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 | Data breakdown

# Morpho Net deposits Methodology

## 1. Overview

Net deposits measures the total USD value of user assets locked in Morpho's smart contracts across all supported products. Supply-side deposits, posted collateral, matched P2P loan balances, committed open offers, and vault idle assets are aggregated daily across Morpho Blue, Morpho Optimizers (built on Aave V2, Aave V3, and Compound), and Morpho Midnight. The metric provides investors with a unified view of capital committed to the protocol and is used to assess protocol scale and user trust.

## 2. Data sources

- **Blockchain events**: `Supply`, `Withdraw`, `SupplyCollateral`, `WithdrawCollateral`, `Borrow`, `Repay`, `Liquidate`, and `AccrueInterest` events from `Morpho Blue` contracts (Morpho Blue, covering Ethereum, Arbitrum, Base, Polygon, and 15 other chains); `Mint`, `Burn`, and `BalanceTransfer` events from `AToken` contracts, `Mint` and `Burn` events from `VToken` contracts, and `ReserveDataUpdated` events from `LendingPool` contracts (Morpho Optimizer - Aave V3, Ethereum); `Mint` and `Burn` events from Aave V2 `AToken` contracts and `ReserveDataUpdated` events from Aave V2 `LendingPool` contracts, plus `PostTotalShares` events from Lido V1 `Oracle` contracts and `TokenRebased` events from `stETH` contracts for the stETH market (Morpho Optimizer - Aave V2, Ethereum); ERC-20 `Transfer` events for the Morpho Compound Optimizer account address (Morpho Optimizer - Compound, Ethereum); `P2PTotalsUpdated` events from Aave V3 Morpho contracts, `P2PAmountsUpdated` events from `EntryPositionsManager` and `PositionsManager` contracts, and `IndexesUpdated` and `P2PIndexesUpdated` events from Morpho interest rate manager contracts (Morpho Optimizer P2P active loans, Ethereum); `SupplyCollateral`, `WithdrawCollateral`, `Take`, `Repay`, `Withdraw`, `Liquidate`, and `ClaimContinuousFee` events from `Midnight` contracts (Morpho Midnight, covering Arc, Base, Ethereum, Robinhood Chain, and Tempo)
- **Scraper snapshots**: Daily committed lend liquidity snapshots for Morpho Midnight open offers, sourced from Morpho's API feed
- **State call data**: Daily `balanceOf` results for Vault V2 idle asset balances, or reconstructed from ERC-20 `Transfer` events for Monad where historical state calls are unavailable
- **External data**: End-of-day price feeds for all deposited and collateral assets

## 3. Step-by-step calculation

### Component A: Morpho Blue market supply and collateral balances

- **Purpose**: Compute the running supply-side and collateral balances for every active Morpho Blue market
- **Logic**: `Supply` and `Withdraw` events from `Morpho Blue` contracts are accumulated into per-market supply asset and supply share totals, ordered by block number and log index. `SupplyCollateral` and `WithdrawCollateral` events are accumulated into per-market collateral balances. `Liquidate` events deduct the seized collateral from the borrower's collateral balance and deduct the bad debt amount from the market's total supply asset balance. `AccrueInterest` events add accrued interest to the market's supply asset balance, tracked under the zero address for protocol-level bookkeeping. Markets on the exclusion list are removed: hand-listed markets (exploited contracts, oracle failures, and confirmed bad-debt situations) are excluded on all dates; feed-driven exclusions apply from their effective start date to an optional end date, after which the market re-enters calculations.
- **Key fields**: `assets` (deposit and collateral amounts), `shares` (supply and borrow share quantities), `interest` (accrued interest per `AccrueInterest` event), `market_id` (market identifier)

### Component B: Morpho Optimizer - Aave V3 supply balances

- **Purpose**: Compute the active supply-side balance of the Morpho Aave V3 Optimizer on Ethereum
- **Logic**: `Mint` events from `AToken` contracts where the `onBehalfOf` field matches the Optimizer account address are parsed to derive scaled principal amounts using `(value - balanceIncrease) / (liquidity_index / 1e27)`. `Burn` events matching the same address represent withdrawals and are subtracted using the symmetric formula `(value + balanceIncrease) / (liquidity_index / 1e27)`. `BalanceTransfer` events into or out of the Optimizer address adjust the running balance. The liquidity index is sourced from `ReserveDataUpdated` events from Aave V3 `LendingPool` contracts and carried forward between updates. Active deposits are computed as `scaled_principal_balance * (liquidity_index / 1e27)` and normalized by decimal precision.
- **Key fields**: `value` (scaled transfer amount), `balanceIncrease` (interest component), `index` (liquidity index)

