WHY MORPHO PAYS MORE THAN AAVE

Summary from the TLDR Crypto newsletter

Morpho's blue-chip USDC vaults have consistently delivered a ~150bps spread over Aave's USDC supply rate. Collateral optionality only explains part of it, while user composition (fewer protocols and more institutional/fintech partners on Morpho), concentrated liquidity, and differing market structure/partnership channels appear to drive the premium, though spreads have been shrinking as allocators grow comfortable with vault abstractions.