by @Intern_frgmntfi · unofficial
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Explainer
Where does a deposit go?
One USDC deposit, from your wallet to the borrower — and back as yield.
1
You deposit USDC
Into a frgmnt vault on Morpho (Base). Non-custodial — your wallet stays in control.
2
The vault allocates it
Across Morpho lending markets, with a cap per market. Supply only — zero leverage on the vault side.
3
Borrowers post collateral
Worth more than they borrow (e.g. Coinbase tokenized stocks). Overcollateralized.
$
Interest (+ rewards) flows back
Borrowers pay interest; some markets add Merkl rewards. That’s the APR — and why it moves.
!
If collateral falls
Positions can be liquidated. That reduces risk to lenders — it doesn’t erase it.
Live markets
See every market, cap and APR in the app before you connect.
Risks tap to expand
Educational only — not advice. Rates are variable. DeFi has smart-contract, collateral, liquidation and depeg risks.
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Curious what that rate means in dollars?