🧵 Protocol of the Day: @MorphoLabs
Morpho is a trustless, permissionless lending protocol that enables isolated markets and efficient pooled lending without mutable contracts.

✅ Pros:
• Fully immutable contracts—markets and parameters can't be changed post-deployment
• Isolated markets—risk contained to individual lending pairs, not the whole protocol
• Audited and battle-tested—vetted by Spearbit and OpenZeppelin, no hacks to date

⚠️ Risks:
• Risk curator reliance – External managers rebalance funds, introducing trust assumptions
• Fee switch – Currently fee-free, but future DAO-activated fees could affect yields
• Oracle dependencies – Despite controls, price manipulation remains a protocol-level concern