Earlier versions of the Morpho lending protocol, including Morpho Optimizer and Morpho V1, were constrained by rigid collateral requirements, reliance on preset liquidity pools, and limited scalability tied to external lending platforms.

Quotes that support claims

Whereas the previous version of Morpho limited loans to single collateral types, V2 supports single assets, multiple assets, or entire portfolios as collateral, including RWAs and niche assets.

Foundational gaps: As the largest user of these lending pools, we realized they were not open, flexible, or stable enough to serve as a true foundation for onchain lending.