In traditional lending pools, there's a hidden conflict: Lenders and borrowers are pitted against the entire pool. Your yield is diluted by the crowd.

This is the "Tragedy of the Commons" – shared resources get exploited inefficiently.

Morpho's solution? Direct alignment.
By matching lenders and borrowers peer-to-peer, it creates a win-win. The borrower gets a better rate, the lender gets a better yield. The value isn't lost to the "commons" (the pool); it's captured by the matched peers.

This isn't just a technical upgrade; it's a philosophical one. Morpho aligns incentives where pools create conflict.

#GameTheory #Economics #defi #Morpho @Morpho Labs 🦋 $MORPHO