Morpho - Gauntlet USDC Core
What is Morpho?
Morpho is a trustless and efficient lending primitive with permissionless market creation.
It enables the deployment of minimal and isolated lending markets by specifying:
- one collateral asset,
- one loan asset,
- a Liquidation Loan To Value (LLTV),
- an Interest Rate Model (IRM),
- and an oracle.
The protocol is trustless and was designed to be more efficient and flexible than any other decentralized lending platform.
What are the benefits of Morpho?
Morpho is a trustless lending protocol that offers greater efficiency and flexibility than existing lending platforms. Its primitive design makes it the ideal building block for users and applications.
Trustless
Immutable: Morpho is not upgradable. The protocol will run and behave the same way forever.
Governance-minimized: Morpho Governance cannot halt market operations, manage user funds, or impose specific oracle implementations.
Simple: The protocol consists of only 650 lines of Solidity code. This simplicity makes it particularly easy to understand and safe.
Efficient
Higher collateralization factors: Morpho’s Lending markets are isolated.
Improved interest rates: Collateral assets are not lent out to borrowers.
Low gas consumption: Morpho is a remarkably simple protocol built in a singleton smart contract that groups every possible primitive market in the same place.
Flexible
Permissionless market creation: Morpho features permissionless asset listing.
Permissionless risk management: Morpho allows for additional layers of logic to enrich its markets.
Developer-friendly: Morpho features several modern smart contract patterns. Learn More
What are Morpho’s Interest Rate Models?
Morpho is an Interest Rate Model (IRM) agnostic protocol, meaning it can support any interest rate model for its markets. In Morpho, the interest borrowers pay in a given market is defined by the IRM chosen at market creation among a governance-approved set.
Initially, this set is composed of one immutable IRM, the AdaptiveCurveIRM.
The AdaptiveCurveIRM is engineered to maintain the ratio of borrowed assets over supplied assets, commonly called utilization, close to a target of 90%. Learn More
What is the performance fee?
The Morpho Vaults protocol itself is governance-less, meaning Morpho governance is not involved in the operations of the protocol or individual Morpho Vaults.
A Morpho Vault is governed by the owner of the smart contract. As explained in the Role section, the owner can also assign one curator, one guardian, and multiple allocators to help manage the vault.
Morpho DAO can’t take fees on Morpho Vaults but Vaults owners can set a performance fee to their Morpho Vault. The fee is a percentage of the interest generated by the vault. The maximum performance fee is 50%.
What are Morpho Vaults?
Morpho Vaults is a protocol for permissionless lending vaults built on top of the Morpho protocol.
It serves two types of users. Risk experts using the MetaMorpho Factory to spin up noncustodial lending vaults, and everyday users with a simpler way to lend on Morpho.
How is the net APY calculated?
To get the net APY as displayed in the Morpho Interface, one needs to understand the following.
Why Rewards APR?
The distinction between APY and APR is that APY takes into account the effect of compounding interest, while APR does not. In the case of rewards, the APR is the most relevant metric to consider, as rewards are not reinvested in users' positions.
What are Rewards?
Rewards are incentives provided by the Morpho DAO, market creators and/or curators to users, encouraging them to interact with Morpho markets.
The claimability of rewards earned through Morpho's rewards programs is based on an epoch system. Currently, epochs are weekly, this period is due to be shortened in the near future. When an epoch ends, the rewards accumulated during the previous epoch become claimable. There is no deadline to claim the rewards earned.
What is Gauntlet?
Gauntlet is a crypto-native economic modeling and research firm specializing in treasury and risk management, incentive optimization, and mechanism design. Gauntlet uses battle-tested techniques from algorithmic trading to help protocols manage risk, optimize revenue, and design better incentives. Gauntlet simulation models inform parameter decisions for protocols of all sizes, including the leading DeFi protocols.
Disclaimer & Risk Notice
Helixbox solely provides a user interface and does not control any contracts, assets, or protocol functions from 3rd party DeFi Protocols. This premium DeFi product’s smart contract operations and asset management are exclusively governed by the Morpho Protocol, and the risks associated with its use are inherent.
User Interface Risks
User interface risks refer to the potential for users to misunderstand or misuse the Helixbox interface, leading to unintended actions or transactions. Helixbox is complex, involving multiple interconnected components and possible interactions. There is a risk that users may:
- Misinterpret information displayed on the App.
- Click incorrect buttons, resulting in unintended transactions.
- Fail to understand the full implications of their actions, which may lead to financial losses.
Helixbox is not an investment advisor. The information provided is for educational purposes only and should not be considered financial advice. Before making any investment decisions, please conduct your own research and consult a professional financial advisor.
By participating, you acknowledge that this investment carries inherent risks and involves engagement with the Morpho Protocol. For a detailed breakdown of potential risks, please review:
By interacting with Helixbox and Morpho Protocol, I acknowledge and accept these risks and take full responsibility for my investment decisions.