It operates on a simple yet effective principle: it connects lenders and borrowers directly when possible, ensuring that both parties get better terms.
How does it work?
· When you want to lend your assets, the system tries to find a borrower that matches your terms
· If no immediate match is found, your funds go to protocols like Aave or Compound to earn a yield
· The result: Your money is always working, and never stays idle
Why is it different?
· Higher returns for lenders due to reduced margins
· Lower costs for borrowers thanks to direct matching
· Additional security through reliance on proven protocols
· Full control over assets at all times
For lenders:
· Lend your digital assets more efficiently
· Improved returns through smart matching mechanism
· Your money remains productive even without direct borrowers
For borrowers:
· Get loans at lower interest rates
· Use your assets as collateral for borrowing
· Flexibility and ease of access to liquidity
Strengths:
· Combines P2P efficiency with the security of major protocols
· A simple interface suitable for beginners and professionals
· Full transparency through blockchain records
· No need to give up control of your money
Important tips:
· Always maintain a safety margin in loans
· Diversification of investments across multiple assets
· Understand market conditions and risks before participating
Morpho represents an important evolution in DeFi, making lending more efficient and fair for everyone.
