# Morpho Total value locked Methodology

## 1. Overview

Total value locked (TVL) measures the aggregate value of assets deposited across Morpho Blue, Morpho Optimizers, and Morpho Midnight. Morpho Blue TVL includes both lender supply deposits and borrower-posted collateral across isolated lending markets. Morpho Optimizers TVL reflects deposits and active peer-to-peer matched loan balances routed into Aave V2, Aave V3, and Compound on Ethereum. Morpho Midnight TVL covers committed open offers, collateral, outstanding loan supply, and active borrow balances in fixed-term markets. Idle underlying assets held in MetaMorpho vaults are also counted, and markets identified as exploited or carrying bad debt are excluded from all components.

## 2. Data sources

- **Blockchain events**: `Supply`, `Withdraw`, `SupplyCollateral`, `WithdrawCollateral`, `Liquidate`, and `AccrueInterest` events from `Morpho Blue` contracts; `Mint`, `Burn`, and `BalanceTransfer` events from `AToken` contracts, and `ReserveDataUpdated` events from `LendingPool` contracts (Morpho Optimizers - Aave V2 and V3); `PostTotalShares` events from `Oracle` contracts and `TokenRebased` events from `stETH` contracts (stETH market rebase tracking); `P2PTotalsUpdated` and `IndexesUpdated` events from `AaveV3Morpho` contracts, `P2PAmountsUpdated` events from `EntryPositionsManager` and `PositionsManager` contracts, and `P2PIndexesUpdated` events from `AaveInterestRatesManager` and `InterestRatesManager` contracts (Morpho Optimizers P2P); `SupplyCollateral`, `WithdrawCollateral`, `Repay`, `Withdraw`, `ClaimContinuousFee`, `Take`, and `Liquidate` events from `Midnight` contracts; vault underlying asset balances via `balanceOf` state reads on V2.0 vault contracts; covering Ethereum, Base, Arbitrum, Optimism, Polygon, and 15 other chains
- **Scraper data**: Morpho's exclusion feed for market denylist updates covering bad-debt and exploited markets; daily committed lend liquidity snapshots for Morpho Midnight open offers
- **External data**: End-of-day price feeds for deposited and collateral assets

## 3. Step-by-step calculation

### Component A: Morpho Blue supply deposits and collateral

- **Purpose**: Compute end-of-day lender supply balances and borrower collateral balances across all Morpho Blue isolated lending markets
- **Logic**: `Supply` events from `Morpho Blue` contracts increase the market's total supply asset balance, while `Withdraw` events decrease it. `AccrueInterest` events add the accrued interest amount to the supply balance, reflecting interest growth owed to lenders. `SupplyCollateral` events increase and `WithdrawCollateral` events decrease per-borrower collateral balances, which are accumulated into a market-level collateral total. `Liquidate` events reduce the liquidated borrower's collateral by seized asset amounts and reduce the market's total supply balance by bad debt assets. Cumulative running balances are maintained per market and chain, with the last event within each day selected as the end-of-day snapshot. Markets present on the denylist - either hand-listed exploited or bad-debt markets, or entries sourced from Morpho's official exclusion feed - are dropped; offset rows are injected at each exclusion window boundary to zero and restore market balances accordingly. Amounts are normalized by decimal precision.

### Component B: Morpho Optimizers deposits and P2P active loans

- **Purpose**: Measure deposits and active peer-to-peer matched loan balances routed through Morpho Optimizers into Aave V2, Aave V3, and Compound on Ethereum
- **Logic**: For Aave V3, `Mint` and `Burn` events from `AToken` contracts filtered to Morpho's account address are used to compute a scaled principal balance. `BalanceTransfer` events from `AToken` contracts adjust the balance when Morpho's account is the sender or receiver. `ReserveDataUpdated` events from `LendingPool` contracts supply the current liquidity index, and active deposits are computed as the scaled principal balance multiplied by the current liquidity index. For Aave V2, the same approach applies; for the stETH market specifically, `PostTotalShares` events from `Oracle` contracts (Lido V1) and `TokenRebased` events from `stETH` contracts (Lido V2) supply the rebase ratio used to convert share balances into stETH amounts. For Compound, inflows and outflows of cTokens held by Morpho's Compound account are tracked from account-clustered ERC-20 transfer records; daily net cToken balances are converted to underlying quantities using the ratio of underlying to cToken prices from end-of-day price feeds. Peer-to-peer active loan balances are derived from `P2PTotalsUpdated` events from `AaveV3Morpho` contracts and `P2PAmountsUpdated` events from `EntryPositionsManager` and `PositionsManager` contracts; each balance is multiplied by the peer-to-peer borrow index sourced from `IndexesUpdated` events from `AaveV3Morpho` contracts and `P2PIndexesUpdated` events from `AaveInterestRatesManager` and `InterestRatesManager` contracts. Block-weighted average P2P loan balances are computed within each day and forward-filled across days with no updates.

### Component C: Morpho Midnight deposits, collateral, and active loans

- **Purpose**: Compute collateral, loan supply, active borrow, and open offer balances for Morpho Midnight fixed-term lending markets
- **Logic**: Signed deltas are accumulated from event logs across four balance types. Collateral balances increase on `SupplyCollateral` events and decrease on `WithdrawCollateral` events; seized asset amounts from `Liquidate` events further reduce collateral. Loan supply (lender-side principal) increases from `Repay` amounts and liquidation repaid units, and decreases on `Withdraw` and `ClaimContinuousFee` events. Active borrow balances are incremented by the `totalUnitsDelta` field from `Take` events, which represents the net change in aggregate outstanding debt per matched pair, and decremented by `Repay` unit amounts and by liquidation repaid units plus bad debt. Open offer balances - committed lend liquidity not yet matched to a borrower - are sourced from Morpho's daily scraper snapshots; the latest snapshot within each calendar day is used per chain, and days where no open offers were found emit no balance row. Daily cumulative sums are computed per market, token, and balance type. Amounts are normalized by decimal precision.

### Component D: Vault idle assets

- **Purpose**: Capture underlying assets held in MetaMorpho vaults not yet allocated to Morpho Blue markets
- **Logic**: For most chains, the vault's underlying asset balance is read via `balanceOf` state calls on V2.0 vault contracts at end-of-day block boundaries. For Monad, where historical state call archives are unavailable, the balance is reconstructed as a cumulative sum of signed ERC-20 transfers into and out of each vault, using account-clustered inflow and outflow transfer tables filtered to each vault's underlying asset. Self-transfers cancel and do not affect the reconstructed balance. Daily balances are forward-filled across days with no transfer activity to produce a continuous series.

### Component E: USD conversion and aggregation

- **Purpose**: Combine all TVL components and normalize to USD
- **Logic**: All components - Morpho Blue supply deposits and collateral, Morpho Optimizer deposits and P2P active loans, Morpho Midnight collateral, loan supply, active borrows, and open offers, and vault idle assets - are unioned into a single dataset. Asset quantities are normalized by decimal precision and multiplied by end-of-day price feeds. A daily delta TVL is computed as the change from each component's prior-day balance within each chain, product, market, and asset dimension. Cumulative TVL is reconstructed from deltas using a running sum and forward-filled for days with no balance activity.

*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.

Total value locked

Morpho

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.

MorphoMORPHO

Total value locked

Total value locked

Competitive landscape

Chain breakdown