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Morpho Architecture

Definition

Morpho architecture refers to the specific design and operational framework of the Morpho lending protocol, which aims to enhance capital efficiency in decentralized finance. This architecture typically optimizes interest rates by matching lenders and borrowers directly, rather than solely relying on pooled liquidity. It functions as an overlay on existing lending protocols, routing liquidity more effectively. The design seeks to improve returns for lenders and reduce costs for borrowers.