What is Morpho?

Morpho is a decentralized lending protocol that enhances capital efficiency on existing money markets like Aave and Compound. It introduces a hybrid model that combines peer-to-peer (P2P) matching with traditional lending pools, allowing borrowers to secure lower interest rates and lenders to earn higher yields than they would in conventional markets. When a direct match between lenders and borrowers is unavailable, the protocol seamlessly integrates with existing liquidity pools, ensuring continuous access to funds. This approach minimizes inefficiencies in interest rate spreads while maintaining the security and liquidity of established platforms.

What is the MORPHO token?

The MORPHO token is an ERC-20 token on the Ethereum network and serves as the governance mechanism for the protocol, enabling holders to vote on key parameters such as interest rate models, collateral requirements, and protocol upgrades. The protocol is designed to be non-custodial, meaning users retain control over their assets without relying on intermediaries. Morpho’s goal is to improve DeFi lending by making borrowing and lending more capital-efficient while maintaining the security and reliability of major lending platforms. There is a total supply of 1 billion units of MORPHO, with ~236 million units currently in circulation.

Risk statement

Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset. 

No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform. 

Wealthsimple has performed an assessment of whether MORPHO can be supported by Wealthsimple’s platform, including whether MORPHO is a security and/or a derivative and is being offered in compliance with securities and derivatives laws. 

We evaluated MORPHO based on publicly available information, including (but not limited to):

• The creation, governance, usage and design of MORPHO, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created MORPHO;
• The supply, demand, maturity, utility and liquidity of MORPHO;
• Material technical risks associated with MORPHO, including any code defects, security breaches and other threats concerning MORPHO and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them; 
• Legal and regulatory risks associated with MORPHO, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of MORPHO; and
• Statements made by regulators or securities regulatory authorities in Canada and other jurisdiction regarding whether MORPHO, or generally about whether the type of crypto asset, is a security and/or a derivative.

Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple’s original assessment of those assets, including Wealthsimple’s assessment of the application of securities and derivatives laws. Any significant changes relating to MORPHO may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support MORPHO.

Like all other crypto assets, there are some general risks to investing in MORPHO. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading MORPHO. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision). 

The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.

Last updated: April 15, 2025