What is Morpho Protocol (MORPHO)? Complete set of cryptocurrency MORPH
Description of What is Morpho Protocol (MORPHO)? Complete set of cryptocurrency MORPH
Combining the efficiency of the Peer-to-Peer model with the liquidity of the Peer-to-Pool model, Morpho Protocol was born.
Peer-to-Pool borrowing protocols like Compound or Aave keep capital usage low to allow users to withdraw or borrow assets at any time. Lenders often have to share profits with many others, depending on the amount of assets they provide, while the interest that the borrower has to pay is quite high. All of these reduce the efficiency of the entire protocol.
Using the Peer-to-Peer model, liquidity is created between borrowers and lenders rather than in pools, raising capital utilization rates to 100%. This increases the lender's APY rate and lowers the borrower's APY rate, but is illiquid as users cannot withdraw or borrow assets anytime they want.
What is Morpho Protocol?
Morpho Protocol is a lending and borrowing protocol with a Peer-to-peer (P2P) model, operating on the Ethereum blockchain. Morpho Protocol was developed as a 2nd layer on top of other lending protocols like Aave and Compound , which optimizes borrowing and lending, keeps liquidity intact (allows withdrawal and borrowing at any time), keeps resources (mortgage factors, liquidation incentives, etc.) while generating better returns.
Although it was only launched on June 8, Morpho-Compound has attracted $100 million in liquidity as of July 18. Of which, 99.33% of borrowers on Morpho have reduced their costs by about 40%.
Morpho Protocol has been audited by renowned auditors such as Chain Security, Omniscia, Trail of Bits, Spearbit, Pessimistic and Solidified.
Highlights of Morpho Protocol (MORPHO)
Morpho Protocol is described as a tool to optimize the liquidity of pools. Morpho Protocol when integrated with Compound will be called Morpho-Compound, when integrated with Aave will be called Morpho-Aave.
Morpho-Compound analysis, this protocol acts as a proxy between the user and the Compound. Users can deposit, withdraw, borrow and return assets with the same liquidity and liquidation on Morpho-Compound as Compound.
However, the main difference is that users will get positions with better rates as the lender earns a profit close to the fee paid by the borrower. In the event that no one borrows, the lender still receives benefits from Compound (including APY and COMP token rewards). The same goes for borrowers. The improved interest rate is called P2P APY.
Specifically, when a lender deposits assets into Compound via Morpho Protocol (1), the protocol deposits assets into Compound (2), and mint cTokens (3).
When a borrower deposits collateral, such as a BAT token (4), Morpho links the loan to one or more lenders (5), who then uses their cTokens to transfer their assets. they get out of Compound's pool(6), and send it to the borrower (7).
In general, instead of using Compound and Aave, users can use Morpho to increase the profit rate and reduce the pay rate. Note, users will have to pay extra gas fees when using Morpho Protocol.
Benefits of holding MORPHO tokens
MORPHO is the future governance token of the Morpho DAO, which can be used to vote for:
- Deploy Morpho's smart contracts across multiple protocols and networks.
- Selection list of listed markets and other important parameters.
- Decentralize user interface hosting and administration using the domain Morpho.eth.
- DAO Treasury Management.
Tokens deployed by Morpho are initially non-transferable, the community will decide if these tokens are transferable in the future.
Project team, investors & partners
Project team
Morpho is a project developed by researchers from leading universities in France such as Telecom Paris, ENS, Institut Polytechnique de Paris, CNRS, Centrale Supelec. In there:
- CEO - Paul Frambot : Speaker of many blockchain economics courses at HEC Paris University, one of the most prestigious economic schools in France.
Investors
On July 13, Morpho Protocol successfully raised 18 million USD with the lead from 2 investment funds A16z and Variant. In addition, Morpho Protocol is also sponsored by many large investment funds as well as many other angel sponsors. In there:
- Andreessen Horowitz (a16z) : Venture capital fund with 14 years of operating experience and has invested billions of USD in many different projects and funds.
- Coinbase Ventures : The investment division under the management of Coinbase company, one of the largest exchanges in the US.
Partner
- CertoraInc : Platform that provides automated correct verification technology for smart contracts. The partnership provides ultimate security for users of Morpho Protocol.
- SpoolFi : A protocol that enables DeFi access in an automated and risk-diversifying manner. The partnership allows Spool users to optimize lending rates on stablecoins thanks to Morpho Protocol.
Roadmaps & Updates
Caterpillar: Create a liquidity pool optimizer
Lenders can automatically connect to matching borrowers, and reconnect to pools when no matching borrowers are available.
Caterpillars consists of 13 sets of multiple smart contracts, each of which optimizes a pool of liquidity on a chain. For example, Morpho-Aave on Polygon, Morpho-Aave on Ethereum, Morpho-Compound on Ethereum,...
Chrysalis: Introducing active liquidity in PLFs
Allows users to choose many different levels of P2P APY without depending much on the pools. (e.g. average rate, rate lower or higher but still within pool spreads).
Butterfly: Launching interest rate optimization service in DeFi
Allows lenders to choose their desired APY rate of return, inside or outside of pool spreads. Borrowed positions are linked together almost instantly, automatically and efficiently.
Morpho Protocol Token (MORPHO) Information
Key Metrics Morpho Protocol
- Token Name: Morpho Protocol
- Ticker: MORPHOR
- Blockchain: Ethereum
- Token Standard: ERC-20
- Contract: Updating...
- Token type: Governance.
- Total Supply: 1,000,000,000 MORPHOR
- Circulating Supply: Updating...
MORPHO Token Allocation
The MORPHO token is yet to be officially launched. Coin98 Insights team will update information as soon as there is an announcement from the project.
MORPHO Token Sale
Updating…
MORPHO Token Release Schedule
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How to earn and own MORPHO Token
Morpho is organizing the issuance of 5 million MORPHO rewards for the first phase for early users from June 8 to September 20, the number of rewards depends on the amount of assets that users lend or borrow on Morpho.
The 2nd batch rewards will be released starting September 20th with new MORPHO allocation rules.
MORPHO Token exchange & storage wallet
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Morpho Protocol's communication channel
- Twitter: https://twitter.com/MorphoLabs - 9.9K followers
- Discord: https://discord.com/invite/uB7vaJ4JGs - 8.5K members
- Medium: https://medium.com/morpho-labs
Similar projects
- Compound (COMP): Lending project with Money Market model, that is, as an intermediary for borrowers and lenders.
- Aave (AAVE): A loan and lending project that allows users to borrow or lend tokens.
summary
As such, Morpho Protocol has successfully created an efficient and highly liquid P2P marketplace that offers borrowed positions with close to zero spreads. With the benefits that Morpho Protocol brings to users, the small gas fee paid when using Morpho is considered insignificant.
