Morpho

Is Morpho a secure platform?

Morpho prioritizes security through rigorous audits by firms like ChainSecurity and Spearbit, formal verification processes, and immutable smart contracts. Its architecture inherits battle-tested security from integrated protocols like Aave while adding P2P efficiency. The protocol’s fixed LLTV ratios and liquidation mechanisms further mitigate risks, though users must monitor positions to avoid liquidations.

How to use Morpho?

Users select a market on Morpho’s interface, supply collateral, and borrow assets up to the LLTV limit, with interest rates dynamically adjusted by the AdaptiveCurveIRM model. Lenders deposit funds to earn yield through P2P matches or underlying protocol rates, while borrowers manage collateral ratios to avoid liquidation. Transactions are executed via audited smart contracts, with gas optimizations like Permit2 for approvals.