General Information

This page gathers the main information related to Morpho-Aave-V3, the third instance of Morpho.
Third instance of Morpho.


Morpho-Aave V3 is very similar to the current versions of Morpho already deployed on Compound V2 and Aave V2, except for a few features and new design choices to overcome Aave V3’s specific constraints.
To better understand how Morpho-Aave V3 works, you will need to be familiar either Morpho-Aave V2 or Morpho-Compound. Resources on both can be found on the Homepage. The overall product is similar but Morpho-Aave V3 has a few differences: new features, improvements, and design changes.

New features

  • Efficiency Mode
  • Account Management
  • Gasless token approvals with PERMIT2
  • New & Improved Matching Engine

Design Changes

The yellow paper explains the mechanism used by Morpho-Aave V2. However, with the introduction of new supply and borrow caps in Aave V3, different design choices had to be made to overcome the liquidity constraints that Morpho could face. Thus, there are new mechanisms in Morpho-Aave V3:
  • Supply and collateral split
  • Idle supply
The next section will provide additional details.