Original Title: Curators Explained
Original Author: @MerlinEgalite
Compiled by: Peggy, BlockBeats
Editor’s Note: As DeFi shifts from high-yield-driven to competition in systems and infrastructure, Morpho is attempting to reshape the organization of on-chain lending through its Vault and Curator mechanisms. From a platform perspective, this article introduces the role of Curators and their non-custodial, programmatic operational logic.
Below is the original text:
What is a Curator?
A Curator is an independent team or entity, not part of Morpho’s official team—responsible for designing, deploying, and managing on-chain Vaults.
From a macro perspective, the Curator’s job is to package diversified portfolios into user-friendly, easily integratable Vault products.
Specifically for Morpho Vaults, these Vaults are essentially portfolios composed of a set of over-collateralized lending positions. This structure allows users to: complete deposits through a single entry point; obtain yields with one click; delegate ongoing risk management and portfolio construction work to the Curator.
In traditional finance, the closest role to a Vault Curator is an asset manager or fund manager. Both are responsible for strategy formulation and risk management, but there are important fundamental differences: Vault Curators are non-custodial, execution is fully automated through smart contracts, transparent throughout, and does not rely on human intermediaries.
In Morpho Vaults, Curators can never take over or custody user funds. What they do is execute predetermined strategies by programmatically configuring the Vault.
Users are free to deposit or withdraw funds at any time, requiring no one’s approval, with no possibility of being artificially blocked; ownership and control of assets always remain in the user’s own hands.
Curator’s Business Model
Curators can be compensated through: management fees; performance fees.
The specific fee structure is set by the Curator themselves and can be configured for different Vaults, but must adhere to preset maximum fee caps.
Some Curators choose lower fees; others rely on their historical performance or differentiated strategies to charge higher fees. These decisions are entirely up to the Curator and are unrelated to Morpho.
Additionally, Curators can collaborate with distributors (such as fintech companies or platforms), distributing fees generated from certain specific deposits between the Curator and the distributor through revenue sharing.
Although the Curator’s business model is formally similar to that of traditional asset managers, there is a key difference: the operating costs of Vaults are far lower than those of traditional funds or asset management platforms.
Vaults replace the massive back-office systems of traditional asset management with a few hundred lines of free, open-source code. The vast majority of processes are automated, everything runs on-chain in real-time, eliminating the need to wait for quarterly reports.
Therefore, Curators are often able to charge lower fees than their traditional finance counterparts while maintaining considerable profit margins.
How to Evaluate a Curator (Non-Exhaustive List)
For corporate institutions, the method of evaluating a Curator should not be unfamiliar. It is similar to evaluating traditional asset managers, but with one significant advantage: complete transparency.
Vaults are built on public blockchains; with various dashboard tools, detailed data for any Curator or Vault can be viewed in real-time.
Here are some key evaluation dimensions:
Track Record
What experience do they have in the DeFi field (and in traditional finance where relevant)?
Have they collaborated with well-known companies, fintech firms, or institutions?
How has their strategy performed across different market cycles, especially during stress tests?
How much total assets under management (AUM) do they currently manage across all Vaults?
While AUM itself does not guarantee quality, it is often a useful indicator of market trust and product fit.
Transparency & Methodology
Do they clearly explain asset allocation methods and risk control standards?
Have they established an internal risk rating system?
Do they disclose their response processes during market tightening or extreme events?
How are roles and permissions divided among various Vaults?
Do they follow strict operational security (OpSec) practices?
Do they provide any form of insurance or risk mitigation mechanisms?
Communications
Before depositing funds, one should pay attention to the Curator’s public channels, such as X (Twitter) and official websites.
Do they maintain proactive communication during both high-yield periods and market turbulence?
Do they regularly update Vault performance, asset allocation changes, and risk events?
Conflicts of Interest
Do they clearly disclose actual or potential conflicts of interest?
Do they have financial or governance relationships with certain protocols, investors, or counterparties that could influence allocation decisions?
As in traditional finance, responsible institutions should clearly explain the sources of conflicts and how they are managed.
By evaluating the above dimensions, institutions can select Curators whose strategic style, risk appetite, and disclosure standards match their own needs, while relying on the strong, immutable systemic guarantees provided by Morpho’s underlying infrastructure.
Note: The above list is not exhaustive. Some content applies to Morpho Vaults and their Curators but may not necessarily apply to other platforms or Vault systems.
