Dashboard & Use-case

Morpho sits between traditional lending pools and peer-to-peer matching. It's designed to make lending and borrowing more efficient while preserving compatibility with major protocols.

This peer-to-peer matching system is at the core of Morpho's use-case, as it allows for a reduced spread between borrow/supply APY's, higher LTV, and higher-than-usual Net APY.

"Spread" is a term that refers to the difference between the borrow and supply APY within a protocol. For example - If the supply APY is 4% and the borrow APY is 6% - then the spread is 2% Most protocols have spreads as a mechanism to ensure that the specific pool is functional with its current debt and collateral assets.

However, since Morpho pairs lenders and borrowers directly, the spread can be considerably lowered as there's less "mass management" of funds required.

Granted, the P2P nature of Morpho vaults makes their Net APY considerably more volatile than protocols that utilize large lending pools with funds from numerous users deposited into them. So while P2P allows for very high Net APYs, it can also be the same factor that leads to a massive dip in Net APY, and very quickly.

While borrowing from a Morpho vault, users also earn MORPHO token rewards, which are Morpho's governance tokens (which are transferable).

Morpho Vaults also provide users with the option of supplying funds to vaults that are managed by expert curators (e.g. Gauntlet or Steakhouse), who dynamically allocate funds across markets to maximize yields.

If you're looking to supply funds to a Morpho Vault, that option would be in our Smart Savings feature. We recommend reading through all Smart Savings articles to learn how you can get this done on DeFi Saver.

So, if you're inclined to open a position via Morpho, let's cover how to get that done:

Show me how:

Before opening a position on Morpho, let's have an overview of the protocol's dashboard. Understanding all of the available options will help you get the most out of managing your position on DeFi Saver. So, you've navigated to Morpho's dashboard by clicking the icon in the sidebar, and are met with the following screen:

The available tabs are:

  • Manage, which is where you'll be adjusting your position and viewing its metrics

  • Automate, which will let you use DeFi Saver's powerful automation features

  • Notify lets you receive notifications via Telegram/email when set parameters are met on your position. The tool will be soon available on Morpho

In the same row as these tabs, you'll find the following options:

  • The first option lets you select the wallet/account that you want to view.

  • The second option lets you select which market you'd like to open a position in

Let's now move onto the metrics that will help you do an assessment of your position:

  • "Net APY" is a metric that represents the % by which your position's Net value will increase/decrease in a year based on the current Supply/Borrow APY.

  • You'll be able to see the Collateral Ratio of your position

  • The right-hand side "Details" tab will give you a full breakdown of your position's details, including metrics like Liquidation limit and Borrow power used.

  • The "Automations" tab will show you any activate automations you may have for your position, while "Rewards" will show you any claimable that might be available.

We've now covered the basics of Morpho's dashboard, so you're now ready to open a position. Let's dive right into how you can do that.

Clicking the "Create" button will take you to a new tab:

The interface is pretty straightforward - You'll be able to:

  • Input the collateral amount

  • Input the borrow amount

  • View your position's metrics before opening it, which update in real time.

If you'd rather opt to open a Leverage position, simply click on the "Leverage" tab:

The interface is a bit more complex than the first due to the nature of leveraging. Here, you can:

  • Input the collateral amount

  • Set the leverage amount

  • Input the borrow amount

  • The exchange route (DeFi Saver will look to automatically find you the best one if you leave "Automatic")

  • Whether or not you want to use a Public Allocator (allowing your collateral to be used within other Morpho vaults if it encounters a lack of liquidity)

  • The slippage limit

  • View your position's metrics before opening it

Whether you're ready to open a Borrow or Leverage position - the finishing touch will be clicking "Create"

If the transaction succeeds, you'll see the pop-up from above. You can feel free to press "Done" if you're not yet interested in turning on Automations.

If you're interested in Automations, please refer to our Knowledge Base articles that cover everything automation-related.

Now that the position is opened, the "Manage" tab will look like this:

The final part of the dashboard we'll cover are the manual management tools:

  • Boost - This tool is used to increase your exposure to the collateral asset when the safety ratio of your position increases. It does this by borrowing more of the debt asset, swapping it to the collateral asset, and supplying it to your current position.

  • Repay - This tool is used to increase the safety ratio of your position by swapping part of your collateral asset in order to repay part of the debt.

  • Supply - This tool is used to add more collateral to your position in order to increase the safety ratio.

  • Withdraw - This tool is used to withdraw collateral from your position, in turn decreasing your safety ratio

  • Borrow - This tools is used to borrow more of the debt asset from your current position, in turn decreasing your safety ratio.

  • Pay back - This tool is used to pay back part of (or the entirety) of your debt, in turn increasing your safety ratio.

By clicking the "+" "Add second action" button next to the tab for your current tool, you'll be able to combine actions into a single transaction:

Before executing any of these actions, the dashboard will provide you with updated metrics for your position based on the values you've input:

You're now well equipped to efficiently manage your Morpho position on DeFi Saver!

We highly recommend reading through our Automation articles to get a better understanding of how you can further improve how your position is managed.

One of the main benefits of utilizing DeFi Saver's service is access to our automation options that maintain your position based on your personal inputs.

Automations have minimal debt requirements and their availability depends on the chain you're currently on.

Closing or Migrating your position:

The two remaining options on the dashboard that we haven't covered are Close and Migrate. There is also a "Wrap" option, which is used to wrap your legacy MORPHO tokens into their new version, providing more options with the token, such as transferability and onchain governance:

You also have the option to use the "Shift" option, which moves your position from one protocol to another. We have an entire segment dedicated to this feature, so if you're interested, please read through the Loan Shifter article.

If you decide to close down your current position, the steps are extremely straightforward:

  1. Navigate to the main dashboard.

  1. Select the "Close" button:

  1. Choose how you'd like to close your position.

  1. Since closing from your position involves swaps, you can also (optionally) set the exchange route and slippage limit.

  1. Press "Close Morpho"

The "Close (to X)" represents which asset will be withdrawn to your EOA wallet once the position is fully closed. To understand this in more detail, let's look at how the "Close" tool works in the background:

  • First, it flash loans the debt asset

  • It uses the flash loaned funds to pay back all of the debt

  • Now that your collateral is freed up, it's withdrawn

  • The collateral is then swapped to the debt asset

  • This is used to pay back the flash loan

  • The remaining funds are withdrawn to your EOA

Now, if you choose "Close to (collateral asset)", this means that it will only swap enough of your collateral to cover the flash loan, but it will withdraw the rest in the collateral token. If you choose "Close to (debt asset)", it's going to swap all of your collateral to the debt asset, pay back the flash loan, and the rest will be withdrawn in the debt token.

To Migrate a position, visit the main dashboard, and click the three dots next to the "Close" option:

From there, you can choose the wallet you'd like to migrate the position to:

Once everything is set up, click "Migrate"

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