Recently, many crypto users have noticed a big drop in Morpho lending rewards. The new rate being offered is now around 5.75%, but after the platform’s performance fee (about 25%) is applied, the actual return comes down to roughly 4.3%. This change has raised questions about whether it’s still worth using #Morpho lending for stable returns — especially when other, lower-risk options offer similar rates.
What Changed in Morpho Lending
Previously, @Morpho Labs 🦋 offered additional reward boosts that made lending more attractive. However, it appears that these extra rewards have now been reduced or removed completely. Without these boosts, the overall lending rate has naturally decreased.
This adjustment seems to be part of a planned update by the platform to create more stability and sustainability in the long run. While this may help maintain a balanced system, it also means that users are now receiving smaller returns compared to before.
Why It Matters for Lenders
For anyone lending crypto through Morpho, the most important thing is understanding the real (net) return after fees. A 4.3% annual yield might still look okay, but when compared to other simple reward options available in the market, the difference is not very large — especially if you consider the added risks that come with decentralized lending.
$MORPHO lending, like other DeFi systems, depends on smart contracts, liquidity conditions, and network activity. Because of this, returns can change and are not guaranteed. So, while the rewards might go up again in the future, there’s also a chance they could fall further depending on market trends and updates made by the platform.
Key Points for New Users
If you’re new to crypto lending, here are some simple points to keep in mind:
1. Always check the net return after all fees and deductions.
2. Compare lending rewards with other available options that might have lower risk.
3. Understand the risks — DeFi lending can offer higher returns, but it also carries exposure to market volatility and technical risks.
4. Start small and observe how rewards change over time before committing larger amounts.
