DeFi still behaves like a single-layer experiment: pooled assets, blended risk, and front-ends that mask systemic fragility. Morpho is rebuilding that logic. Its vault model separates every credit environment into its own risk surface—its own LLTV, interest curve, and oracle path. When stress appears, it stays local instead of contaminating the entire protocol.
This architecture matters more than ever. As liquidity tightens and volatility returns, protocols relying on shared models will struggle to maintain integrity. Institutions don’t deploy into ecosystems that depend on luck; they deploy into systems that isolate failure.
Morpho reframes lending from pooled speculation to engineered structure. The future of DeFi belongs to designs that fail predictably—and rarely.
@Morpho Labs 🦋 #Morpho $MORPHO
