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Morpho's DeFi lending model relies on offchain fees and subsidies, not just onchain revenue, to sustain curators.

Protocol Fundamentals
25 Sep 2026
Crypto Briefing
View Source
Neutral
Morpho's DeFi lending model relies on offchain fees and subsidies, not just onchain revenue, to sustain curators.

Morpho's modular DeFi lending protocol separates lending mechanics from risk management, relying on external curators to manage risk. Despite surpassing $3 billion in deposits, curator contracts reveal that these curators depend heavily on offchain fees, subsidies, and token incentives to remain financially viable, not solely onchain fee revenue. This reliance raises concerns about the sustainability and concentration risks within Morpho's ecosystem, especially as curators manage multiple protocols and face volatile token incentives. Going forward, Morpho may need larger vaults, new fee structures, or acceptance of offchain revenue as a permanent business feature to maintain a competitive and stable curator ecosystem.

Morpho's challenges in protocol risk curation come alongside a broad positive trend in major cryptocurrencies on Pluang. For readers following crypto markets, here is Pluang's snapshot as of Sep 25, 2026 20:32 WIB: out of 50 major cryptocurrencies, 43 rose and 6 fell today. Notable movers include EOS at Rp12.649 with an 8.13% increase and a typical hold time of 87 days, Kusama (KSM) at Rp85.113 rising 8.03% with 57% sell order activity and a 79-day hold time, and Uniswap (UNI) at Rp174.842 up 7.54% with 54% sell order activity and a 65-day hold time.

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