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Description: Morpho is a lending protocol running on the EVM
ethereum (3923) web3 (1238) defi (991)
Pool-based protocols like Compound or Aave keep utilization of the capital low, so users can withdraw or borrow funds at any time. This causes a wide spread between borrow and lend APYs, leading to mediocre rates for both parties.
When liquidity is matched peer-to-peer (P2P), instead of via a pool, the capital utilization rate is 100%, which means superior rates for both borrowers and lenders.
The fundamental limitation of P2P matching is that users can’t borrow or withdraw their funds whenever they want. Morpho Protocol changes this.
d&a partners | Avocats des entrepreneurs de la Tech et la blockchain