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General Questions

New to Dynamo Finance? These answers cover the basics, what the protocol does, how to connect, and what you can expect as a user.
Dynamo Finance is a non-custodial DeFi lending protocol. You can supply assets to earn interest, borrow against your collateral, and deposit into optimized vaults that continuously rebalance to capture the best available yields.Your funds are held by smart contracts on the blockchain, Dynamo DAO never has custody of your assets. All positions, rates, and risk parameters are transparent and verifiable on-chain.
No. Dynamo is permissionless. To get started, connect your Web3 wallet to the app. No email address, no password, no KYC, and no registration required.Your wallet address is your identity on the protocol.
Dynamo works with any Web3-compatible wallet. This includes MetaMask, Coinbase Wallet, and any wallet that supports WalletConnect. If your wallet can connect to DeFi applications, it will work with Dynamo.
The protocol does not enforce a minimum deposit. However, on Ethereum mainnet, gas costs for supplying and withdrawing can make very small deposits economically impractical, the transaction fee may exceed the yield earned on a small position.On lower-fee networks where Dynamo is deployed, smaller deposits are much more viable.
Your portfolio dashboard in the Dynamo app shows your current positions across all markets and vaults, accrued interest to date, and projected earnings based on current rates. All data updates in real time as interest accrues.
Your funds are held in smart contracts on the blockchain, not by Dynamo. If Dynamo as a DAO ceased to exist, the smart contracts would continue to exist on-chain.You can always withdraw your funds by interacting directly with the smart contracts or by visiting morpho.org, even if the Dynamo app is no longer available. This is a core property of the non-custodial design.

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Advanced Questions

These answers provide a deeper overview of the protocol architecture, core mechanics, and the onchain experience users can expect when interacting with the platform.
No. Dynamo Finance is fully non-custodial. Your assets are held by Morpho’s immutable smart contracts at all times, Dynamo DAO never has access to or custody of your funds. Only you can withdraw your assets by signing a transaction with your own wallet.
Yes. The underlying smart contracts are Morpho’s, which have undergone multiple independent security audits and are considered among the most battle-tested contracts in DeFi. You can review the audit reports on the Audits and Disclosure page.
  • A market is a single, isolated lending pool for a specific asset pair (e.g., USDC/ETH). You supply or borrow directly in that market at its current rate. Dynamo lets you deposit the loan asset directly into individual markets as well.
  • A vault is a managed strategy that automatically allocates your deposit across multiple markets to optimize yield. You deposit once and the vault rebalances on your behalf. Dynamo offers its own community-curated vaults on top of Morpho’s vault infrastructure.
New users typically start with a vault for simplicity; advanced users may prefer direct market deposits for precise control.
Yes. Dynamo Finance is fully mobile-compatible and works in any mobile browser that supports Web3 wallet connections. You can use:
  • In-app browsers of mobile wallets like MetaMask Mobile, Coinbase Wallet, or Trust Wallet.
  • WalletConnect to connect any mobile wallet to the Dynamo app in a desktop or mobile browser.
The Dynamo token is Dynamo’s native token. It is used for:
  • Governance — token holders participate in SubDAO decisions and contribute to Morpho governance votes.
  • Rewards — earn the Dynamo token through reward campaigns by supplying assets to the Dynamo vault.
Check the app for current reward campaigns and eligible vaults.
No. While Dynamo does provide a more powerful interface for Morpho, it is much more than that. Dynamo is a full-fledged SubDAO that:
  • Aggregates community voting power to actively participate in Morpho governance.
  • Deploys and manages its own community-curated vaults.
  • Runs its own token and reward programs.
  • Builds automation tools, advanced analytics, and features not available on Morpho.org.
No. Dynamo is fully permissionless. No account, email address, or identity verification is required. All you need is a Web3 wallet.
Yes. Both platforms interact with the same Morpho smart contracts. A position opened on Morpho.org is visible and manageable on Dynamo with the same wallet, and vice versa. You can also start earning Dynamo rewards on existing Morpho positions by simply connecting your wallet to Dynamo.

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Troubleshooting

Most issues on Dynamo fall into a handful of categories. The answers below walk through the likely cause and the steps to resolve each one.
Failed transactions are most commonly caused by one of three things:
  • Insufficient gas: Your wallet sent the transaction with a gas limit too low to complete it. Try again with a higher gas limit. Most wallets let you adjust this in the transaction confirmation screen.
  • Network congestion: High network activity can cause transactions to fail or time out. Try again during a quieter period.
  • Low market liquidity: If you’re trying to borrow or withdraw and market utilization is very high, the transaction may fail because there isn’t enough available liquidity. Try a smaller amount or wait for borrowers to repay.
Check your wallet’s transaction history for the specific error — it usually points to the exact cause.
If market utilization is very high, most of the supplied liquidity may currently be lent out to borrowers. When that happens, withdrawals are limited to the liquidity that isn’t being borrowed.To work around this:
  • Try withdrawing a smaller amount, you may be able to withdraw part of your balance now.
  • Wait for borrowers to repay their loans, which frees up liquidity.
  • If you’re using a vault, the vault strategy automatically routes around low-liquidity markets and may be able to process your withdrawal sooner.
As utilization normalizes, your full withdrawal will become available.
Your health factor falls when the value of your collateral decreases, the value of your borrowed assets increases, or both. This can happen quickly during volatile market conditions.To bring your health factor back up, you have two options:
  1. Add more collateral: Supply additional assets to increase the value backing your debt.
  2. Repay part of your debt: Reducing what you owe increases your health factor directly.
Go to your portfolio page to see your current positions and take action. If your health factor approaches 1.0, liquidation is imminent, act quickly.
APY on Dynamo is variable. It updates continuously based on the utilization rate of each market, the ratio of borrowed assets to total supplied assets. As utilization changes, so does the interest rate.The APY displayed in the app reflects current conditions at the time you’re viewing it, not a fixed or guaranteed rate. Rates can change significantly between when you deposit and when you check your position later.This is standard behavior for DeFi lending protocols.
Blockchain transactions need to be confirmed before they appear in your portfolio. Depending on the network and current congestion, this can take anywhere from a few seconds to a few minutes.Steps to check:
  1. Open your wallet and look at your transaction history, it will show whether the transaction is pending, confirmed, or failed.
  2. Once the transaction is confirmed on-chain, refresh the Dynamo app.
  3. If the transaction is confirmed but still doesn’t appear, try a hard refresh of the page (Ctrl+Shift+R or Cmd+Shift+R).
If the issue persists after the transaction is confirmed, reach out through the official Dynamo support channels.
Liquidation occurs when your health factor falls to 1.0. At that point, a liquidator repays part of your outstanding debt to the protocol and receives a portion of your collateral in return, plus a liquidation penalty as an incentive.After a liquidation:
  • Your debt is partially or fully reduced.
  • A portion of your collateral has been transferred to the liquidator.
  • Any remaining collateral is still in your account and accessible.
Liquidation does not mean you lose everything, only the collateral needed to cover the repaid debt plus the penalty is taken.To avoid future liquidations, maintain a health factor well above 1.0 by keeping your borrow well below the liquidation threshold. See liquidations for a detailed explanation of how the process works.