Curator's operations

Morpho has pioneered the concept of curated lending markets in DeFi, but its approach differs significantly from Gearbox's model. Below is a clear comparison of how curators function in each protocol:

Morpho: Active Capital Allocation

In Morpho, curators are active capital allocators. They:

  • Distribute depositors' funds across various yield-generating markets.

  • Operate within markets defined by immutable parameters, such as Loan-to-Value (LTV) ratios and oracles.

Gearbox: Risk Parameter Management

In Gearbox, curators have a more limited role, focusing solely on risk management. They:

  • Set risk parameters for markets, such as LTV ratios or liquidation thresholds.

  • Have no authority to move or allocate depositors' funds, which remain under user or protocol control.

Action
Gearbox
Morpho

Add exposure to new collateral

  1. Set collateral limit, LTV and oracle for a new token in Market

  2. Borrowers can now use pool's liquidity

  1. Add nonzero supply cap for existing market (LTV and oracle are pre-configured)

  2. Deposit vault's funds to the new market

  3. Borrowers can now use vault's liquidity

Modify collateral LTV or Price Feed

  1. Set new price feed

  2. Start ramp of LTV to target value

  3. Feed & LTV for old and new borrowers are changed

  1. Deploy a market with needed LTV and oracle and set nonzero supply cap for it

  2. Feed & LTV are changed only for new borrowers

  3. Start withdrawing liquidity from old market & push borrowers out by raising rate

Increase/decrease collateral-specific borrow rate

  1. Set a new collateral-specific rate in addition to IRM utilization rate

  1. Move vault's allocation in/out of the Market to move dynamic IRM

Enable 1-click leverage for a collateral

  1. Allow the list of needed adapters in the Market

  1. Contact contango or another strategy provider to integrate your collateral

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