Glossary
Morpho
An Ethereum lending protocol built around isolated, immutable markets — each market has one collateral asset, one borrowable, and fixed risk parameters.
Morpho Blue, launched in 2024, rebuilt the on-chain lending stack around isolated, immutable markets. Each market is defined by a single collateral asset, a single loan asset, an oracle, an interest rate model, and a loan-to-value — set once at creation and never changed.
Risk is local to a market rather than shared across a single pooled balance sheet (as in Aave or Compound). Strategy layers ("MetaMorpho vaults") deposit across many markets to give end users a familiar yield product on top of the primitive.