Morpho arrives at Instadapp! Morpho is a new generation of lending protocol built on existing protocols! It aims to drive efficiency in the lending markets.
Morpho is a unique protocol built on top of existing protocols like Compound and AAVE.
Morpho optimizes the interest rates users can achieve by directly connecting lenders and borrowers using these protocols. Morpho calls this their P2P rate!
You can think of Morpho as the matchmaker of your loans, and the guarantor is the lending protocol.
The best of both worlds
Lending protocols like AAVE and Compound offer amazing access and liquidity. You can borrow or supply funds to AAVE at any time. You can immediately withdraw your collateral if you pay off your loan quickly.
To offer this open type of market, the protocol has higher liquidity and also requires more collateralization, this also applies to the premiums charged on borrowers and the interest earned on suppliers.
Unfortunately, we exchange some capital efficiency for having this open and liquid market guarantee.
Morpho takes the guarantee and liquidity of these larger lending protocols and builds a matching system on top.
By matching borrowers and lenders directly, they offer both parties a rate that removes the extra premiums required by the underlying protocol. The underlying protocol can still be used whenever funds are unmatched, which also sets the rates.
Morpho just improves the efficiency of the rate. Borrowers pay less interest, and suppliers earn more! Morpho combines the best of DeFi with the best parts of Peer to Peer markets.
Is Morpho a No-Brainer?
Morpho’s unique approach makes it a compelling alternative to access AAVE and Compound.
In the worst-case scenario, your funds are not matched, so you pay the rates you would have paid if you used the protocols directly. However, in the best case, your loans or deposits will be matched for a part of the time and you will be getting a better overall APR rate secured by the same protocol you would have used anyway!
Morpho, by being built on these larger lending protocols, offers the same rates, liquidation parameters, and functionality. Morpho brings you the benefits of peer to peer finance with the guarantees of DeFi.
Morpho is now live on Instadapp!
You can utilize Morpho exactly as you do with Compound or AAVE, with access to Strategies and upcoming refinancing to make it even easier to jump to Morpho!
We think Morpho is a unique and extensible protocol that can offer a lot of increased APRs for users, improve the overall lending experience, and usher in more products that similarly will use DeFi monoliths like AAVE to build even better systems.
Learn more about Instadapp by following us on Twitter for regular updates and launches, get to know us closely, and ask us those hard questions (or just say hi) up front on Discord. Nonetheless, if you need to contact us, feel free to email us.