Morpho Borrow - Morpho Loans
Morpho
Borrow against collateral
A Morpho loan is a borrow against collateral in a Morpho Blue market. You post the collateral the market accepts, draw the borrow asset, and pay the Morpho loan rate that market's utilization sets. It is a Morpho crypto loan: overcollateralized, floating-rate, and recorded on-chain. You do not sell the collateral to access liquidity.
Because markets are isolated, the terms you see belong to that pair only. A Morpho crypto loan in one market does not sit on a shared pool with unrelated collateral. That is the practical difference between lending with Morpho and depositing into a single money-market balance sheet. The rate can move. If utilization rises, the borrow rate rises with it.
Borrowers use Morpho loans to keep a position while spending or deploying the borrowed asset. The health of the loan depends on the collateral price and the market parameters, both of which are visible. If collateral value falls through the market's threshold, the position can be liquidated under those parameters. Reading them before you borrow is the whole of the risk check.
How to open a Morpho loan
- Choose the market. Match the collateral you hold to a Morpho Blue market that accepts it.
- Read the loan rate and the liquidation threshold. Morpho loan rates move with utilization.
- Supply collateral and borrow. Approve the collateral token, then sign the borrow.
- Watch health. Add collateral or repay if the price moves against the position.
Frequently asked questions
What is a Morpho loan?
A Morpho loan is an overcollateralized borrow in a Morpho Blue market. You post collateral, draw the borrow asset, and pay the market's Morpho loan rate. The position stays non-custodial.
How is the Morpho loan rate set?
By utilization in that market. When more of the supplied liquidity is borrowed, the rate rises. When utilization falls, the rate falls. It is not a protocol-wide average.
Do I give up custody to borrow?
No. Morpho lending is non-custodial. The collateral is locked by the market contract under the parameters you accepted. The protocol does not take your keys.