Boxes is a lending product. When you activate it, you lend your USDC, a stable digital currency, to borrowers through the Morpho protocol and earn variable yield in return.

This works differently from a bank account or a fixed-rate product. No regulated institution holds your funds, and your return depends on the protocol's rules, not on a fixed promise from Bitso. Your USDC sits in a smart contract, not in Bitso's custody, so Bitso doesn't hold your money while it's in Boxes.

What is Morpho?

Morpho is the lending protocol that powers Boxes. It's an open protocol that connects people who lend crypto with people who borrow it, using smart contracts to automate the rules of that relationship. Bitso doesn't operate or control the Morpho protocol.

What is the Morpho Vault?

The Morpho Vault is the lending pool inside the Morpho protocol that holds your USDC. The vault Bitso uses is curated by Gauntlet, a company specialized in protocol risk management. Gauntlet decides how the pooled funds are allocated and sets the vault's risk limits. Bitso doesn't set or control these parameters.