Market isolation in practice
Dynamo surfaces every active Morpho Blue market in a single, filterable list. Each market is a fully isolated lending pool, one loan asset, one collateral asset, one oracle, and one LLTV (Liquidation Loan-to-Value). Nothing that happens in one market can spill over into another.
- Predictable risk — you know exactly what oracle and LLTV governs your position
- No contagion — a collapse in a high-risk market does not affect your position in a low-risk one
- Composability — new markets can be permissionlessly created without modifying existing ones
How interest rates are determined
Rates in every market are driven by the interest rate strategy and utilization rate, the share of supplied assets currently being borrowed.Market parameters
Each market is configured with a set of parameters that determine how it behaves. You can inspect these on the market detail page.| Parameter | What it controls |
|---|---|
| Collateral asset | Which assets can be posted as collateral to borrow from this market |
| Loan asset | Which assets can be posted to earn APY or borrow against collateral. |
| Oracle price feed | The on-chain price source used to value collateral compared to the loan asset |
| LLTV (Liquidation Loan-to-Value) | The maximum loan-to-value ratio a borrower can reach before their position becomes eligible for liquidation. Set at market creation and immutable. |
| Interest Rate Model (IRM) | The contract that determines how borrow and supply rates respond to utilization. Morpho markets use an Adaptive Curve IRM by default. |
| Market ID | The unique 32-byte identifier (bytes32) derived from the market’s parameters on Morpho Blue. |
| Loan-to-Value (LTV) | The current ratio between a position’s borrowed value and collateral value. Borrowers must keep this below LLTV. |
| Liquidation Incentive Factor (LIF) | The bonus paid to liquidators when they repay a borrower’s debt, derived from the market’s LLTV. |
| Fee | The protocol fee charged on borrower interest, expressed as a percentage of interest accrued. |
| Total supply / Total borrow | The current aggregate amount supplied and borrowed in the market. |
Browsing markets
The Markets page shows all active markets with live data:- Supply APY — the annualized yield you earn as a supplier
- Borrow APY — the annualized cost to borrow from this market
- Utilization % — how much of the supplied liquidity is currently borrowed
- Available liquidity — the amount you can withdraw or borrow right now
Verified vs. unverified markets
Dynamo is permissionless, anyone can create a lending market for any asset. Markets go through a verification process that checks oracle reliability, collateral parameters, and contract integrity before being added to the website.Market isolation
Each market is fully isolated. A bad debt event or an oracle failure in one market does not spread to any other market. Your exposure is limited to the markets you choose to participate in.Because markets are isolated, your collateral posted in one market cannot be used to borrow from a different market. You must post collateral separately in each market where you want to borrow.