates Morpho as part of its automated yield strategy infrastructure alongside Pendle for automatic balance yield generation.
Historic share price tracking for vaults now available on the Morpho App.
Analysis of 20 recent Binance listings includes Morpho with under 1% allocation, zero revenue to Binance, and user-focused distribution through Launchpool and airdrops.
Yearn-curated OEV-boosted USDC vault on Morpho achieves A rating alongside Stakehouse and Gauntlet Vaults.
Users can borrow against Polymarket positions through Morpho's infrastructure.
Credora Network risk scores now available in Morpho App's Risk tab for depositor risk assessment. Markets offer 29.1% delta neutral ETH yields on Base through cbETH:WETH pairs with automatic allocation.
BTC.b deployed on Morpho on Stable network rewards 10,000 LUX per BTC.b for the first 21 days since Stable's mainnet launch.
Resolv season 4 farming program goes live today with 2.5% token allocation through April 9, 2026, featuring leveraged positions on Morpho (up to 10x) alongside 120,000 ETHFI liquid partner rewards.
Stable payment network powered by Morpho's lending infrastructure has institutional traction from PayPal and Bitfinex.
Coinbase crypto-backed loans powered by Morpho allow borrowing up to $5M using BTC or $1M using ETH at 4-8% rates with instant origination and no credit checks. Legend platform integrates Morpho for unified DeFi earning and borrowing interface.
Wirex integrates Morpho, allowing business account customers to earn institutional-grade stablecoin yield through Gauntlet-curated vaults with one-click opt-in.
Morpho goes live on Stable platform, connecting hundreds of millions in payment liquidity to institutional-grade yield.
SolidYield, a new neobank offering Visa card spending, integrates with Morpho to automatically generate yields on users' stablecoin balances in the background.
The IMF vault on Morpho reached peak TVL of $260M in July 2025, became the largest holder of USDS with over $102M deposits, and implements token buybacks to fund new rewards campaigns after generating $1.8M in real yield to lenders.
Without token incentives, Morpho market APYs are described as "bleak," and WETH represents the highest loan deposit market rather than MON-related assets, with WMON ranking far down the list.
Katana uses Morpho Labs vaults curated by Gauntlet and Steakhouse Financial in its Vaultbridge system to generate yield from bridged USDC and ETH on Ethereum mainnet.
Yield compression occurs even in high-risk Morpho markets.
Fasanara's mf-ONE vault has $24m exposure to First Brands bankruptcy where $2.5b of $3b collateral was fraudulent, modeled by Steakhouse as 100% loss that keeps Morpho lenders solvent, while some borrowers are 4% from liquidation with another markdown expected.
On Arbitrum, Morpho handles $3.08 billion borrowed across 940 pools at 713.08% average APY while reporting negative $3.8 million earnings from incentive spending.
An exclusive deal between Morpho and Coinbase causes cbBTC loan rates of ~7% for Coinbase users compared to 4-5% elsewhere (more than 50% higher), raising potential antitrust law violation concerns.
Morpho Labs powers lending functionality on okutrade, enabling users to borrow USDC using tokenized uranium (xU3O8) as collateral on Etherlink, Tezos' EVM compatibility layer.
Smart Money accumulates MORPHO with top inflows during recent price drops.
Markets V2 will launch with deep liquidity on day one through Vaults V2, which allocate through a DAO-controlled registry that enables persistent liquidity across all protocol versions.
Users complain about losing entire deposits in Morpho vaults, claiming curator actions led to fund losses and demanding return of funds from MEVCapital.
Parafi Capital withdraws 400K MORPHO tokens (~$585K USD) from FalconX Global, following their receipt of 600K MORPHO (~$940K USD) 9 days earlier to a fresh wallet.
Obex Incubator creates curated vaults on Morpho for incubated yieldcoin projects.
21Shares announces two new ETPs: a MORPHO ETP and an ETHENA ETP.
EOA supplies show an increasing trend possibly driven by "monarch", and more vaults integrate directly with markets bypassing Morpho vaults.
Morpho identified in Smart Money rotation back into DeFi lending category alongside AAVE. Morpho deployed on Monad with presence in incentivized stablecoin pools representing part of approximately $90M TVL shared across multiple protocols.
Morpho integrates Redstone as oracle provider across many of its markets.
JPYC Japanese Yen stablecoin integration announced for Morpho. Morpho hosted its first Vault Summit at Devcon in November.
Almanak integrates Morpho as a money market for alUSD and allocates strategic liquidity to Morpho Blue Vaults curated by Gauntlet, Steakhouse, and Apostro.
Morpho and Aave together capture almost 70% of the entire stablecoin lending market.
Yearn Curated Morpho vaults remain safe with yETH/st-yETH not used as collateral on any markets.
MORPHO leads with ~$904K in smart money inflows this week.
Coinbase leverages Morpho for crypto-backed loans to accelerate financial utility.
Users who deposited in Morpho received 15k MON tokens in an airdrop distribution.
Morpho launches on Monad network offering 13.19% APY on AUSD stablecoin, incentivized by MON tokens.
The 6th largest market by size is the xUSD market on Plume network.
INFINIT Labs launches Prompt-to-DeFi platform in early December, integrating Morpho markets to enable AI agents to execute automated DeFi strategies.
Public figures increased $MORPHO holdings by 19% this week, with Justin Sun adding 35,000 tokens, while whale holdings remain unchanged.
