Deep liquidity
Morpho is as liquid as the underlying lending pool. If you can immediately borrow billions on Aave (resp. Compound), you will be able to immediately withdraw/borrow billions on Morpho-Aave (resp. Compound).
This feature enables any protocol with considerable liquidity constraints, i.e., they want to withdraw/borrow large amounts at any time, to use Morpho.
Example: Some decentralized stablecoin protocols build strategies for their collateral to work. However, those strategies must be very liquid so that the protocol can redeem the tokens and ensure the peg of the assets. That is why many of those protocols build strategies on Compound or Aave, famous for being highly liquid. With Morpho-Compound, stablecoin protocols optimize their collateral strategies' capital efficiency while preserving the same liquidity as a lending pool: the protocol can instantly withdraw hundreds of millions of collateral.
Copy link