Morpho

Morpho is a decentralized lending protocol that runs on public blockchains. It connects people who want to lend a crypto asset with people who want to borrow one, and it sets interest rates automatically from supply and demand in each market rather than through a bank or a broker.

Lenders supply an asset to a market and earn interest on it. Borrowers take a loan from that market and post collateral worth more than they borrow, which protects lenders if a loan is not repaid. The interest borrowers pay is what lenders earn.

Morpho is non-custodial, which means its open-source smart contracts hold the funds and no company can move them at will. Those contracts are public and have been independently audited. Like any on-chain protocol it still carries risk, including smart-contract risk and the market risk that comes with variable rates.