Rate Optimization
Morpho's core value proposition: better rates for both lenders and borrowers. By matching positions peer-to-peer, it captures the spread that pool-based protocols leave on the table. Use the sliders below to see how different pool conditions affect Morpho's improvement.
Rate Comparison: Pool vs Morpho
Pool Supply
2.0%
Pool Borrow
6.0%
P2P Rate
4.0%
Spread Captured
4.0%
Effective Lender APY
3.4%
Effective Borrower APY
4.6%
Yield Improvement Over Time
Pool Earnings
$200
Morpho Earnings
$340
Extra Earned
+$140
Improvement
+70%
Supply & Demand Curve
How pool utilization creates the spread that Morpho captures. Higher utilization means higher borrow rates but also a narrower spread - the P2P improvement is most valuable at moderate utilization.
Understanding the P2P Index Cursor
0%
Favor Lenders
P2P rate = pool borrow rate. Lenders get max improvement, borrowers get pool rate.
50%
Default (Midpoint)
P2P rate = midpoint of supply and borrow. Both sides benefit equally.
100%
Favor Borrowers
P2P rate = pool supply rate. Borrowers get max savings, lenders get pool rate.