Morpho is a decentralized, non-custodial lending protocol that allows users to deposit assets to earn yield and borrow assets via over-collateralised markets. It stands out by providing isolated markets (so risk is compartmentalised) and permissionless market creation, giving developers and sophisticated users flexibility in how they lend or borrow.
The MORPHO token powers governance of the protocol via the Morpho DAO, enabling holders to vote on protocol upgrades, parameter changes and treasury decisions.