Morpho

A Morpho market (originally called Morpho Blue) is defined by five fixed choices: the loan asset, the collateral asset, the price oracle, the liquidation loan-to-value (LLTV) and the interest-rate model. Anyone can create a market, but only with LLTVs and rate models that governance has whitelisted. Once created, a market's settings never change, and its losses stay inside it (Morpho docs).

The core contracts are immutable. Morpho's security page lists formal verification with Certora, mutation testing and a $2.5M bug bounty on Cantina (Morpho docs). Governance cannot touch deposits. Its powers are limited to the MORPHO treasury, the upgradeable MORPHO token contract, whitelisting, and a fee switch capped at 25% of borrower interest. A 5-of-9 multisig executes approved votes.

Morpho Midnight, live since 21 July 2026, adds fixed-rate, fixed-term loans with early exit through limit orders on a secondary market (Morpho). Coinbase launched fixed-rate crypto-backed loans on top of it. The Morpho card scores the variable-rate lending product.

Most people never pick a market themselves. They deposit into a vault, which spreads deposits across several markets. Each vault has a curator, an outside firm such as Steakhouse Financial, Gauntlet or Re7, that decides which markets the vault may lend into and how much each can take. A Public Allocator can move liquidity between a vault's approved markets on demand.

That puts vault risk with the curator, and 2025–26 showed how much the choice matters:

• November 2025: when xUSD, deUSD and USDX lost their pegs, vaults from several curators that lent against them took bad debt. Vaults limited to blue-chip collateral, such as Steakhouse's, reported no losses.
• 22 March 2026: after Resolv's USR stablecoin was exploited, curator vaults routed about $6.2M of USDC into markets that still priced USR through a hardcoded oracle, 96% of it from Gauntlet vaults. The Public Allocator helped move that liquidity in (Rekt). The exploit's direct hit inside Morpho had been about $4,900.
• May 2025: a manipulated LP-token oracle on a Base market created $49,303 of bad debt, which the curator, Clearstar, covered within hours (Morpho forum).

Morpho's contracts behaved as designed in each case. The failures were in collateral choices and oracles set by other people. Our risk-manager ledger tracks the main curators' records.

The Morpho Association is a French non-profit association registered in Paris (SIREN 911 156 933), and it is the contracting party in Morpho's terms of use (Terms). Paul Frambot, co-founder and CEO, still writes Morpho's product announcements. The Association raised $175M in June 2026 in a round co-led by Paradigm, a16z crypto and Ribbit, with Apollo Funds, Circle Ventures, VanEck and others joining (Morpho).

MORPHO has a maximum supply of 1 billion. As of November 2024, 35.4% was held by Morpho governance. The original token was an immutable contract with no on-chain vote tracking, so governance wrapped it in an upgradeable version under MIP-75, and only wrapped MORPHO is transferable (Morpho docs). Token data is on our market page.

Morpho powers products for large platforms. The Association names Coinbase, Kraken and Binance among exchanges using it, Bitwise, Galaxy and Anchorage among institutions, and Ledger among consumer brands. Robinhood chose it to power a new earn product. For most of those users, Morpho is infrastructure they never see.