The MetaMorpho vault standard
MetaMorpho is the standard vault layer for Morpho Blue. Every vault is:- Non-custodial — your funds are held in the vault smart contract, never by Dynamo or the curator
- Permissionless to create — any curator can deploy a vault targeting any set of Morpho markets
- Transparent — current allocations, market weights, and performance data are publicly visible on-chain
- Audited — the MetaMorpho contracts are independently audited; see the Morpho audit reports for details
Browsing vaults on Dynamo
The Vaults page lists all active MetaMorpho vaults available on Dynamo. Use the filters to find vaults that fit your goals:| Filter / Sort | What it shows |
|---|---|
| Curator | The entity managing the vault’s allocation strategy |
| APY | Current annualized yield — a blended rate across the vault’s market allocations |
| TVL | Total value locked — larger TVL signals more established, battle-tested vaults |
| Underlying asset | The token you deposit (e.g. USDC, WETH, WBTC) |
| Markets | The Morpho Blue markets the vault currently allocates to |
How vaults generate yield
When you deposit into a vault:- Your tokens are pooled with other depositors’ funds.
- The curator’s strategy allocates that pool across verified Morpho markets.
- Borrowers in those markets pay interest, that interest flows back to vault depositors.
- As market rates shift, the curator (or automated rebalancer) reallocates to maintain the best blended yield.
Comparing vaults
Not all vaults are equal. When evaluating a vault, consider:- Curator reputation — who manages the strategy and what track record do they have?
- Market diversity — is the vault spread across many markets or concentrated in one?
- APY stability — is the yield consistent or highly variable?
- Performance fees — some curators charge a fee on yield earned; this is disclosed on each vault’s detail page
- Underlying risk — review which Morpho markets the vault allocates to and their risk tiers on the Risk Dashboard
Vault APY is a blended rate and will fluctuate as market conditions change. Projected earnings shown in the UI are estimates based on the current APY.
How auto-rebalancing works
Curators monitor every market in real time. When yields shift, because utilization changes or new markets open, the vault reallocates funds to maintain the highest blended return.You deposit into a vault
Your assets are added to the vault’s pool. You receive vault shares representing your proportional stake.
Curators allocate across markets
The vault strategy distributes your deposit across verified lending markets based on their current APY and risk profile.
Rebalancing happens automatically
As market rates shift, the vault moves liquidity to maintain the best risk-adjusted yield. You don’t need to take any action.
Vault APY vs. market APY
A single market’s APY reflects its current utilization. Vault APY is a blended rate across multiple markets, which can be higher or lower than any individual market at a given moment. Over time, vaults tend to outperform a static single-market deposit because of market diversification.| Scenario | Single market | Vault |
|---|---|---|
| Market A utilization high | You earn market A rate only | Vault captures market A and others |
| Market A utilization drops | Your APY falls | Vault shifts to higher-yield markets |
| New high-yield market opens | No change for you | Vault allocates automatically |
Depositing and withdrawing
Select a vault
Browse available vaults on the Vaults page. Review the current APY, total deposits, and the markets the vault is allocated to.
Confirm the transaction
Approve and sign the transaction in your wallet. Your vault shares are minted immediately.
There is no lock-up period on vault deposits. However, if the markets the vault is deployed in have very high utilization, a small withdrawal delay is possible until liquidity frees up.