### Component C: Morpho Optimizer - Aave V2 supply balances

- **Purpose**: Compute the active supply-side balance of the Morpho Aave V2 Optimizer on Ethereum
- **Logic**: The scaled-principal method is applied using `Mint` and `Burn` events from Aave V2 `AToken` contracts filtered to the Morpho Aave V2 Optimizer address, with the liquidity index carried forward from `ReserveDataUpdated` events from Aave V2 `LendingPool` contracts. For the stETH market specifically, a share-based method is used: deposit and withdrawal amounts are converted to shares by dividing by the rebase index sourced from `PostTotalShares` events from Lido V1 `Oracle` contracts (for events before the Lido V2 upgrade cutoff) and `TokenRebased` events from `stETH` contracts (after the cutoff); the running share balance is then multiplied by the current rebase index to yield the rebased asset balance.
- **Key fields**: `value` (scaled principal or stETH share amount), `index` (liquidity index or rebase index), `balanceIncrease` (interest component)

### Component D: Morpho Optimizer - Compound supply balances

- **Purpose**: Compute the active supply-side balance of the Morpho Compound Optimizer on Ethereum
- **Logic**: ERC-20 `Transfer` events into and out of the Morpho Compound Optimizer account address are summed into daily net flows per supported cToken market. Only cToken-to-underlying-asset pairs in a fixed allowlist are included, scoping the calculation to the markets supported by the Compound Optimizer. The running cToken balance is converted to the underlying asset amount using the ratio of the underlying asset's end-of-day price to the cToken's end-of-day price.
- **Key fields**: Inbound and outbound transfer amounts per cToken address, underlying-to-cToken price ratio

### Component E: Morpho Optimizer P2P active loans

- **Purpose**: Capture outstanding P2P-matched borrow balances for Morpho Optimizer - Aave V2, Morpho Optimizer - Aave V3, and Morpho Optimizer - Compound on Ethereum
- **Logic**: Scaled P2P borrow totals are extracted from `P2PTotalsUpdated` events from Aave V3 Morpho contracts and `P2PAmountsUpdated` events from `EntryPositionsManager` and `PositionsManager` contracts. The P2P borrow index from `IndexesUpdated` and `P2PIndexesUpdated` events from Morpho interest rate manager contracts is applied to the scaled total to produce the actual outstanding borrow amount. Borrow balances are weighted by the number of Ethereum blocks they remain unchanged and averaged over each calendar day to yield a time-weighted daily P2P borrow figure. Balances are carried forward to fill days with no index update activity.
- **Key fields**: Scaled P2P borrow amount, P2P borrow index, block number (for time-weighting)

### Component F: Morpho Midnight balances

- **Purpose**: Compute collateral, loan supply, outstanding borrow, and committed open offer balances for Morpho Midnight markets on Arc, Base, Ethereum, Robinhood Chain, and Tempo
- **Logic**: Three balance types are maintained per market from `Midnight` contract events: collateral accumulates `SupplyCollateral` minus `WithdrawCollateral` minus seized assets from `Liquidate`; loan supply accumulates repaid units from `Repay` and liquidated repaid units from `Liquidate` minus withdrawn units from `Withdraw` and fee amounts from `ClaimContinuousFee`; outstanding borrows accumulate `total_units_delta` from `Take` events minus units from `Repay` and combined repaid and bad-debt units from `Liquidate`. Committed open offer balances represent lend liquidity not yet matched to a borrower; the latest daily scraper snapshot per chain is used as the end-of-day figure, and days where the snapshot returned no open offers are excluded rather than treated as zero. All amounts are normalized by decimal precision.
- **Key fields**: `assets` (collateral amounts), `units` (loan and borrow amounts), `total_units_delta` (net borrow change per `Take`), `committed_assets` (open offer balances)

### Component G: Vault V2 idle assets

- **Purpose**: Capture underlying asset balances held in Morpho Vault V2 contracts but not yet deployed to any Morpho Blue market
- **Logic**: For most chains, the idle asset balance is sourced from daily on-chain `balanceOf` state call results, where the queried account is the vault address and the asset contract is the vault's underlying asset. For Monad, the balance is reconstructed from the cumulative net of ERC-20 `Transfer` events into and out of each Vault V2 address, since historical state calls are unavailable. Balances are carried forward across days with no on-chain activity. Only V2.0 vaults are included; MetaMorpho vaults (v1.0 and v1.1) do not hold idle assets and are excluded.
- **Key fields**: `idle_assets` (raw asset balance), `vault_address`, `vault_asset_address`

### Component H: USD conversion and aggregation

- **Purpose**: Normalize all asset balances to USD and aggregate into the net deposits figure
- **Logic**: Daily asset balances from all components are normalized by decimal precision and multiplied by the end-of-day asset price. Prices are resolved from on-chain price feeds, with fallback to backup price sources and asset-level price overrides where primary feeds are unavailable. USD balances are accumulated into a daily cumulative total per (chain, product, asset) by summing day-over-day deltas. Net deposits is computed as the sum of USD TVL across all products, balance types, and chains per day. Chain availability filters are applied to exclude data beyond each chain's last approved timestamp or, for archived chains, beyond the archival cutoff date.

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

Value of user assets deposited in the protocol.

MorphoMORPHO

Net deposits

Net deposits

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Chain breakdown