ℹ️ What is Morpho? | $MORPHO
Morpho is a decentralized credit/loan protocol (DeFi lending protocol) that operates on the Ethereum and Base networks.
The central idea is to optimize the rates for both lenders and borrowers, through a peer-to-peer mechanism combined with underlying liquidity reserves.
Additionally, it allows developers to create isolated markets (custom markets) with different parameters: collateral, interest models, liquidation thresholds, etc.
🪙 MORPHO Token: governance, structure, and functions
The MORPHO token is the governance token of the Morpho protocol: holders can vote on DAO decisions, protocol improvements, market parameters, etc.
It has a “legacy” version and a “wrapped” version that enables on-chain voting functionality. Users must convert from legacy to wrapped if they want full participation in governance.
The maximum supply is 1 billion MORPHO.
Initial distribution: according to the official documentation, part of the tokens are allocated to the DAO, users (rewards), strategic partners, team, etc., with different vesting/blocking schedules.
📊 Market data & listing
On Binance, MORPHO is listed with the pair MORPHO/USDT as a perpetual contract (futures) on Binance Futures.
⚠️ Risks / things to consider
Although Morpho seeks advantages over traditional protocols (for example Aave, Compound), it remains a DeFi protocol with inherent risks: bugs, exploits, contract failures, frontend vulnerabilities, etc.
The “wrapped vs legacy” token phase can cause confusion or errors if someone interacts with the wrong version of the token.
Liquidity and trading volume in new markets can be more volatile.
Governance decisions can greatly affect the direction of the protocol, especially since the token has a control function.