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The MorphoSupplyStrategy supplies the vault asset to exactly one Morpho Blue lending market, fixed at initialization. Funds come back to the vault only through settle(). It is deployed on Robinhood Chain (4663); see Deployments.

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What happens

Batch calls:
Settlement is all-or-revert. If the market cannot pay the full position back, Morpho’s own liquidity check reverts the withdrawal and settlement is retried later.

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Init checks

The init data is (address morpho, MarketParams marketParams, uint256 supplyAmount). The strategy resolves the vault’s TierRegistry through vault → governor → tierRegistry. Init reverts when: Execute re-checks both allowlists, the Morpho singleton and the market id. Settlement checks neither, so a de-listing cannot freeze supplied capital.
The market allowlist is per market id, owner-set on TierRegistry. A market that passes every other check still fails init until the registry owner has allowed its id. Read isMorphoMarketAllowed(id) before you propose; the CLI preflight reports the failure by name.

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Propose

The CLI resolves the market’s parameters from its id, then runs every _initialize check on-chain before sending anything, and reports all failures in one message.
The template is uncertified at launch, so the proposal prices at full notional on both legs for coverage and the proposer bond.

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Choosing a market

This strategy supplies one Morpho Blue market. It cannot deposit into a Morpho (V2) vault. A curated vault’s APY can come from idle cash or rewards that a single market doesn’t pay, so compare markets, not vaults. sherwood sources get morpho --amount <usd> (see Data feeds) ranks every USDG market and returns recommended.pick with its market_params and reasons. A market is eligible when:
  • it has no RED Morpho warnings,
  • its supply APY is above zero,
  • its withdrawable liquidity is at least the larger of $250k and 5× the amount,
  • its utilization is below 99%.
Eligible markets are scored by APY × a liquidity factor × a utilization factor. The utilization factor penalizes markets above 92%. Stock-collateral markets are often 100% utilized, which means $0 withdrawable, so they come back as rejected with the reason. --market-id recommended uses the pick directly. The pick is a starting point, not advice, and it is not the allowlist: check the market yourself and confirm its id is allowed on TierRegistry before proposing.

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Risk notes

  • Liquidity risk at exit. If borrowers have taken most of the market’s supply, settlement reverts until liquidity returns. The vault stays locked while the proposal is open.
  • Market risk. Supplied capital is exposed to the market’s bad debt, which depends on its collateral, oracle and LLTV. Read the market parameters the CLI prints before you propose.

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Addresses

The MorphoSupplyStrategy template (MORPHO_SUPPLY_TEMPLATE) and the Morpho Blue singleton (MORPHO_BLUE) on Robinhood Chain are listed on Deployments. The allowlisted market ids are read from TierRegistry.isMorphoMarketAllowed.