> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dynamo.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# What Is Dynamo Finance?

> Dynamo Finance is a web3 lending market built on Morpho smart contracts, supercharged with advanced tools, automation, and additional rewards.

Dynamo Finance is a **web3 lending market built around the Morpho smart contracts**. It is non-custodial, permissionless, and designed for the next generation of on-chain finance.

At its core, Dynamo lets you do everything you can do on [Morpho.org](https://morpho.org), supply assets, borrow against collateral, and deposit into managed vaults, but it layers on advanced tooling, seamless automation, and additional rewards that Morpho alone does not provide.

## Built on Morpho

[Morpho](https://morpho.org) is one of the most battle-tested lending protocols in DeFi. It operates as a set of immutable, audited smart contracts that anyone can deploy markets on top of. Dynamo Finance uses Morpho as its smart contract layer:

* **Your funds are secured by Morpho's smart contracts**, not proprietary Dynamo code.
* Every market and vault you interact with on Dynamo exists on the same on-chain infrastructure as Morpho.
* Morpho's immutability means the core lending logic cannot be changed or upgraded by anyone, including Dynamo.

<Info>
  Dynamo is an interface and feature layer on top of Morpho, not a separate protocol with its own smart contracts managing your funds.
</Info>

## Dynamo as a SubDAO

Dynamo is far more than a simple new UI for Morpho. It is a **full-fledged SubDAO** within the Morpho ecosystem, actively steering the protocol through governance by aggregating the voting power and community of Dynamo token holders.

* **Governance participation** — Dynamo pools voting power from its community to participate meaningfully in Morpho governance decisions: market parameters, risk settings, protocol upgrades, and more.
* **Community aggregation** — by uniting lenders, borrowers, and yield seekers under a shared banner, Dynamo amplifies the collective voice of its users in shaping the direction of the broader Morpho ecosystem.
* **Dynamo vaults** — Dynamo deploys and manages its own curated vaults, offering optimized yield strategies built specifically by and for the Dynamo community.
* **Dynamo token** — Dynamo has its own native token used for governance, rewards, and incentive programs. Earn it by supplying to Dynamo vaults or participating in Dynamo reward campaigns.

<Tip>
  Because Dynamo is a SubDAO with real governance power, using Dynamo means you're not just a passive user — you're part of a community actively shaping how Morpho evolves.
</Tip>

## What Dynamo adds

While Morpho provides the secure foundation, Dynamo supercharges the experience:

| Layer                           | Provided by     |
| ------------------------------- | --------------- |
| Immutable lending markets       | Morpho protocol |
| Vault infrastructure            | Morpho protocol |
| SubDAO governance & voting      | Dynamo          |
| Dynamo-curated vaults           | Dynamo          |
| Dynamo token & reward programs  | Dynamo          |
| Risk dashboard and data science | Dynamo          |
| Advanced analytics              | Dynamo          |
| Position notifications          | Dynamo          |
| Automated position management   | Dynamo          |
| Enhanced UI & seamless UX       | Dynamo          |
| New features & integrations     | Dynamo          |

## What you can do with Dynamo

**Supply assets and earn yield.** Deposit tokens into verified lending markets and earn [morpho yield](https://dynamo.finance/) paid by borrowers. Rates adjust dynamically based on utilization, so you always see live APY data before you commit.

**Borrow against your collateral.** Supply assets as collateral and [borrow crypto](https://dynamo.finance/) at competitive rates. Dynamo displays your loan-to-value ratio and liquidation threshold in real time so you can manage risk with confidence.

**Deposit directly into individual markets.** Unlike the [Morpho.org](http://Morphi.org) interface, Dynamo lets you supply the loan asset directly into individual markets, giving you full control over exactly where your capital sits.

**Earn optimized yields through vaults.** Dynamo's own curated vaults automatically allocate your deposits across yield opportunities and rebalance as market conditions change.

**Automate your positions.** Auto-repay and auto-compound tools (coming soon) handle routine position management so you spend less time monitoring your loans.

**Access advanced tools and analytics.** A risk dashboard with global and per-market risk parameters, enhanced portfolio dashboard, and advanced market and vault filtering tools give you deeper visibility than any other Morpho interface.

**Earn Dynamo token rewards.** On top of standard Morpho yields, Dynamo occasionally runs its own reward campaigns, earn the Dynamo token by supplying assets into Dynamo vaults.

**Participate in governance.** As a Dynamo SubDAO member, your voice contributes to how Morpho evolves, market parameters, risk settings, protocol upgrades, and more.

## Key differentiators

* **SubDAO with governance power.** Dynamo aggregates community voting power to steer Morpho governance.
* **Own vaults and token.** Dynamo-curated vaults and the Dynamo token create a unique reward layer on top of Morpho's base yield.
* **Built on [Morpho](https://dynamo.finance/).** Every market and vault is backed by Morpho's battle-tested, immutable smart contracts.
* **Non-custodial.** Your funds never leave your control. Smart contracts hold assets, and only you can withdraw them.
* **No lock-up period.** Withdraw your supplied assets or repay loans at any time.
* **Transparent risk parameters.** Collateral factors, liquidation thresholds, and borrow caps are visible on every market.
* **Automated yield optimization.** Vaults handle rebalancing for you, no manual intervention required. Earn yield on your [cryptocurrency loans](https://dynamo.finance/) automatically.
* **Permissionless access.** No account, email, or KYC. Connect a wallet and start immediately.

## Who is Dynamo for?

<CardGroup cols={2}>
  <Card title="Lenders / Suppliers" icon="arrow-trend-up">
    Earn competitive interest on your idle assets. Choose individual markets or deposit into auto-optimized vaults for hands-off yield.
  </Card>

  <Card title="Borrowers" icon="hand-holding-dollar">
    Unlock liquidity from your crypto holdings without selling. Borrow against collateral at transparent, market-driven rates.
  </Card>

  <Card title="Yield Optimizers" icon="chart-line">
    Let Dynamo's vaults automatically route your capital to Morpho markets and compound returns over time.
  </Card>

  <Card title="DeFi Power Users" icon="bolt">
    Access advanced tools, real-time risk analytics, and automation features not available on Morpho directly.
  </Card>
</CardGroup>

## Core properties

* **Non-custodial** — Morpho smart contracts hold your assets. Dynamo never has custody.
* **Permissionless** — No account, email, or KYC required. A Web3 wallet is all you need.
* **Transparent** — All positions, rates, risk parameters, and vault allocations are verifiable on-chain.
* **No lock-up** — Supply, borrow, and withdraw at any time with no mandatory holding periods.