How matching & rates work $MORPHO 💝🔥
🌟🚀 Two layers of rates: the base pool rate, and (B) the P2P rate that $MORPHO computes for matched participants. 💰👾 Morpho sets P2P rates so matched lenders get a share of the spread 📈✨ and matched borrowers pay less than base pool borrow APR. 🔗⚡ The Yellow Paper formalises this: matching reduces the spread between ♥️💰 supply/borrow while preserving pool invariants (liquidity, liquidations). 🌟🚀
📈✨ Utilization & matching priority: 🔗⚡ Morpho maintains internal accounting of available P2P supply and demand per market.
📈✨ When utilization is high, 🔥💝 more matching occurs and P2P rates deviate more from base pool rates. ♥️💰 When utilization is low, transactions route to the pool and P2P benefits shrink. 🌟🚀