Lending · MORPHO · $11B TVL. Screen grades as of November 12, 2026: Solvency A, Legitimacy AA, Growth A. Institutional traction (Coinbase loans); token unlocks still in progress.
| Input / Grade | July 27, 2026 | November 12, 2026 |
|---|---|---|
| TVL | $7.5B | $11B |
| 12-month TVL change | -10% | +55% |
| Worst 90-day drawdown | 25% | 8% |
| Drawdown scored | 25% (90-day only, v1.0) | 8% (worse of 90-day and 12-month, v1.1) |
| Solvency (credit grade) | BBB · 68 | A · 73 |
| Growth | BBB · 64.3 | A · 77.5 |
TVL figures: DefiLlama, parent-level listing. The July 27, 2026 TVL was an analyst estimate and may have used a narrower definition, so part of the TVL difference can be definitional. Only these three inputs were refreshed in the re-screen; sustainability, unlocks, risk, audits, team, delivery, governance, category share and momentum were left as the July 27, 2026 estimates. Since then, some of those inputs have been checked against public data (November 13, 2026); see Input Sources. Where that changed a scored value, the grades in the right-hand column include it.
Solvency screens at A (73 / 100), previously BBB in the July 27, 2026 screen. The worst 90-day TVL drawdown is 8% and 12-month TVL change is +55%. TVL stability is scored on the 90-day drawdown, which is the worse of the two. Sustainability ratio (1.5x) and risk quality (8 / 10) are carried over from July 27, 2026. Unlock pressure (16%) was taken from public data on November 13, 2026 (see Input Sources).
Legitimacy screens at AA (81 / 100). No Legitimacy input was refreshed in the November 12, 2026 re-screen, so the grade is unchanged from July 27, 2026. All four inputs are analyst judgment; the evidence behind each is linked under Input Sources.
Growth screens at A (77.5 / 100), previously BBB in the July 27, 2026 screen. TVL is $11B, +55% over twelve months (it was -10% at the previous screen). Momentum (7 / 10) is carried over from July 27, 2026. Category share (23%) was taken from public data on November 13, 2026 (see Input Sources).
Of the 11 scored inputs, 4 are taken from public data, 6 are analyst estimates with the evidence linked, and 1 is under review because the public data disagrees with the estimate or the definition is not settled. An input under review keeps its previous scored value until the review is published.
| Input | Scored Value | Status | Source Or Evidence |
|---|---|---|---|
| Sustainability ratio Solvency | 1.5x | Under review | DefiLlama: protocol revenue $0 over 12m, because Morpho charges no protocol fee; fees paid to lenders were $210.8M. Incentives released over 12m: about 5.8M MORPHO (about $11.4M). That is 0x on protocol revenue and about 18x on total fees, so the definition decides this input. The methodology does not yet say whether "revenue" means what the protocol keeps or all fees paid by users, so the July estimate is still the scored value. |
| TVL stability Solvency | 8% / +55% | Sourced | Worst 90-day drawdown and 12-month TVL change, from DefiLlama, parent-level listing, as of November 12, 2026. |
| Unlock pressure (next 12 months) Solvency | 16% | Sourced | Strategic Partners (+31.1M MORPHO), Contributors (+7.9M), Users and Distributors (+65.4M) and Market Makers (+1.0M) unlock over the next 12 months: 105.5M against 664.7M unlocked to date, 16%. The July estimate was 8%. |
| Risk quality Solvency | 8 / 10 | Estimate | Analyst judgment. DefiLlama's hacks database lists one incident: October 14, 2024, $250,000, an oracle misconfiguration in a third-party market built on Morpho Blue. |
| Audit coverage Legitimacy | 9 / 10 | Estimate | Analyst judgment. Security reviews are published by the protocol. |
| Team & transparency Legitimacy | 9 / 10 | Estimate | Analyst judgment. |
| Delivery vs stated roadmap Legitimacy | 9 / 10 | Estimate | Analyst judgment. |
| Governance & decentralization Legitimacy | 6 / 10 | Estimate | Analyst judgment. Voting record is public on Snapshot. |
| TVL 12-month trend Growth | +55% | Sourced | 12-month TVL change, from DefiLlama, parent-level listing, as of November 12, 2026. |
| Category market share Growth | 23% | Sourced | $10.64B of the $46.90B in DefiLlama's Lending category, 23%. The July estimate was 30%. |
| Momentum & users Growth | 7 / 10 | Estimate | Analyst judgment. Evidence: fees in the last 30 days were $29.0M, an annual run rate about 67% above the 12m total of $210.8M. |
"12m" is the twelve months to November 13, 2026. Token amounts are valued at DefiLlama prices on that date. Found an error? Tell us; corrections are published with a date.
The credit grade is Solvency A. Legitimacy is AA and the Growth outlook is A; the weakest axis is Solvency. These grades use TVL data as of November 12, 2026 and qualitative inputs from July 27, 2026.
The credit grade answers one question: can Morpho survive stress and pay its users back. Legitimacy (AA) and the Growth outlook (A) are published beside it and are never averaged into it. Weakest axis: Solvency.
| Protocol | Solvency | Legitimacy | Growth |
|---|---|---|---|
| Morpho (this page) | A | AA | A |
| Aave | A | AA | BB |
| JustLend | A | BB | BBB |
| Spark | A | A | BB |
| Kamino | BBB | BBB | B |
| Compound | BBB | A | B |
| Venus | A | BB | CCC |
| Suilend | BB | BB | CCC |
| Euler | BB | A | B |
| Benqi | BB | BBB | CCC |
| NAVI | B | BB | CCC |
| Moonwell | BB | BBB | CCC |
Morpho has become the credible institutional challenger in on-chain lending. Its isolated-market architecture and vault curation model attracted the most significant distribution deal in DeFi lending — powering Coinbase's bitcoin-backed loans — and at $7.5B TVL it now holds roughly 30% of the lending category against Aave's incumbency.
Solvency screens at BBB, the gap to Aave being economics rather than engineering. The sustainability ratio (~1.5x) is thinner because the protocol is still in its growth-investment phase, and roughly 8% of supply unlocking over the next year creates real overhang. Drawdown resilience (~25%) and risk architecture — minimal, immutable core contracts — screen well.
Legitimacy screens at AA. Audit coverage is deep and the codebase is deliberately small and formally verified; the team is public, technically credible, and has shipped what it announced, including the V2 intent-based architecture. Governance concentration is the deduction, as MORPHO distribution is still maturing.
Growth screens at BBB with the best trajectory profile among major lenders: TVL down only ~10% in a down market, share rising, and momentum 7/10 on institutional integrations that are contracted rather than speculative. The unlock schedule is the counterweight — growth must outrun dilution.
Composite BBB. The screen's read: a protocol whose credit quality is improving on nearly every axis, with token-supply overhang the main thing separating it from the top tier. A strong candidate for early full-rating coverage.
