Risk contagion is the biggest threat in decentralized lending. That's why @Morpho Labs 🦋 built Morpho Blue with isolated markets at its core.
Every lending pair is a standalone, immutable market. If one market experiences issues (e.g., a long-tail asset oracle fails), the rest of the protocol remains unaffected and secure. This is a massive leap forward from the monolithic protocols of the past.
This modular design not only boosts security but also enables builders to permissionlessly create any market they want, with their own specific collateral, oracle, and risk parameters. It’s an infrastructure game-changer.
Security first, efficiency always. That's the Morpho way.
Are you prioritizing risk-isolated lending? Learn more about the $MORPHO ecosystem!
