Morpho: the peer-to-peer layer redefining DeFi lending

Most protocols rely on pooled lending — efficient, but not optimal.

Morpho changes this by adding a peer-to-peer layer on top of Aave and Compound.

When there’s a match between lender and borrower, both sides get better rates.

When there isn’t, liquidity still flows through the base pool.

That’s higher capital efficiency, without additional risk exposure.

How it works

- P2P matching engine connects users directly

- Unmatched liquidity falls back to Aave/Compound

- The system computes a dynamic “p2p rate” based on supply and demand

- Immutable, audited smart contracts handle logic and accounting

For developers

Morpho provides SDKs, APIs, and subgraphs for direct integrations.

Vaults, fixed-rate lending, and ERC-4626 modules make it easy to build on top of the protocol.

Security

Audited by OpenZeppelin and Spearbit.

Active bug-bounty program on Immunefi.

Tokenomics

Total supply: 1B $MORPHO

Unlocked: ~25%

Next major unlock: Nov 21, 2025 (~$1.6B, 26 days left)

Current insider allocation: ~90% (95% final)

Why it matters

Morpho optimizes what already works — instead of competing with existing protocols, it enhances them.

As rates stabilize and DeFi seeks higher efficiency, this model may become the standard layer for on-chain lending.

Site: https://morpho.org
Data: https://defillama.com/unlocks/morpho

#Morpho @Morpho Labs 🦋 $MORPHO