Morpho Vaults: Advanced Yield Strategies in DeFi
@Morpho Labs 🦋
Morpho Vaults are an innovative approach to decentralized finance (DeFi), designed to optimize yield and borrowing cost for users.
The most well-known of these are Morpho-Aave/Compound Vaults. These vaults use the Morpho protocol’s peer-to-peer (P2P) matching engine.
How it works: When a user supplies or borrows assets in Aave or Compound, Morpho Vault automatically matches their liquidity with peer-to-peer loans.
Advantages: This allows suppliers to earn higher yields (APY) than standard protocols, and borrowers to pay lower interest rates.
In short, Morpho Vaults acts as an intermediary that enhances the functionality of existing liquidity protocols, allowing users to gain improved financial benefits from their core DeFi activities.
