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Enzyme Integrates with Morpho to Unlock Enhanced Yield Opportunities in DeFi

Enzyme partners with Morpho to offer asset managers access to optimised yield opportunities through seamless, peer-to-peer decentralised lending.

We are delighted to announce that Enzyme has now integrated with Morpho, a transformative protocol built on top of renowned lending pools like Compound and Aave. With this collaboration, Enzyme’s asset managers can now use Morpho to enhance yields while preserving the same liquidity, liquidation guarantees, and risk parameters associated with the underlying protocol.

What is Morpho?

Morpho is an innovative peer-to-peer layer that significantly enhances the capital efficiency of leading lending pools such as Compound and Aave. It accomplishes this by implementing a unique mechanism that seamlessly matches lenders and borrowers on a peer-to-peer basis. As a result, Morpho can offer improved rates, thus optimising the lending experience while maintaining the same liquidity, liquidation guarantees, and risk parameters of the underlying protocol.

At its core, Morpho operates as a lending pool optimizer. It ensures that users interact with Morpho-Aave or Morpho-Compound the same way they would with the native Aave or Compound protocols. This means users still have access to billions of dollars ready to be borrowed or withdrawn, while also enjoying the same collateral factors, oracles, close factors, etc. The fundamental difference lies in the enhanced rates that Morpho can offer to both borrowers and lenders.

Morpho’s innovative approach solves the spread problem prevalent in current lending protocols. On platforms like AAVE or Compound, the spread between interests paid by borrowers and those earned by suppliers is substantial due to the liquidity pool mechanism. Morpho mitigates this issue by matching supplied liquidity with demand peer-to-peer, enabling lenders to receive interest payments corresponding to those paid by the borrower(s) they are paired with. This shift from socialised to peer-to-peer rewards results in higher capital efficiency and improved rates for all users.

In essence, Morpho stands as an optimised gateway to decentralized lending, providing a more profitable alternative for users seeking to borrow or lend via their favourite lending pools. By choosing Morpho users can enhance their yield generation while preserving the familiarity and assurance of the original protocols.

Why should you use Morpho?

The world of DeFi is an ecosystem of infinite potential and diverse opportunities. Yet, unlocking this potential and capitalising on these opportunities can be a complex task. This is where the integration of Morpho and Enzyme comes into play, combining the strengths of two powerful DeFi platforms to deliver an unrivalled asset management experience.

As an asset manager, your priority is to maximise returns while minimising risks. Efficiency, flexibility, simplicity, and safety become the cornerstones of your investment strategy. The fusion of Morpho’s innovative peer-to-peer lending mechanism with Enzyme’s robust suite of asset management tools offers exactly that.

So, what can asset managers expect when they use Morpho on Enzyme? A wealth of benefits that revolve around four core principles:

  1. Improved rates: Positions on Morpho are more capital efficient thanks to seamless peer-to-peer matching. This leads to better APYs for asset managers and increases overall returns.
  2. Attractive Risk-Adjusted Returns: Morpho improves rates without changing the underlying risk. As an asset manager, you always receive a rate equal to or better than the underlying pool, while maintaining the same risk parameters and liquidation guarantees.
  3. Intuitive Integration: With Enzyme’s robust front-to-back execution and order management system, users can add Morpho positions to their portfolio in a few clicks.
  4. DAO Treasury Management: Enzyme’s programmable risk management and trader delegation tools means DAOs can outsource the operations of their treasury to one or more asset managers and can add Morpho into existing strategies while maintaining their risk controls.

How do I get started?

To start leveraging Morpho’s enhanced yield capabilities on Enzyme, follow these steps:

  1. Connect your wallet to the Enzyme platform
  2. Navigate to DeFi Protocols, then select Morpho
  3. Asset managers can then use Morpho to secure enhanced yields on popular liquidity pools
  4. For more detailed information, please visit our documentation here


As the DeFi space continues to evolve, the team at Enzyme is committed to providing asset managers with the tools they need to maximise their yield opportunities. Our integration with Morpho is a testament to this commitment, enabling access to optimised rates for lenders. Embrace this new era of asset management with Enzyme and Morpho, where safety and efficiency meets innovation.

With Enzyme’s v4 Sulu, it’s never been easier for managers to create custom on-chain asset management strategies, access dozens of DeFi d’Apps and trade 250+ digital assets in one simple, trustless, and efficient platform.

At Avantgarde, we help institutional investors, crypto-natives and DAOs get exposure to DeFi investment opportunities.

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