✅ What Morpho is
Morpho is a decentralized, non-custodial lending protocol built on Ethereum and other EVM-compatible chains.
Its key innovation: a peer-to-peer (P2P) lending overlay on top of existing pools (like Aave / Compound) — meaning lenders and borrowers can be matched directly when possible, improving efficiency.
When direct P2P matches are not available, Morpho falls back on underlying liquidity pools. This dual-layer design gives more flexibility.
Multi-chain support: deployed on Ethereum mainnet plus chains such as Base and Optimism.
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🧮 Token & Tokenomics (MORPHO token)
Max total supply: 1 billion (1,000,000,000) MORPHO tokens.
Circulating supply: As of some measurements ~235 million unlocked; with further locked/vesting amounts remaining.
Distribution (according to docs):
~35.4% allocated for Morpho governance/community.
~4.9% to users & launch pools.
Other allocations: strategic partners, founders, ecosystem development; vesting schedules in place.
Token utility:
Governance: MORPHO holders vote on protocol upgrades, risk parameters, treasury decisions.
Wrapped vs legacy token: The project upgraded to a “wrapped MORPHO” format for on-chain voting/tracking and cross-chain interoperability.
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📈 Metrics & Growth / Fundamentals
Total Value Locked (TVL): The protocol has reported multi-billion dollar TVL (billions of USD in assets) across chains. For example, one article cites ~$6.7 billion TVL as of August 2025.
On the Base chain alone, Morpho’s TVL reportedly climbed from ~$60 million (July 2024) to ~$1.8 billion by 2025.
Efficiency advantage: The peer-to-peer matching mechanism is said to reduce spread between borrowing/lending rates (one estimate: up to ~30% reduction versus pure pool models).
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🛠️ Technology & Features
Users can deposit assets, borrow assets, or create/participate in markets with customizable parameters (collateral type, debt asset, interest model) via “Morpho Markets”.
“Vaults”: curated yield-optimizing vaults where third-party curators choose strategies across Morpho Markets.
Cross-chain expansion is on road-map; modular architecture (named “Morpho Blue” in some docs) supports marketplace creation and extensibility.