Platform adds Japanese Yen through JPYC stablecoin integration to its global lending network.
Integration with Lombard's BTC.b launches on Katana chain alongside Sushi, with 330 BTC.b deposited onchain.
$MORPHO leads smart money netflows today with $904K in inflows and maintains $2.6M liquidity.
Chronicle Labs secures the Steakhouse AUSD vault on Morpho deployed on Monad network.
Steakhouse High Yield AUSD vault on Monad offers 33% APY from $MON and $AUSD incentives.
Morpho Steakhouse vault is live on Monad Mainnet and ranks among top protocols by stablecoin TVL on Day 2 of network launch.
New tracking feature enables monitoring of vault curators' deposits, interest rates, performance fees and individual vaults on Morpho.
Vault curators earn approximately $300k per week in performance fees. Monarch product deploys on Monad with Morpho token rewards coming soon.
Missing withdrawal functionality identified across Morpho chains, with withdrawals only processing on 5 chains despite deposits working normally.
Morpho deploys lending vaults on Sei Network for programmable private credit assets in partnership with major TradFi institutions including Apollo and BlackRock. Almanak Ecosystem integrates Morpho Blue Vaults as one of its yield generation protocols for the alUSD vault managing ~$124M TVL.
Morpho V2 rollout is underway, announced in conjunction with official Monad integration.
Morpho deploys on Monad mainnet through Steakhouse Finance integration.
FractionAI launches "Stable Up" autonomous AI agents that integrate with Morpho (alongside Moonwell, Silo, Yearn, Euler, and Avantis) for automated stablecoin yield optimization and 24/7 allocation management.
Steakhouse Morpho vaults become the biggest USDC providers on Base lending markets, with users recommended to migrate to V2 version.
In 2025, Bitcoin-backed loans reach $1.5B collateral and $800M active loans, DeFi lending puts $350M+ USDC to work at 8%+ yield, with partner integrations including Spark, Ledger, Safe, TrustWallet, Moonwell, and Seamless.
A depositor bailout discussion is underway following the Stream Finance collapse, with community debate over whether affected depositors should receive compensation, and recommendations emerging for the protocol to distance itself from branded front-ends to manage reputational risk.
Spark partners with Morpho and Coinbase to provide automated liquidity services for ETH borrowing through the Spark Liquidity Layer.
Optimism goes live on Oku trade with an incentive program: users receive $200 in OP tokens for depositing $500 into Morpho vaults and holding for 60 days.
Stream Finance collapses in November 2025 causing approximately $285 million in cascading losses, with multiple Morpho curators concentrated in one over-leveraged counterparty (7.6x leverage with only $1.9M actual collateral). The incident exposes systemic risks in Morpho's curator model including lack of accountability, anonymous operators charging 5-15% fees managing billions in user assets, absence of Proof of Reserve despite technical feasibility, and incentive misalignment where protocols prioritize TVL growth over risk management.
Coinbase launches ETH-backed loans through Morpho allowing up to $1 million in borrowing, as the BTC-backed product reaches $1.25 billion in loans against $1.38 billion in collateral.
Morpho borrowers on Katana receive vault bridge rewards from Yearn strategies on Ethereum across WETH/USDC, WBTC/USDC, yvvbUSDT/USDC, and yvvbETH/USDC pairs.
An exclusive partnership for cbBTC<>USDC loans benefits from Coinbase's onchain push with Base.
Morpho vaults handled recent liquidity stress with zero exposure and zero loss, while USDC Balanced supply increased 35% and supply APYs benefited from volatility.
Morpho v2 features publicly discussed including intent-based matching, peer-to-peer fixed-rate loans, single global order book, onchain compliance primitives, and cross-chain intent settlement. The re-leveraged $REKT position experiences a second liquidation overnight with holdings dropping back to 0.27%.
Following the $REKT liquidation cascade, a wallet immediately re-leverages by purchasing $REKT, using it as collateral to borrow USDS, and buying more $REKT, prompting investigation into whether the liquidation was an intentional attack.
BTC collateral grows to over 50% of total collateral value from under 20%, with usage shifting away from restaking and PT looping strategies.
Babylon Labs demonstrates borrowing USDC against native BTC on Ethereum Mainnet using Morpho protocol.
IMF protocol built on Morpho infrastructure experiences liquidation cascade involving $REKT memecoin, with leveraged positions nearly entirely wiped as collateral in Morpho contract drops from 5% to 0.25% of token supply during 70% price decline.
Protocol lacks supply caps in markets, creating risk that lenders can supply more than liquidity absorbs and guarantee bad debt by circumventing curator allocations at smart contract level.
Morpho accessible via Coinbase as part of consumer finance expansion.
Berachain launches Morpho fork curated by Re7 Capital with $13M in deposits, where sUSDe represents $9M of borrowed assets. Re7 Capital faces accusations of predatory behavior by squeezing sUSDe market borrowers.
BasisOS launches Agentic Fund of Funds that routes capital to Morpho vaults alongside other protocols for yield optimization.
Users exploit the reallocateTo function to manipulate rates, with smaller markets like uSUI showing dominance of reallocate-driven supply flow while larger markets like cbBTC remain less affected due to size.
New on-chain metrics dashboard goes live on Sanbase platform for tracking key metrics including Total Borrowed in USD, Active Addresses, and Vaults APY. Steakhouse Financial confirmed as 2nd biggest vault curator with 45 vaults holding approximately $1.2 billion in assets.