Morpho: A Decentralized Lending Platform Explained

Morpho is a decentralized lending platform that enhances traditional DeFi protocols by offering peer-to-peer connections between lenders and borrowers. Instead of relying solely on pooled liquidity, Morpho aims to directly facilitate these transactions, streamlining the process and improving its efficiency. This direct approach reduces discrepancies in borrowing and lending rates, allowing for greater capital utilization for all parties involved. How does Morpho work?