Morpho

Morpho unbundles lending into an immutable primitive plus an external curation layer. A Morpho variable-rate market (Morpho Blue) pairs exactly one collateral asset with one loan asset and fixes four parameters at creation, the oracle, the interest rate model, the LLTV and the two assets, after which they persist in perpetuity; market creation is permissionless and requires no governance vote, though the LLTV and IRM must be drawn from governance-approved sets (Morpho docs). Governance-approved LLTVs are 0, 38.5, 62.5, 77.0, 86.0, 91.5, 94.5, 96.5 and 98.0 percent, and the only approved IRM is AdaptiveCurveIRM (Morpho docs). Because each market is isolated and immutable, risk selection moves to vault curators: MetaMorpho and Vaults V2 allocate depositor funds across markets, so the depositor is really buying a curator's credit judgment. In 2026 Morpho added a fixed-rate, fixed-term protocol, Midnight, launched on Base in July 2026, in which lenders and borrowers propose their own rates and maturities instead of relying on a utilisation curve (Binance Square).