Providers / Morpho
Morpho
On-chain isolated lending markets
Permissionless Morpho Blue markets. Each market has its own LLTV and IRM. Major cbBTC/USDC markets use 86% LLTV. Other markets can differ (for example 62.5% LLTV on some non-BTC pairs). Midnight adds separate fixed-rate, fixed-term markets.
Best for: DeFi users who pick a specific market and accept on-chain liquidation rules.
Product and eligibility
Product type
DeFi revolving (Blue); fixed-term exists on Midnight
Collateral
Wrapped BTC variants (cbBTC, WBTC, LBTC, etc.) and other assets by market
Eligible borrowers
Anyone with a wallet (front ends may geo-restrict)
US availability
Protocol global; Coinbase UI is region-gated
Custody and counterparty
Custody model
DeFi smart contract
Protocol and smart-contract risk; wrapped-asset risk on BTC paths
Rehypothecation
PoR / audits / insurance
Morpho docs; market params immutable per market
Track record
Major DeFi lending protocol; Coinbase Borrow routes to Morpho
Call, cure, and liquidation
Notice, grace period, partial vs full sale, and fees all differ by provider.
1. Starting LTV
85%
2. Margin call
None protocol-enforced
3. Cure window
None protocol-enforced
4. Liquidation
86%
At 85% starting LTV, Bitcoin must fall about 1.2% for LTV to reach 86%.
- Max initial LTV
- Market-specific: borrow allowed up to just under that market’s LLTV (no single Morpho-wide max)
- Liquidation style
- Permissionless liquidate when LTV > LLTV; up to 100% of debt
- Liquidation fee
- Market LIF from LLTV (about 4.38% at 86% LLTV; higher at lower LLTVs)
- Collateral retrieval
- withdrawCollateral when position remains healthy (protocol)
Cost and terms
| Rate range | Blue: variable AdaptiveCurveIRM (utilization; ~90% target). Midnight: fixed rate, fixed term (separate product). |
|---|---|
| Origination fee | No standard Morpho Blue origination fee (front ends may add fees) |
| Prepayment fee | None at protocol layer |
| Renewal / refinance | N/A for open Blue positions |
| Minimum loan | None at protocol layer |
| Term options | Blue: open-ended. Midnight: fixed term by market. |
| Liquidation fee | Market LIF from LLTV (about 4.38% at 86% LLTV; higher at lower LLTVs) |
| Collateral retrieval | withdrawCollateral when position remains healthy (protocol) |
| US availability | Protocol global; Coinbase UI is region-gated |
| Unique features | Isolated markets; do not use one LTV for all Morpho; name the market when comparing |
Who this is best for
DeFi users who pick a specific market and accept on-chain liquidation rules.
Who should skip
You want one fixed CeFi rate card, USD wires, or a human margin desk.