https://github.com/morpho-org/privy-morpho-recipe
Privy - Morpho Recipies
https://github.com/morpho-org/privy-morpho-recipe
Last synced: about 1 month ago
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Privy - Morpho Recipies
- Host: GitHub
- URL: https://github.com/morpho-org/privy-morpho-recipe
- Owner: morpho-org
- License: mit
- Created: 2026-04-03T07:48:55.000Z (4 months ago)
- Default Branch: main
- Last Pushed: 2026-05-20T08:19:08.000Z (2 months ago)
- Last Synced: 2026-05-20T11:59:28.036Z (2 months ago)
- Language: TypeScript
- Size: 1.91 MB
- Stars: 0
- Watchers: 0
- Forks: 0
- Open Issues: 1
-
Metadata Files:
- Readme: README.md
- License: LICENSE
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README
# Privy x Morpho: DeFi Lending Recipe
A developer recipe for building **Earn** and **Borrow** products using [Privy](https://privy.io) embedded wallets and [Morpho](https://morpho.org) lending markets. Clone, configure, ship.
## Disclaimer
This is an **educational demonstration** showcasing integration patterns between Privy and Morpho. It is functional but intended for learning purposes. **Do not use in production without security audits, testing, and risk assessment.**
- Always exercise caution when interacting with real smart contracts and funds
- Always use minimal amounts
- Never Hardcode any private keys
- Consider professional security audits for production applications
## Overview
This recipe demonstrates how to build a **one-click DeFi lending application** combining:
- **[Privy](https://privy.io)** — Embedded wallet infrastructure for seamless user onboarding
- **[Morpho](https://morpho.org)** — Hyper-efficient lending markets and vault yield optimization
- **Multi-chain discovery** — Browse Morpho deployments on Ethereum, Base, Arbitrum, Polygon, Optimism, and more, with SDK-backed transaction execution currently enabled on Base
### Earn Product
Browse and deposit into Morpho vaults across chains. Real-time APY, TVL, and position tracking with value transitions on deposit/withdraw.
### Borrow Product
Browse top 50 markets, supply collateral, borrow assets. Full position simulation with LTV, health factor, liquidation price, and review step before execution.
### Key Features
- Privy wallet authentication (social login, email, or external wallet)
- Multi-vault and multi-market discovery via Morpho's GraphQL API
- Transaction building via `@morpho-org/morpho-sdk` for vault deposits/withdrawals and market borrow/repay flows
- Real-time position simulation with before/after projections
- Input validation with clear disabled reasons
- Review step before wallet execution
- Responsive split-view UI (table + action panel)
## Prerequisites
- **Node.js 20+** and **pnpm**
- **Privy App ID** from the [Privy Dashboard](https://dashboard.privy.io)
- **Basic DeFi knowledge** (ERC-20 tokens, lending markets, vaults)
## Getting Started
```bash
git clone https://github.com/morpho-org/privy-morpho-recipe.git
cd privy-morpho-recipe
pnpm install
```
Create `.env.local`:
```bash
NEXT_PUBLIC_PRIVY_APP_ID=your_privy_app_id
```
Run the development server:
```bash
pnpm dev
```
## Architecture
### Core Components
| Component | Purpose |
|-----------|---------|
| `MarketOperationsModal` | Borrow/repay panel with simulation, validation, and review step |
| `VaultOperationsModal` | Deposit/withdraw panel with value transitions and review step |
| `MarketTable` | Top 50 markets by size with rate, utilization, and liquidity |
| `VaultTable` | Top 20 vaults by TVL with APY breakdown and curator info |
| `SimulationSummary` | Before/after position projections (collateral, debt, LTV, HF) |
| `ReviewStep` | Inline transaction review before wallet execution |
### Hooks
| Hook | Purpose |
|------|---------|
| `useMarketPosition` | Borrow position state, simulation, validation, transaction handlers |
| `useVaultPosition` | Vault deposit/withdraw state, slippage detection, safety checks |
| `useMarkets` / `useVaults` | GraphQL data fetching and market/vault selection |
| `useSmartAccount` | Privy wallet integration for transaction signing |
| `useTxLifecycle` | Transaction state machine (processing, success, error) |
### Data Flow
```
Morpho GraphQL API → Apollo Client → useMarkets/useVaults hooks
↓
User selects market/vault → useMarketPosition/useVaultPosition hooks
↓
On-chain reads (viem + Morpho SDK) → Position, oracle price, market data
↓
Simulation engine → Projected LTV, HF, liquidation price
↓
Validation engine → CTA state, disabled reasons
↓
Morpho SDK action → requirements, signatures/approvals, built transaction
↓
Review step → Wallet execution via Privy wallet client
```
### Libraries
| Library | Purpose |
|---------|---------|
| `@privy-io/react-auth` | Wallet authentication and embedded wallets |
| `@morpho-org/morpho-sdk` | Recommended Morpho SDK for building VaultV2 and MarketV1 transactions, resolving approvals, Permit/Permit2 signatures, and Morpho authorizations |
| `@morpho-org/blue-sdk` | Morpho market params and offchain entity types used by the SDK flow |
| `@morpho-org/blue-sdk-viem` | Morpho contract ABIs and viem-compatible helpers |
| `@apollo/client` | GraphQL data fetching from Morpho API |
| `wagmi` + `viem` | Blockchain interactions and contract calls |
| `framer-motion` | UI animations |
## Extending This Recipe
### Adding a New Chain
The app already supports multiple chains for market and vault discovery. Current SDK-backed transaction execution is enabled on Base.
To add a new Morpho deployment:
1. Add the chain to `CHAIN_ID_MAP` in `src/context/ChainContext.tsx`
2. Add the chain config to `wagmiConfig` in `src/app/providers.tsx`
3. The GraphQL API will automatically include markets/vaults on the new chain
4. Enable the transaction handlers for that chain after validating Morpho SDK support, RPC configuration, and wallet signing behavior
### Optional Features (Not Yet Implemented)
- **Gas Sponsorship** — Privy paymaster integration for gasless transactions
- **Health Monitoring** — Server-side position monitoring with Privy server wallets
- **Batch** - Using smart wallet and batching transactions
## Security Considerations
- Morpho vaults and markets are subject to smart contract risks
- ERC-20 approvals are scoped to the specific transaction amount
- Input validation prevents unsafe positions (LTV checks, balance checks)
- Health factor simulation warns before liquidation-risk actions
- Always test with small amounts first
## Resources
- [Privy Documentation](https://docs.privy.io)
- [Morpho Documentation](https://docs.morpho.org)
- [Morpho SDK Documentation](https://docs.morpho.org/tools/offchain/sdks/morpho-sdk/)
- [Morpho SDK Source](https://github.com/morpho-org/sdks/tree/main/packages/morpho-sdk)
- [Morpho GraphQL API](https://blue-api.morpho.org/graphql)
- [Morpho App](https://app.morpho.org)
## License
MIT License — see [LICENSE](LICENSE) for details.
---
Built to demonstrate the power of Privy x Morpho integration.