Morpho
Crypto Overview
Overview
Morpho is a lending optimization protocol built on top of existing lending platforms like Compound and Aave. It aims to improve lending efficiency by matching lenders and borrowers peer-to-peer when possible while using underlying pools as fallback.
Purpose and Utility
The MORPHO token is primarily used for governance of the Morpho protocol. Token holders can vote on protocol parameters, upgrades, and treasury management. The token was distributed to early users and contributors of the protocol.
Business Model Analysis
The core business model revolves around interest-based lending and borrowing, which is fundamentally problematic from an Islamic finance perspective as it involves riba (interest). While the protocol introduces technical innovations in DeFi lending efficiency, its primary use case remains interest-based lending.
Adoption and Usage
The protocol has seen significant adoption with over $600M in total value locked (TVL) as of early 2024. Major institutional players and DeFi users actively utilize the protocol for lending and borrowing activities.
Development Activity
The project maintains active development with regular updates to the protocol. The team has demonstrated technical competence and continues to improve the platform's functionality.
Token Distribution
The token distribution includes allocations to the team, investors, and community, with vesting periods in place. The distribution model appears designed for long-term alignment rather than short-term profit taking.
Crypto Impact
To assign a comfort level investing in Morpho from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Morpho.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.