🏦Vaults & Markets
Vault (Deposit Asset)
Target Markets (Collateral / Loan Asset)
Loan to Value
Ethereum Vault (hWETH)
WSTETH / WETH
USDx / WETH WBTC / WETH
90% 90% 90%
USDC Vault (hUSDC)
WBTC / USDC WETH / USDC TitanX / USDC DragonX / USDC
ORX / USDC Auryn / USDC Horizon / USDC
90% 90% 75% 75% 75% 75% 75%
USDT Vault (hUSDT)
WBTC / USDT WETH / USDT TitanX / USDT DragonX / USDT
ORX/ USDT Auryn / USDT Horizon / USDT
90% 90% 75% 75% 75% 75% 75%
USDx Vault (hUSDx)
WBTC / USDx WETH / USDx TitanX / USDx DragonX / USDx
ORX / USDx Auryn / USDx Horizon / USDx
90% 90% 75% 75% 75% 75% 75%
These markets are shown for demonstration purposes only.
What Happens When You Deposit
Supply USDx to the protocol
Deposit USDx into the USDx lending market.
You become a lender, and your liquidity is made available to borrowers.
Receive a composable non-rebasing yield-bearing token: hUSDx
The protocol mints hUSDx (ERC-20) to represent your deposit.
Each hUSDx increases in value over time as interest accrues.
Your deposit earns yield
Morpho first tries to match you peer-to-peer with a borrower at the best possible rate.
Yield comes directly from borrower interest. A small performance fee is taken by Horizon and routed into the buy & burn mechanism.
Withdraw at any time
Redeem hUSDx for your original USDx + accrued interest.
Withdrawals depend on liquidity (as with all lending protocols), and may be temporarily limited if utilization is very high.
Key Features of Morpho’s Design
Non-rebasing tokens
You receive hUSDx ERC-20s (like hUSDx) that accrue value over time.
Peer-to-Peer matching
Morpho automatically optimizes your rate by matching you with borrowers directly.
Efficient capital
Unmatched liquidity earns yield via fallback pools.
Real yield
Yield comes from borrower interest.
Composable aTokens
You can use hUSDx in other protocols, just like any ERC-20.
TL;DR
You deposit USDx.
You get hUSDx, a yield-bearing token that appreciates in value over time.
Earn interest from borrowers.
Protocol takes a small fee to buy and burn Horizon.
You can withdraw any time (as long as there’s liquidity).
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