lending protocol review
Morpho Blue
Permissionless isolated lending markets where vault curators and market parameters determine the effective risk surface.
partialhigh
TVL
$6.70B
Protocol reported or analyst-entered value.
Exposure
$3.90B
Mapped collateral and market exposure.
Dependencies
19
1 critical dependencies.
Markets
3
3 monitor signals configured.
Protocol facts
Static fields from the typed research record.
ProductsBlue markets, MetaMorpho vaults
ChainsEthereum, Base
Categorylending
Review statuspartial
Markets
Collateral, oracle, cap, and liquidation parameters by market.
| Market | Chain | Collateral | Oracles | LTV | Liquidation | Supply cap | Borrow cap | Utilization |
|---|---|---|---|---|---|---|---|---|
| wstETH/USDC vault markets | Ethereum | oracle:ethereum:chainlink:wsteth-eth, oracle:ethereum:chainlink:usdc-usd | 77% | 82% | $2.10B | $1.40B | 88.0% | |
| Base cbETH/USDC markets | Base | oracle:base:chainlink:cbeth-eth, oracle:base:chainlink:eth-usd | 72% | 78% | $900.0M | $520.0M | 76.0% | |
| sUSDe leveraged stable markets | Ethereum | oracle:ethereum:ethena:usde-usd, oracle:ethereum:chainlink:stablecoins | 72% | 77% | $1.00B | $700.0M | 90.0% |
Risk findings
Findings separate the observed evidence from the analyst outcome.
| Severity | Dimension | Finding | Outcome | Evidence | Sources |
|---|---|---|---|---|---|
| high | governance admin | Vault curator policy matters | Bad debt can accrue. | MetaMorpho users inherit curator choices for market allocation and collateral parameters. | |
| medium | oracle | Markets are oracle-specific | Oracle data can become stale or manipulated. | Each market binds collateral and loan asset to an oracle configuration. |
Dependency edges
Inbound and outbound trust assumptions touching this protocol.
| Severity | Direction | Edge type | Dependency path | Analyst label |
|---|---|---|---|---|
| high | outbound | accepts collateral | Morpho Blue -> sUSDe | Morpho Blue sUSDe leveraged stable markets accepts sUSDe as collateral or core liquidity |
| high | outbound | accepts collateral | Morpho Blue -> USDe | Morpho Blue sUSDe leveraged stable markets accepts USDe as collateral or core liquidity |
| medium | outbound | accepts collateral | Morpho Blue -> wstETH | Morpho Blue wstETH/USDC vault markets accepts wstETH as collateral or core liquidity |
| medium | outbound | accepts collateral | Morpho Blue -> USDC | Morpho Blue wstETH/USDC vault markets accepts USDC as collateral or core liquidity |
| medium | outbound | accepts collateral | Morpho Blue -> USDC | Morpho Blue Base cbETH/USDC markets accepts USDC as collateral or core liquidity |
| medium | outbound | accepts collateral | Morpho Blue -> USDC | Morpho Blue sUSDe leveraged stable markets accepts USDC as collateral or core liquidity |
| medium | outbound | governed by | Morpho Blue -> Ethereum | Morpho vault and protocol governance paths inherit Ethereum execution risk |
| medium | outbound | depends on | Morpho Blue -> Uniswap V3 | Morpho liquidation and oracle review includes Uniswap liquidity surfaces |
| low | outbound | settles on | Morpho Blue -> Ethereum | Morpho Blue deployment inherits Ethereum settlement risk |
| low | outbound | accepts collateral | Morpho Blue -> WETH | Morpho Blue wstETH/USDC vault markets accepts WETH as collateral or core liquidity |
| low | outbound | accepts collateral | Morpho Blue -> cbETH | Morpho Blue Base cbETH/USDC markets accepts cbETH as collateral or core liquidity |
| low | outbound | accepts collateral | Morpho Blue -> WETH | Morpho Blue Base cbETH/USDC markets accepts WETH as collateral or core liquidity |
Blast radius
Highest-severity paths that could transmit risk into or out of this protocol.
| Severity | Direction | Edge type | Dependency path | Analyst label |
|---|---|---|---|---|
| high | outbound | accepts collateral | Morpho Blue -> sUSDe | Morpho Blue sUSDe leveraged stable markets accepts sUSDe as collateral or core liquidity |
| high | outbound | accepts collateral | Morpho Blue -> USDe | Morpho Blue sUSDe leveraged stable markets accepts USDe as collateral or core liquidity |
| medium | outbound | accepts collateral | Morpho Blue -> wstETH | Morpho Blue wstETH/USDC vault markets accepts wstETH as collateral or core liquidity |
| medium | outbound | accepts collateral | Morpho Blue -> USDC | Morpho Blue wstETH/USDC vault markets accepts USDC as collateral or core liquidity |
| medium | outbound | accepts collateral | Morpho Blue -> USDC | Morpho Blue Base cbETH/USDC markets accepts USDC as collateral or core liquidity |
| medium | outbound | accepts collateral | Morpho Blue -> USDC | Morpho Blue sUSDe leveraged stable markets accepts USDC as collateral or core liquidity |
| medium | outbound | governed by | Morpho Blue -> Ethereum | Morpho vault and protocol governance paths inherit Ethereum execution risk |
| medium | outbound | depends on | Morpho Blue -> Uniswap V3 | Morpho liquidation and oracle review includes Uniswap liquidity surfaces |
| low | outbound | settles on | Morpho Blue -> Ethereum | Morpho Blue deployment inherits Ethereum settlement risk |
| low | outbound | accepts collateral | Morpho Blue -> WETH | Morpho Blue wstETH/USDC vault markets accepts WETH as collateral or core liquidity |
| low | outbound | accepts collateral | Morpho Blue -> cbETH | Morpho Blue Base cbETH/USDC markets accepts cbETH as collateral or core liquidity |
| low | outbound | accepts collateral | Morpho Blue -> WETH | Morpho Blue Base cbETH/USDC markets accepts WETH as collateral or core liquidity |