PaperImperium(@ImperiumPaper):Overall, seems like a good concept. I do worry about the user being able to select what to redeem in-kind, though. It would be better to make it a pro rata share of the portfolio. You transform a liquidity problem into a kind of adverse selection problem. Seems complex to game out. As a lender, you’re getting some kind of embedded option under race conditions, so it’ll take people time to understand and price the value of that?

2026.08.31 17:07

Overall, seems like a good concept. I do worry about the user being able to select what to redeem in-kind, though. It would be better to make it a pro rata share of the portfolio. You transform a liquidity problem into a kind of adverse selection problem. Seems complex to game out. As a lender, you’re getting some kind of embedded option under race conditions, so it’ll take people time to understand and price the value of that?

Morpho 🦋@Morpho

2026.08.31 14:24

In-Kind Redemptions for Morpho Vaults Redeem vault positions for an underlying market position, even when the vault has no available liquidity. Exit any time, independent of curator actions.

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