Morpho · interactive mechanism simulation

Depositors fund a curated vault → the curator allocates across isolated Morpho Blue markets → borrowers draw against collateral. Crash the risky market's collateral and watch bad debt stay isolated instead of spreading.
Depositors supply assets MetaMorpho vault curator allocates 30% risky Market: safe LLTV 77% · healthy Market: risky LLTV 86% · healthy Borrowers A blue-chip collateral Borrowers B volatile collateral Bad debt isolated
Vault TVL
0.0 ETH
Active loans
0
Vault utilization
0%
Bad debt (risky market only)
0.0 ETH
Parameters — edit me
1.2/s
30%
86%
3
Controls

Illustrative simulation. Defaults mirror the researched Morpho mechanism (immutable isolated markets, curator-allocated MetaMorpho vaults, isolated LLTV per market), but deposit sizes and timing are randomized for visualization — not live onchain data. Crashing the risky market's collateral demonstrates Morpho Blue's core property: bad debt stays ring-fenced in that market and never touches the safe market. Part of The Onchain Experiment Atlas.