@Morpho Labs 🦋 What is Morpho? How is it different from Aave?🐰🏦
Many people refer to both Morpho and Aave as "lending protocols," but the underlying organizations are quite different. Now may be one of the few opportunities for ordinary people to make money; below, I will teach you how to make money step by step.💰📈
1. Differences from traditional DeFi lending protocols ⚡️
Aave (shared large pool)🏦
Assets are concentrated in a shared pool, and parameters (interest rate curves/risk control thresholds, etc.) are determined uniformly by governance.
✅ Mature, large depth, intuitive; ❌ Lack of personalization, slower global governance changes.
Morpho (Blue + Vaults)
Isolated markets + vault manager: different borrowing coins/collateral/oracles/interest rate models are mutually isolated.
The vault manager routes funds to more suitable markets; earns interest and incentives, deducts management fees and gives you the rest.
- ✅ High degree of customization, potentially higher net returns; ❌ Additional layer of vault manager strategy and contract risks.
2. Analyzing returns visually: How does 9.69% come about? 📈
Taking Hyperithm USDC in the picture as an example:
Native APY: 10.39% → Interest paid by borrowers (utilization rate ↑ → interest rate ↑).
Morpho incentives: +0.33% → Additional incentives from the protocol/market (points/tokens/cashbacks),
Performance fee: 10% ≈ -1.03% → Based on earnings × fee rate
Net APY = 10.39% + 0.33% − 1.03% = 9.69% ✅
💵 Intuitive conversion:
10,000 USDC → About $969 per year｜About $80.8 per month｜About $2.66 per day, just enough for a hearty pig trotter meal!
3. How does the vault manager help you earn? 🛠️
1. Deposit USDC (like Hyperithm USDC).
2. The vault allocates funds to one or more isolated markets of Morpho.
3. Generate loans → interest accrual; sometimes receive incentives/points/airdrops** 🎁.
4. The manager reinvests/rebalances/claims incentives, improving fund utilization and compounding efficiency.
5. A performance fee is charged proportionally on the earnings (10% in the picture), and the rest is your Net APY. ✅
From the final results, it appears that Morpho's lending returns are currently twice those of Aave.
Comment below: Would you choose Aave or try Morpho? 🤔🔥
Do you think Morpho is safe? Will it de-peg and lose money like USDe?
Morpho has already launched on Binance; will it be the next Dogecoin?
Feel free to leave comments and exchange ideas! 🗣️💬
