In the past, when playing with DeFi lending, there were only two paths in front of me: either throw money into the big pool and slowly earn interest, or bet on small projects for high returns. Big pool? The efficiency is touching, with funds lying flat; small pool? It's exciting enough, but getting liquidated is quick.

Now there is a bolder idea - to create a lending system that can be scheduled at any time, requiring both a safety cushion and high efficiency. Morpho is following this approach.

Its logic is actually not complicated: the underlying layer connects to mature protocols (like Aave), which is equivalent to providing you with a safety net; the upper layer has set up a smart matching mechanism—when borrowing demand arises, the system directly matches it with the most suitable funding party. If it doesn't match? No worries, the money automatically flows back to the underlying pool to continue earning Interest. The result is that the funds are almost never idle; they move when they need to and remain steady when they should.

**What practical problems can this set of things solve?**

Here are three scenarios for you to understand:

**Scenario One: Emergency Liquidity**
A small company received an order, and the payment term is two months. Traditional loans? The procedures are cumbersome, and there is no time to waste. Through this type of agreement? In just a few hours, connect with lenders willing to lend for the short term, with transparent interest rates and automatic settlement upon maturity.

**Scenario 2: Utilization of Idle Institutional Funds**
A certain investment institution has some US Dollar stablecoins sitting idle, with no projects to invest in temporarily. In the past, they either deposited it in a bank to earn a pitiful interest or took the risk of entering high-risk pools. Now? They can put it into the treasury system, where the system automatically allocates based on market demand, yielding higher returns than banks and lower risks than small pools.

**Scenario Three: Flexible Strategies for Individual Users**
Ordinary users want to participate in lending but do not want to watch the market. This system allows you to set strategies: for example, "prioritize matching short-term borrowing needs, and if the yield is below X%, automatically transfer to the underlying pool." It's like hiring a fund manager that never sleeps.

The core advantage can actually be summed up in one sentence: **turning the multiple-choice question of "either safety or efficiency" into a solution of "both safety and efficiency"**. Money is not idle, risks are controllable, and it can be arranged according to actual needs at any time—this is the lending logic that can keep both institutions and individual investors willing to participate.