Defi Popularization
Morpho and Euler Restaurants (similar to outsourcing)
In simple terms: Many dishes here are outsourced, third parties use the restaurant's facilities to cook and give a cut to the restaurant; the official does not take responsibility for the quality of these dishes. Moreover, there is no access control here; anyone can come and sell dishes (deploy lending markets).
Terminology version: Morpho and Euler are Permissionless Markets - markets that do not require permission.
Anyone can deploy markets through the infrastructure provided by both without review. The roles that deploy these markets and manage the funds pools (Vaults) are called Risk Curators.
If a Risk Curator does not manage risks properly and introduces bad assets like xUSD as collateral, the corresponding market may experience bad debts, and the vault that deploys funds in that market may suffer financial losses (e.g., no liquidity withdrawal).
This architecture is more modular, and liquidity is more fragmented, but the markets and vaults that experience defaults will not affect other markets; bad debts are not shared, and risks are isolated.