Recently, many people have misunderstood the modular lending of Morpho, and of course, there is a traditional Aave rhythm factor involved, while DeFi is also a world full of grudges. More likely, it is due to a lack of understanding of its mechanism. The modular lending represented by Morpho is not simply unlicensed lending or segregated pools. Non licensed lending gives people a feeling of chaos, while segregated pools seem to imply that fund efficiency is not as high as pool models. In fact, the non licensing of Morpho does not mean that the creator can do whatever they want. For example, if you want to curate your vault on the front-end of Morpho, the creator must obtain a whitelist, which requires multiple signatures and a basic time lock (7-day benchmark). This ensures at the contract level that the cursor does not suddenly add toxic markets, leading to runaway risks. Fund allocation can only be configured in the inbound market, which limits the risk range. In addition, the isolation pool and collateral cannot be lent out. For borrowers, compared to the pool model, the cost of funds may be slightly higher, but the customization is higher and the collateral ratio will also be higher. Therefore, these two factors have a certain offset. Due to the decoupling of deposits and loans, the deposit side relies on various vaults for fund aggregation and allocation, with the custodian as the manager. This is similar to a fund model, where the custodian will allocate funds for the incoming lending market and can also allocate idle funds, allowing authorized vaults with high market fund utilization rates to obtain additional fund allocation. This is somewhat similar to the discount window provided by the central bank to commercial banks for emergency fund allocation. These models actually provide highly customized deposit portfolios, as well as a highly modular and flexible lending market, which is a significant innovation in the DeFi currency market. Aave's self operated model is to control everything from top to bottom, so there is very little they can do and they can only focus on mainstream assets in large categories; And with the Morpho Taobao model, which covers all mainstream and long tail needs, it is more like a lending infrastructure, so Coinbase can deploy and use it directly. The self operated and Taobao models have their own advantages and disadvantages, it's not that there's no one else. The biggest mistake for Morpho in this synthetic asset explosion was providing excessive endorsement to the whitelist creator, leading to moral hazard. Depositors used this endorsement as collateral for Morpho. I estimate that in the future, they will strictly limit their front-end vault curation and encourage the curator to do the front-end themselves, removing this implicit endorsement and moral hazard.