📈 Vaults
The simple way to earn. You deposit a single asset (e.g. USDC) and a vault curator allocates it across vetted markets to generate yield. Great for beginners: one click and you start earning passive income.
Beginner guide · DeFi · 2026
How to use Morpho
Morpho is a decentralized, non-custodial lending protocol. You can earn yield on your assets and borrow against collateral directly from your wallet, with no middleman. Below is a clear, step-by-step walkthrough.
- No sign-up — connect with a wallet
- You stay in control of your funds
- Transparent rates and terms
What is Morpho
Morpho is an on-chain protocol (Ethereum, Base, and more) that connects people who supply assets with people who borrow against collateral. "Non-custodial" means a smart contract handles the assets while your keys and control stay with you. The protocol has two core products:
⚖️ Markets
Isolated lending markets. Each market is a "collateral → loan" pair with its own price oracle and a maximum LTV parameter. This is where you borrow against your assets.
Key terms.
- Collateral — the asset you deposit to take out a loan.
- LTV / LLTV — loan-to-value ratio; cross the limit and your position gets liquidated.
- APY — the annual yield on a vault deposit.
- Health factor — how safe your position is: higher is safer.
Getting started: preparation
You need very little before your first transaction.
-
1
Set up a crypto wallet
Install MetaMask, Rabby, or Coinbase Wallet. Back up your secret recovery phrase offline and never share it with anyone.
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2
Fund your wallet
Send some ETH to cover network fees (gas) plus the asset you plan to use (for example USDC, ETH, or wstETH).
-
3
Open the app
Go to app.morpho.org. Always check the address bar to avoid phishing sites.
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4
Connect your wallet
Click "Connect", choose your wallet and network (Ethereum, Base, etc.). Approve the connection — signing is free and moves no funds.
- 5
Earn: deposit into a Vault
The simplest path for a beginner — deposit an asset and earn yield.
- 1
Open the Earn tab
In the app, select the Earn (Vaults) tab.
- 2
Choose a vault
Compare assets and APY. Review the curator, allocation, and the risks of each specific vault.
- 3
Click Deposit
Enter the amount you want to deposit.
- 4
Approve + Confirm
The first time, your wallet asks for token approval, then you confirm the deposit. Both are on-chain transactions with a network fee.
- 5
Earn yield
Yield accrues automatically. Withdraw any time via Withdraw — subject to available market liquidity.
Note: APY is variable and can change. Past performance does not guarantee future returns.
Borrow against collateral: Markets
Deposit collateral and borrow another asset without selling what you hold.
- 1
Open Borrow / Markets
Find a market with the "collateral → loan" pair you want.
- 2
Add collateral
Add collateral → approve → confirm. Your collateral backs the loan.
- 3
Borrow
Enter the amount. Don't borrow close to the LLTV limit — leave a buffer for price swings.
- 4
Watch your health
Monitor your health factor / LTV. If your collateral price falls, add collateral or repay part of the loan to avoid liquidation.
- 5
Repay the loan
Repay any time. Once repaid, you can withdraw your collateral.
Liquidation risk: if your position exceeds the allowed LTV, part of your collateral is sold at a penalty to cover the debt. Keep a safe buffer.
Risks and safety
DeFi gives you control, but also responsibility. Keep these in mind:
Smart contracts
Code can contain bugs. Stick to vetted markets and never deposit more than you can afford to lose.
Liquidation
A sharp drop in collateral price triggers liquidation. Keep a buffer and monitor your position.
Price oracles
A market depends on its price source. An oracle failure affects how collateral and loans are valued.
Phishing
Only use the app.morpho.org address. Never sign suspicious transactions.
Vault curator
Yield and risk depend on the curator's strategy. Review what a vault actually allocates to.
Your keys
Lose your recovery phrase and you lose your funds. Back it up offline, never store it in the cloud.
This site is for educational purposes only and is not financial, investment, or legal advice. Crypto assets are volatile; you can lose all of your invested capital. Make your own decisions and do your own research (DYOR).
Frequently asked questions
Is Morpho safe?
The protocol is non-custodial and audited, but nothing in DeFi is perfectly safe. Smart-contract, liquidation, and oracle risks remain. Start with small amounts.
Do I need to register or pass KYC?
No. You sign in by connecting a crypto wallet. No account or password is required.
What do the fees cost?
Morpho charges no entry fee. You only pay the network fee (gas), which depends on the blockchain and congestion. On networks like Base, fees are usually low.
Can I withdraw any time?
Usually yes, but vault withdrawals depend on available market liquidity. At high utilization, part of the funds may be temporarily unavailable.
How is a Vault different from a Market?
A Vault is for passive earning (deposit one asset, the curator manages it). A Market is for borrowing against collateral (you manage the position and risk yourself).
What happens during liquidation?
If your LTV crosses the market limit, part of your collateral is automatically sold at a penalty to repay the debt. To avoid it, add collateral or repay early.
Ready to try?
Start with a small amount and go from connecting your wallet to your first deposit.
Open Morpho ↗