# Morpho Blue Fees Methodology

## 1. Overview

Fees are measured as the total value paid by borrowers as interest on Morpho Blue. The economic value generated by the lending markets of the protocol is represented by this metric. Interest is accrued continuously on active loans and is denominated in the respective loan assets. These accrued interest amounts are subsequently normalized and converted to USD to represent the total fees generated by Morpho Blue.

## 2. Data sources

- **Blockchain events**: `AccrueInterest` and `CreateMarket` events from `Morpho Blue` contracts, covering Ethereum, Base, Arbitrum, Polygon, and 13 other chains
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Morpho Blue market metadata mapping

- **Purpose**: Map Morpho Blue market identifiers to their respective loan and collateral assets
- **Logic**: `CreateMarket` events from `Morpho Blue` contracts are parsed to extract the market identifier, loan asset address, and collateral asset address. On Base, a whitelist is applied to restrict cbBTC markets to authorized market identifiers.
- **Key fields**: `market_id`, `loan_token_address`, `collateral_token_address`

### Component B: Morpho Blue interest accrual extraction

- **Purpose**: Capture the interest accrued on active loans for each market
- **Logic**: `AccrueInterest` events from `Morpho Blue` contracts are parsed to extract the interest accrued since the last update. These interest amounts are associated with the loan asset of the respective market.
- **Key fields**: `market_id`, `interest`

### Component C: Morpho Blue market filtering and denylisting

- **Purpose**: Exclude exploited, misconfigured, or distorted markets from the fee calculations
- **Logic**: Markets identified as having oracle issues, bad debt, or token-inflation exploits are matched against denylists and excluded from the final aggregation. Specific markets on Ethereum, Base, and Arbitrum are excluded under these rules.
- **Key fields**: `market_id`, `chain_id`

### Component D: USD conversion and aggregation

- **Purpose**: Normalize interest amounts by decimal precision and convert them to USD
- **Logic**: Accrued interest amounts are divided by the decimal precision of the respective loan asset using asset metadata. The normalized values are then multiplied by end-of-day asset prices to obtain the USD-denominated fee values. Daily values are aggregated using UTC day boundaries.
- **Key fields**: `interest`, `decimals`, `price_usd`

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

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Lending

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.

Morpho Blue

Fees

Fees

Chain breakdown