✍️What Happens When You Deposit

1. You supply TitanX to the protocol

• Let’s say you deposit 10,000 $TitanX into the TitanX lending market.

• This makes you a liquidity provider, your funds are available for others to borrow.

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2. You receive a non-rebasing yield-bearing token: aTitanX

• The protocol mints you an ERC-20 token — e.g., aTitanX, which represents your position.

• This is not rebasing like Compound or Aave v2 — instead, the value of each aTitanX token increases over time as you earn yield.

Think of aTitanX as your claim on the pool. Its value in TitanX grows as interest accumulates.

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3. Your deposit starts earning yield

• Interest is paid by borrowers in the same market (those borrowing TitanX).

• That interest is split:

  • You (the lender) receive most of it.

  • A small performance fee is taken by the protocol and redirected to the AINC buy and burn mechanism and veAINC stakers.

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4. You can withdraw at any time

• As long as there’s liquidity, you can redeem your aTitanX for your original TitanX + earned interest.

• If utilization is high, withdrawals may be temporarily limited — a feature of all lending protocols.

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Key Features of Morpho’s Design

Feature	Description
Non-rebasing tokens	You receive aToken ERC-20s (like aTitanX) that accrue value
Peer-to-Peer matching	Morpho automatically optimizes your rate by matching you with borrowers directly
Efficient capital	Even unused capital can earn interest via the fallback pool mechanism
Real yield	Yield comes from borrower interest
Composable aTokens	You can use aTitanX in other protocols, just like any ERC-20

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TL;DR

• You deposit TitanX.

• You get aTitanX, a yield-bearing token that appreciates in value.

• You earn interest from borrowers.

• Protocol takes a small fee → split to buy AINC and reward veAINC stakers.

• You can withdraw any time (as long as there’s liquidity).