Morpho started as an optimization layer on top of Aave and Compound, enhancing lending rates with its peer-to-peer matching algorithm. It has since evolved into a standalone financial infrastructure. The lending layer, Morpho Blue, facilitates the creation of efficient lending markets without requiring permission and enables the addition of modular layers on top, offering various risk profiles and specialized lending services. With its permissionless framework, adaptable incentive structures, and precise asset tracking, Morpho introduces new innovations to the DeFi lending landscape.