> For the complete documentation index, see [llms.txt](https://guides.instadapp.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guides.instadapp.io/protocols/morpho-optimizer.md).

# Morpho Optimizer

Morpho is a peer to peer matching protocol that works on top of existing lending protocols like Compound and AAVE.  *Previously called Morpho v2*

<figure><img src="/files/MqxgE0aMP16NKCB2oJTu" alt=""><figcaption></figcaption></figure>

### What is Morpho?

Morpho is a protocol layer built on top of popular lending protocols like Compound and AAVE. Morpho works by directly matching borrowings and lenders while utilizing lending protocols as sources of liquidity. Morpho optimizes the interest rate spreads for both borrowers and lenders.