Lenders can earn on Morpho using Morpho Vaults, noncustodial simple to use lending vaults that optimize yields for depositors. Borrowers can borrow any assets directly from Morpho Markets. Developers and businesses can use different parts of Morpho’s permissionless infrastructure to build any custom use case or application.

Morpho is an open, efficient, and resilient platform that allows anyone to earn yield and borrow assets. At the same time, developers or businesses can create markets, curate vaults, and build a range of applications on its flexible, immutable infrastructure.

MORPHO tokenholders own and govern the protocol. They currently do not take a cut of the interest and third-party token incentives earned by lenders (revenue). Morpho's investors include a16z, Coinbase Ventures, Semantic Ventures, etc.

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Morpho

Morpho | Data breakdown

# Morpho Expenses Methodology

## 1. Overview

Expenses is measured as the total cost incurred by Morpho to operate its business. Included in this metric are asset incentives paid to supply-side and demand-side users. These incentives are utilized to bootstrap liquidity and encourage participation across Morpho Optimizers. Rewards are distributed either directly as legacy incentives or through Merkl via the Angle Distributor.

## 2. Data sources

- **Blockchain events**: `Claimed` events from `UniversalRewardsDistributor` contracts, and ERC-20 token transfers from the Morpho rewards multisig address to the Angle Distributor contract, covering Ethereum and Base
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Morpho Optimizers legacy rewards extraction

- **Purpose**: Legacy asset incentives distributed directly via Morpho contracts are captured.
- **Logic**: `Claimed` events are parsed from `UniversalRewardsDistributor` contracts on Ethereum and Base. The reward asset address and the claimed amount are extracted from each event.
- **Key fields**: `block_timestamp` (timing), `reward` (asset identification), and `amount` (raw incentive amount).

### Component B: Morpho Optimizers Merkl rewards extraction

- **Purpose**: Current asset incentives distributed through Merkl are captured.
- **Logic**: ERC-20 token transfers are filtered on Ethereum where the sender matches the Morpho rewards multisig address and the recipient matches the Angle Distributor contract. The transferred asset address and the transfer value are extracted.
- **Key fields**: `block_timestamp` (timing), `token_address` (asset identification), and `value` (raw transfer amount).

### Component C: USD conversion and decimal normalization

- **Purpose**: Extracted incentive amounts are normalized and converted to USD.
- **Logic**: Raw amounts are divided by the asset's decimal precision using asset metadata. The normalized amounts are then multiplied by end-of-day asset prices to determine the USD value.
- **Key fields**: `price_usd` (asset price) and `decimals` (decimal precision).

### Component D: Daily aggregation and zero-filling

- **Purpose**: Daily expenses are aggregated and finalized.
- **Logic**: The USD-denominated incentive values are summed by day, chain, and product (Morpho Optimizers). Daily values are generated using UTC day boundaries, and any days without activity are filled with zeros.
- **Key fields**: `timestamp` (daily granularity) and `expenses` (final aggregated value).

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total project operating and incentive expenses.

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Expenses

Expenses

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Chain breakdown