Morpho Smart Contracts

Morpho is a permissionless, immutable lending protocol that provides the foundation for Tenor. Its contracts are minimal and non-upgradable, with isolated markets and configurable risk parameters. Because Tenor sits directly on top of Morpho, every Tenor market inherits the security properties of the Morpho contracts.

Its contracts have undergone multiple security reviews from leading security firms, and are covered by an active bug bounty offering up to $2,500,000 for critical findings. See Bug Bounty for details.

Isolated Markets

Each Tenor market is deployed as an isolated Morpho market with immutable parameters. Once a market is created, its LLTV, oracle address, loan token, and collateral token cannot be changed. This mitigates governance risk: no party can retroactively alter the terms of an existing market, and the parameters lenders and borrowers agree to at creation are the parameters they keep for the lifetime of the market.

Isolation also means risk in one market cannot propagate to another, and lets users configure markets to match their preferences by choosing the collateral, oracle, and LLTV that fit their risk profile rather than being limited to a single shared pool.