Capital allocation on decentralized lending platforms

2026-08-25

AI Summary

本文研究了去中心化借贷平台上贷方如何在多个市场中分配固定预算，通过三种利率模型得出了解决方案，并指出在折线利率模型下，贷方和借方的最佳策略存在不对称性。

Abstract

This work complements our previous paper, which studies borrower-side strategies in decentralized lending markets, by focusing on lender-side capital allocation. We consider a lender who seeks to allocate a fixed budget across multiple markets sharing the same supplied asset. Accounting for the impact of supplied capital on lending rates, we derive closed-form solutions under three interest-rate models: linear, kinked, and adaptive (Morpho's AdaptiveCurveIRM). Backtests are conducted first on USDC and then on WETH Morpho lending markets on Ethereum. We also show that, under the kinked rate model, an allocation that brings a market exactly to the kink is never optimal on the lender side, whereas it can be optimal on the borrower side. This asymmetry may create tension between lenders and borrowers around the kink and thereby exacerbate rate volatility.

Problem

• decentralized lending
• capital allocation
• interest-rate models
• lender-side strategies

Innovation

• capital allocation
• decentralized lending markets
• interest-rate models
• kinked rate model
• rate volatility