Protocol

Inheritance from Morpho Blue

Morpho Blue is a permissionless lending primitive: isolated markets with a loan asset, a collateral asset, an oracle, an interest rate model (IRM), and a liquidation loan-to-value (LLTV). Sharewoods retains those foundations on Robinhood Chain.

Just-In-Time (JIT) liquidity

Sharewoods retains Morpho Blue’s Just-In-Time matching mechanism.

• When a borrower requests liquidity, the protocol first attempts to match them directly with idle (unallocated) supply.
• If additional liquidity is required, the system can pull from allocated positions in a Just-In-Time fashion to fulfill the borrow while optimizing rates and utilization.
• This improves capital efficiency for both suppliers (higher effective yields) and borrowers (better rates) compared to pure pool-based models.
• JIT operates within the isolated market design and does not create cross-market risk.

Automated liquidity balancer

Sharewoods includes an automated liquidity balancer that functions as the curator and allocator for the supply vaults.

Target utilization

90.00%

Idle buffer

10.00%

• Target: continuously maintains approximately 90.00% utilization across the markets to which each vault allocates.
• The balancer dynamically adjusts allocations (and, where applicable, reallocations) of vault liquidity between idle cash and the underlying markets.
• Goal: maximize capital efficiency and sustainable yield for suppliers while keeping a 10.00% idle buffer for smoother withdrawals and reduced force-deallocation events.
• The balancer operates autonomously according to predefined rules; it does not change market risk parameters (LLTV, oracles, etc.), which remain immutable.

Sharewoods markets also use Morpho’s AdaptiveCurve IRM, which is designed to keep utilization near that target over time.

Robinhood Chain specifics

• All contracts are deployed on Robinhood Chain.
• The primary supply / loan asset is native USDG.
• Oracles rely on Chainlink price feeds available on Robinhood Chain.
• Gas efficiency and transaction finality follow Robinhood Chain characteristics.

High-level flow

1. User deposits USDG into Earn RWA Vault (swRWAUSDG, 10.00% perf. fee) or Classic Vault (swCUSDG, 5.00% perf. fee).
2. The automated liquidity balancer allocates / rebalances toward 90.00% utilization, with JIT matching into RWA and crypto markets.
3. Borrowers supply listed collateral and borrow USDG from the matching isolated market.

Markets & risk parameters

All Sharewoods markets follow the Morpho Blue isolated-market design. Each market is completely independent: a liquidation or bad debt event in one market cannot affect any other market.

Additional markets may be listed over time; each uses fixed risk parameters set at creation. Max LTV in the table is the interface borrow ceiling derived from LLTV ÷ minimum borrow health factor (1.05).

LLTV (liquidation loan-to-value)

When a position’s loan-to-value ratio exceeds LLTV, it becomes eligible for liquidation. Current vault defaults: Earn RWA Vault 86.00%; Classic Vault 86.00%.

Max LTV

Borrowers cannot open or increase a position beyond the max LTV enforced by the interface (LLTV scaled by the minimum borrow health factor). The buffer below LLTV provides a safety margin against sudden price movements before liquidation can occur.

These market parameters are immutable once a market is created, consistent with Morpho Blue’s design philosophy.

Oracle integration

All price feeds (collateral and loan assets) are sourced from Chainlink. Addresses below come from the current deployment JSON when recorded.

Security & audits

Sharewoods is built on Morpho Blue Vaults V2 contracts, an open-source, battle-tested lending primitive. The core logic of isolated markets, position accounting, JIT matching, and liquidation has been retained with implementation modifications required for Robinhood Chain, the listed vaults, the automated balancer, and the fee mechanisms (including a 1.00% force deallocation penalty when withdrawals pull allocated liquidity).

• Morpho Blue original audits: docs.morpho.org — Security / Audits
• Sharewoods-specific audit: to be published
• Formal verification / additional reviews: to be published

Always verify contract addresses on official Sharewoods channels before interacting. See also the Disclaimer.

Contract addresses

Addresses resolve from the active network deployment (local / testnet / mainnet). The vault address is also the ERC-4626 share token.

Glossary