Base

Morpho's lending stack is built around two core components: 

Morpho Markets
Morpho Vaults

What they are, and how they work together 👇

Morpho Markets are the core building blocks of the Morpho Stack.

They are primitive, permissionless, immutable, autonomous, and allow anyone to lend/borrow one asset against one collateral asset.

Borrowers interact with Morpho Markets directly.

Earn, Borrow, Build on Morpho 
/morpho and app.morpho.org

Morpho Vaults are built on Morpho Markets.

Vaults aggregate markets with vault-level custom risk parameters set by curators like @gauntlet, MEV Capital, @steakhousefi, Block Analitica, and more.

Lenders deposit into Morpho Vaults to earn yield.

How Morpho Markets and Vaults work together:

🔹 Lenders deposit into a vault
🔹 Vault allocates deposits to markets 
🔹 Users borrow assets from markets
🔹 Interest paid by borrowers is paid to the vault
🔹 Yield is shared amongst lenders

Each Morpho Vault has a unique risk profile.

Vaults share liquidity to the extent they share Markets.