Morpho

Morpho is a decentralized, noncustodial lending protocol that allows the creation of immutable and efficient lending markets in a permissionless way.

The protocol provides users with the opportunity to borrow supported assets by providing collateral. The collateral must exceed in value in compartment to the borrowed asset, this also referred to as a overcollateralized loan.

Morpho specifies the minimum value of collateral required relative to the borrowed assets - also known as Liquidation Loan-To-Value (LLTV). If the value of the borrowed assets surpasses the LLTV, perhaps due to market volatility, the position would be then eligible for liquidation.

Liquidators can liquidate up to 100% of the account’s debt and receive the corresponding collateral value, plus the relative incentive.

Morpho isn’t oracle-less but is oracle-agnostic. Meaning market creators can individually specify an address that returns the price for loan and collateral assets.

Some markets can utilize a mechanism similar to one present in Ajna, and some can feature oracles like Chainlink or Redstone.

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Related Articles:

• Dashboard & Use-case

• Available assets & compatibility