Katana | Morpho — Lend, Borrow & Earn with DeFi Vaults
Learn how Morpho works on Katana: isolated lending markets, collateral, LLTV, borrowing, curated vaults, risk curators and yield management.
Morpho on Katana
Morpho is Katana’s core lending and borrowing application. Users can interact directly with isolated markets or deposit into curated vaults that allocate capital across markets on their behalf.
Isolated lending markets
A Morpho market defines a loan asset, a collateral asset, an oracle, an interest-rate model and a liquidation loan-to-value threshold. Lenders supply the loan asset. Borrowers deposit collateral and borrow up to the market’s risk limit.
Borrowing mechanics
Borrowing creates a collateralized debt position. Interest accrues on borrowed assets. If collateral value falls or debt grows enough to cross the liquidation threshold, the position can be liquidated. Borrowers should monitor both prices and utilization-driven rates.
Curated vaults
Vaults allow depositors to outsource market selection. Independent curators allocate capital among approved markets and set risk parameters. Curators do not eliminate risk; they define the strategy and limits used by the vault.
How Morpho connects to Katana
Morpho markets can use Katana assets, including productive bridge assets. Chain-Owned Liquidity can help strengthen lending liquidity, and core app incentive allocations can influence returns.
What to compare before depositing
Compare curator, accepted markets, total liquidity, utilization, borrow rates, supply rates, collateral quality and withdrawal liquidity. Yield should be treated as variable and market-driven, not fixed.
Frequently Asked Questions
What does Morpho provide on Katana?
Morpho provides isolated lending markets and curated lending vaults.
What is LLTV?
LLTV is the liquidation loan-to-value threshold that defines when a collateralized borrow position becomes liquidatable.
What does a vault curator do?
A curator selects approved markets and risk limits for a vault strategy.
Are lending yields fixed?
No. Supply and borrow rates change with market utilization, incentives and other conditions.