Morpho Blue
Morpho Blue is an open, isolated lending protocol where anyone can create a lending market with custom parameters - collateral type, loan asset, oracle, LTV, and interest rate model. Every market is independent: risk doesn't spread across the protocol.
How Isolated Markets Prevent Cross-Contamination
In a monolithic pool (left), all assets share a common risk pool - a collateral collapse affects every lender. In Morpho Blue (right), each market is self-contained. A bad loan in Market A cannot drain collateral from Market B.
Market Creator Simulator
Design your own isolated lending market. Set the collateral, loan asset, oracle, LTV, and IR model. The simulator calculates health factor, liquidation threshold, and estimated market behavior.
Liquidation Threshold Visualizer
Watch how price movements affect a borrower's health factor. When price drops below the liquidation threshold, the position can be seized. Adjust collateral amount and loan to see where danger begins.
Morpho Blue vs Aave vs Compound: Isolated Markets
| Feature | Morpho Blue | Aave Isolated | Compound |
|---|---|---|---|
| Permissionless market creation | OK Yes | X No | X No |
| Custom oracle per market | OK Yes | X No | X No |
| Custom IR model per market | OK Yes | X No | Partial |
| True risk isolation | OK Full | Partial | X No |
| Cross-market contagion | Impossible | Possible | Shared |
| IRB interest model | OK Yes | X No | X No |
| Minimum collateral requirement | Any (market-defined) | Per market | Global |