In light of recent undo @MorphoLabs FUD, I wanted to share some more insight into why our team at Felix chose to work with Morpho and will continue to build on Morpho: To date, there is no more scalable and risk-adjusted model to building money markets onchain than building on Morpho. This is in large part why arguably the most heavily-regulated crypto business globally, @coinbase, decided to integrate Morpho for Coinbase Crypto-Backed Loans and Coinbase USDC lending Why? Two main reasons: 1. Contract security 2. Risk segmentation The power of Morpho is the way that risk managers can segment risk–this is evident in how our team at Felix has structured the USDT0 Frontier and USDT0 Flagship vaults: both are USDT0 vaults, but one lends to slightly higher LTV markets and more novel collateral types (beHYPE, wHLP, etc) for users that are comfortable with that risk and want the (typically) higher yield. The monolithic pooled model, while having benefits when it comes to pooling liquidity, ultimately forces all lenders to accept the same risk profile, and exposes all lenders to all collateral assets accepted to the pool The failure of the past week is not on the part of Morpho but rather on the part of curators who did not do proper due diligence on xUSD before deciding to lend to this asset. However, curators that decided not to lend to this market were not impacted at all by the failure of the other curators (except via the social consequences of being affiliated, which led to withdrawals). No assets are “locked” in Morpho; some vaults have been near max utilization due to the withdrawals of liquidity as a result of FUD over the past 24hrs. But because of this, borrow rates are high, so a set of borrowers will likely repay, and in tandem supply rates are high, meaning new supply will enter–a natural market dynamic All in all, the Morpho protocol operates as intended, and this remains a classic case of DYOR before depositing assets with any curator + another reason why curators must become more public with the risks they are taking when lending to any collateral market gFelix, gMorpho