Morpho Protocol (formerly known as Morpho Blue) is a decentralized lending protocol developed based on Compound and Aave. The project provides tools to optimize lending pool solutions, enhancing capital efficiency and creating seamless connections between lenders and borrowers.
By leveraging modern blockchain technologies, the platform improves lending rates while maintaining strong liquidity. This approach enhances liquidation capabilities and minimizes risks that could negatively impact the network. The protocol uses immutable smart contracts to ensure transparency and reliability.
Morpho Protocol has been audited for security by nine independent firms, including Spearbit, Pessimistic, Omniscia, and Runtime Verification, ensuring system-wide security. Additionally, multiple security mechanisms have been implemented to deliver safe and reliable products for investors.
The project currently manages a total supply of over $3 billion, with more than $1.1 billion successfully lent. The protocol has undergone two major development phases, resulting in two independent versions: Morpho Optimizers and Morpho Blue.
The project was developed by Morpho Labs, a team of experienced blockchain experts. It is supported by prominent investment funds such as Pantera, a16z crypto, Coinbase, and Fenbushi.
On June 5, the Morpho Association proposed a scalable and neutral model to distribute MORPHO rewards on Morpho Blue using a new framework. Rewards are expected to be distributed at a uniform rate to suppliers on Morpho Blue and borrowers. This initiative has been widely embraced by investors, who see it as a groundbreaking step in the project's development trajectory.
