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 Total value locked Methodology

## 1. Overview

Total value locked (TVL) is calculated as the total value of assets deposited as collateral or supply within the Morpho protocol. This metric is utilized as a key indicator of the protocol's liquidity, borrowing capacity, and overall adoption across its core products, including Morpho Blue, Morpho Optimizers, and Morpho Midnight. TVL is calculated by aggregating supplied assets, collateral deposits, vault-level idle assets, and committed lend liquidity, while subtracting withdrawn assets and realized bad debt. By tracking these balances, the scale of capital efficiency and active lending activity within the Morpho ecosystem is quantified.

## 2. Data sources

- **Blockchain events**: `CreateMarket`, `Supply`, `Withdraw`, `Borrow`, `Repay`, `SupplyCollateral`, `WithdrawCollateral`, `AccrueInterest`, and `Liquidate` events from `Morpho Blue` contracts; `MarketCreated`, `SupplyCollateral`, `WithdrawCollateral`, `ClaimContinuousFee`, `Liquidate`, `Withdraw`, `Repay`, and `Take` events from `Midnight` contracts; `ReserveDataUpdated` events from `LendingPool` contracts; `Mint`, `Burn`, and `BalanceTransfer` events from `AToken` contracts; `Mint` and `Burn` events from `VToken` contracts; `PostTotalShares` events from `Oracle` contracts; `TokenRebased` events from `stETH` contracts; `IndexesUpdated` events from `AaveV3Morpho` contracts; `P2PIndexesUpdated` events from `AaveInterestRatesManager` and `InterestRatesManager` contracts; `P2PTotalsUpdated` events from `AaveV3Morpho` contracts; `P2PAmountsUpdated`, `Borrowed`, `Repaid`, `BorrowerPositionUpdated`, `Supplied`, `Withdrawn`, and `SupplierPositionUpdated` events from `EntryPositionsManager`, `ExitPositionsManager`, and `PositionsManager` contracts; `CreateMetaMorpho` events from `MetaMorphoVaultFactory` contracts; `CreateVaultV2` events from `VaultV2Factory` contracts; `SetCurator`, `SetName`, `SetSymbol`, `SetFee`, `SetPerformanceFee`, and `SetManagementFee` events from `MetaMorphoVault` and `VaultV2` contracts; and ERC-20 token transfers and native asset transfers, covering Ethereum, Base, Arbitrum, Optimism, and 15 other chains
- **External data**: End-of-day price feeds for deposited and collateral assets, and asset metadata

## 3. Step-by-step calculation

### Component A: Morpho Blue balance tracking

- **Purpose**: Track supply and collateral balances for Morpho Blue markets
- **Logic**: Market parameters are mapped using `CreateMarket` events. Supply and collateral balances are tracked by aggregating `Supply`, `Withdraw`, `SupplyCollateral`, and `WithdrawCollateral` events. Interest accruals are incorporated using `AccrueInterest` events, by which the supply asset balance is increased. Liquidations are processed using `Liquidate` events, through which the borrower's debt is reduced and collateral is seized. Exploited or distorted markets are excluded using a predefined denylist, and cbBTC markets on Base are filtered to include only whitelisted market IDs.

### Component B: Morpho Optimizers balance tracking

- **Purpose**: Track active deposits and loans for Morpho Optimizers
- **Logic**: For Aave V3 and Aave V2 optimizers, active deposits are calculated by aggregating `Mint`, `Burn`, and `BalanceTransfer` events from `AToken` contracts, scaled by the liquidity index updated via `ReserveDataUpdated` events. For the Compound optimizer, balances are tracked by aggregating ERC-20 token transfers and native asset transfers to and from the Morpho Compound account, with underlying deposits calculated using the exchange rate derived from asset prices. Active loans are tracked by aggregating `Mint` and `Burn` events from `VToken` contracts, scaled by the variable borrow index. For P2P optimizers, outstanding P2P loans are tracked using P2P loan updates and index updates, with a weighted average applied based on block duration.

### Component C: Morpho Midnight balance tracking

- **Purpose**: Track collateral, supply, and borrow balances for Morpho Midnight
- **Logic**: Markets are mapped using `MarketCreated` events. Collateral balances are calculated by aggregating `SupplyCollateral`, `WithdrawCollateral`, and `Liquidate` events. Loan supply balances are calculated by aggregating `Repay`, `Liquidate`, `Withdraw`, and `ClaimContinuousFee` events. Borrowed balances are calculated by aggregating `Take`, `Repay`, and `Liquidate` events. Committed lend liquidity (open offers) is tracked using daily snapshots of signed committed assets.

### Component D: Vault-level idle assets tracking

- **Purpose**: Track idle assets held within Morpho vaults
- **Logic**: Vault creations and configurations are tracked using `CreateMetaMorpho`, `CreateVaultV2`, and configuration change events. Idle assets, which consist of deposits not yet allocated to any Morpho market, are tracked for V2.0 vaults. For Monad, idle assets are reconstructed as the cumulative sum of ERC-20 token transfers in and out of each vault. For other chains, idle assets are sourced from daily state calls of the vault's raw balance of its underlying asset.

### Component E: USD conversion and final aggregation

- **Purpose**: Normalize balances to USD and aggregate daily TVL
- **Logic**: Daily net changes in TVL are calculated for each asset across all products. Cumulative balances are reconstructed by summing daily deltas over time. Native asset balances are normalized by decimal precision and converted to USD using end-of-day price feeds. Daily TVL is aggregated by chain and product, with missing days filled forward to ensure a continuous time series.

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

MorphoMORPHO

Total value locked

Total value locked

Competitive landscape

Chain breakdown