For discussion of Morpho Blue.
Morpho Blue is composed of two layers:
- a decentralized noncustodial protocol enabling the overcollateralized supplying and borrowing of Digital Assets (the “Morpho Blue Protocol”). It is an onchain trustless primitive. It implements independent supply markets, which are simple supply pools with only one collateral asset and one loan asset, priced through an oracle. Interest rate is given by an immutable interest rate model (“IRM”). Each pool is characterized by a predefined LLTV. Markets can be created by anyone with any ERC20 assets and oracles, with an LLTV and IRM chosen in a set predefined by governance. Interacting directly with the Morpho Blue Protocol is best suited for highly sophisticated lenders or low-level protocol integrators.
- a protocol for noncustodial risk management, built on top of the Morpho Blue Protocol (the “MetaMorpho Protocol”). Interacting with the MetaMorpho Protocol provides passive and risk-adjusted User experience.
More details available at: