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Credit Score Distribution - Morpho vs Others

Credit Score Distribution - Morpho vs Others

January 28th, 2025

Credit Score Distribution - Morpho vs Others

Morpho users, on average, are classified as higher risk compared to users of other DeFi protocols.

The average credit score for Morpho users is 551, lower than the average score of 633 for users across other protocols. The implication of a higher-risk user base is that the rate of liquidation will be higher.

By the end of December 2024, Morpho recorded the second-highest liquidation rate among all protocols at 6.4%.

Ideally, liquidation events should be minimized through measures like implementing a credit score system at the point of loan origination.

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