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 Vault deposits Methodology

## 1. Overview

The total value of assets deposited into the vaults of Morpho Blue is measured by vault deposits. The total liquidity supplied by users to earn yield through automated allocation strategies managed by curators is reflected by this metric. By tracking the aggregate value of these deposits, the overall growth, adoption, and liquidity depth of the Morpho Blue vault ecosystem can be evaluated.

## 2. Data sources

- **Blockchain events**: `CreateMetaMorpho` events from `MetaMorphoVaultFactory` contracts, `CreateVaultV2` events from `VaultV2Factory` contracts, `CreateMorphoVaultV1Adapter` events from `MorphoVaultV1AdapterFactory` contracts, ERC-20 `Transfer` events for vault share assets, and state reads for total assets and lost assets, covering Ethereum, Arbitrum, Base, Optimism, and 14 other chains
- **External data**: End-of-day price feeds and asset metadata for underlying assets

## 3. Step-by-step calculation

### Component A: Morpho Blue vault share tracking

- **Purpose**: Track the daily cumulative share balances of users in each vault
- **Logic**: Vault creations are identified using `CreateMetaMorpho` events from `MetaMorphoVaultFactory` contracts and `CreateVaultV2` events from `VaultV2Factory` contracts. Daily net flows of vault share assets are parsed from ERC-20 `Transfer` events and aggregated to calculate cumulative daily share balances for each user. Users that are identified as Morpho vaults themselves, using `CreateMorphoVaultV1Adapter` events from `MorphoVaultV1AdapterFactory` contracts, are excluded from the balance summation to prevent double counting.
- **Key fields**: `vault_address`, `user_address`, `amount`

### Component B: Morpho Blue deposit index calculation

- **Purpose**: Determine the exchange rate between vault shares and underlying assets
- **Logic**: Total assets are retrieved from daily state reads of the vaults. For V1.1 vaults, lost assets are retrieved from state reads and subtracted from the total assets to calculate net total assets, while for V1.0 and V2.0 vaults, lost assets are treated as zero. The total supply of vault shares is calculated by summing all positive user share balances. The deposit index is calculated by dividing the normalized net total assets (plus a small constant for numerical stability) by the total supply of shares (plus the same constant).
- **Key fields**: `total_assets`, `lost_assets`, `total_supply`

### Component C: Morpho Blue vault deposits valuation

- **Purpose**: Calculate the total deposits in terms of the underlying asset
- **Logic**: The total share balance of each vault is multiplied by the daily deposit index to determine the vault deposits in raw units of the underlying asset. The raw asset amounts are normalized by the decimal precision of the underlying asset.
- **Key fields**: `total_shares`, `deposit_index`, `underlying_token_address`

### Component D: USD conversion and aggregation

- **Purpose**: Convert the normalized asset deposits to USD and aggregate them
- **Logic**: Daily changes in vault deposits are calculated by taking the difference between consecutive days. Cumulative vault deposits are reconstructed and forward-filled to ensure continuous daily coverage. The normalized asset balances are multiplied by end-of-day asset prices to determine the USD value of the deposits, which are then aggregated by day, chain, and product.
- **Key fields**: `vault_deposits`, `price_usd`

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

Total amount of deposits held in protocol vaults.

MorphoMORPHO

Vault deposits

Vault deposits

Competitive landscape

Chain breakdown