MetaMorpho V2

MetaMorpho V2 is a vault standard that sits on top of Morpho Blue, aggregating depositor capital and allocating it across multiple isolated lending markets. Vaults are ERC-4626 compliant. Depositors receive shares that accrue value as the underlying markets pay interest. The vault itself doesn't set rates or hold collateral. It routes supply into markets that already exist on Morpho Blue.

Four roles govern a V2 vault. A curator sets supply caps per market and defines the queue; an allocator executes rebalances within those caps; a guardian can veto pending changes; a sentinel can reduce risk reactively without waiting for the timelock. V2 adds two features that matter for institutional deployments: a maxRate cap that limits the APY passed to depositors (with excess flowing to a fee recipient), and a gate contract that enforces KYC or transfer restrictions at the vault level. Older lending designs handle allocation through governance votes on a single pooled market. MetaMorpho separates the aggregation layer from the risk layer, letting curators build differentiated books without changing the underlying protocol.

Rekord runs its LP-facing vault on MetaMorpho V2, using the gate contract for ERC-3643 permissioning and maxRate for institutional return caps.