Average Utilization Morpho vs Industry

On average, Morpho's facility utilization is 61%, the highest among all protocols currently analyzed by Blockchain Bureau.

High utilization is generally associated with higher-risk lending, as the likelihood of liquidation increases significantly during market fluctuations.

An average utilization rate below 50% at the portfolio level is typically considered healthy. While Morpho's liquidation rate remains relatively low (refer to the following post on Morpho Liquidation), the observed utilization rate of 61% is considered high.

Note: Utilization is calculated as the ratio of Total Outstanding Balance to Total Collateral Deposited.

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