Morpho

Integrate crypto-backed loans into your app using Gelato’s Gasless SDK and Morpho’s lending protocol. This guide walks you through setting up embedded wallet onboarding and implementing both the Supply/Earn and Borrow flows.

This guide assumes you’re using React + TypeScript.

Smart Wallet Onboarding Setup

Before users can supply or borrow assets, they must onboard into a Smart Wallet via a frictionless embedded flow. Powered by Gelato’s SDK and Dynamic, users can create smart accounts using just their email, social login, or passkeys — no browser extensions or seed phrases needed.

Key Features of Embedded Wallets

EIP-7702 & ERC-4337 compliant
Supports gasless transactions (sponsored execution)
Runs across 50+ EVM chains
Session-based login — no need to reconnect every time

Code Snippet

Embed the following setup within your app to configure the provider:

<GelatoSmartWalletContextProvider
  settings={{
    scw: {
      type: "gelato",
    },
    apiKey: process.env.NEXT_PUBLIC_GELATO_API_KEY as string,
    waas: dynamic(
      process.env.NEXT_PUBLIC_MORPHO_DYNAMIC_ENVIRONMENT_ID as string
    ),
    wagmi: wagmi({
      chains: [baseSepolia],
      transports: {
        [baseSepolia.id]: http(),
      },
    }),
  }}
>
  <QueryClientProvider client={queryClient}>
    <ActivityLogProvider>
      <RouteGuard>
        {children}
        <Toaster />
      </RouteGuard>
    </ActivityLogProvider>
  </QueryClientProvider>
</GelatoSmartWalletContextProvider>

This context enables smart wallet access throughout your app, setting up:

Wallet creation and session
Transaction preparation and sending
Provider availability across your components

const { gelato: { client }, logout} = useGelatoSmartWalletProviderContext();

Part 1: Supply & Earn

Allow users to supply assets (e.g., USDC) and earn yield in Morpho’s vaults — fully onchain, without user signatures or gas fees.

Flow Overview

Approve vault to spend USDC
Deposit USDC to Morpho vault
Optionally, record stats to external tracking contract

Code Snippet

const calls = [
  {
    to: USDC_ADDRESS,
    data: encodeFunctionData({
      abi: tokenABI,
      functionName: "approve",
      args: [MORPHO_VAULT_ADDRESS, parseUnits(amount, 6)],
    }),
  },
  {
    to: MORPHO_VAULT_ADDRESS,
    data: encodeFunctionData({
      abi: morphoVaultABI,
      functionName: "deposit",
      args: [parseUnits(amount, 6), smartWallet.address],
    }),
  },
  {
    to: VAULT_STATS_ADDRESS,
    data: encodeFunctionData({
      abi: vaultStatsABI,
      functionName: "deposit",
      args: [parseUnits(amount, 6), userAssets, totalAssets],
    }),
  },
];

const response = await smartWalletClient.execute({
  payment: sponsored(GELATO_API_KEY),
  calls,
});

console.log("userOp Hash", response.id);
const txHash = await response.wait();

Users never sign a transaction or pay gas. All logic executes onchain using their smart account.

Part 2: Borrow

Let users borrow stablecoins (like USDC) using crypto collateral (cbBTC) — trustless, non-custodial, and instant.

Flow Overview

Approve Morpho to move collateral
Supply collateral to Morpho
Borrow USDC

Code Snippet

const approveCall = {
  to: COLLATERAL_TOKEN_ADDRESS,
  data: encodeFunctionData({
    abi: tokenABI,
    functionName: "approve",
    args: [MORPHO_MARKET_ADDRESS, collateralAmount],
  }),
};

const supplyCollateralCall = {
  to: MORPHO_MARKET_ADDRESS,
  data: encodeFunctionData({
    abi: morphoABI,
    functionName: "supplyCollateral",
    args: [marketParams, collateralAmount, smartWallet.address, "0x"],
  }),
};

const borrowCall = {
  to: MORPHO_MARKET_ADDRESS,
  data: encodeFunctionData({
    abi: morphoABI,
    functionName: "borrow",
    args: [
      marketParams,
      borrowAmount,
      BigInt(0),
      smartWallet.address,
      smartWallet.address,
    ],
  }),
};

const response = await smartWalletClient.execute({
  payment: sponsored(GELATO_API_KEY),
  calls: [approveCall, supplyCollateralCall, borrowCall]
});

console.log("userOp Hash", response.id);
const txHash = await response.wait();

Summary

What You Can Build

Using these flows, your app can now offer:

Embedded lending dashboards
Crypto credit lines
Non-custodial stablecoin loans
Yield vault integrations
Composable DeFi automations

You get the power of Morpho and the abstraction of Gelato — without the overhead of building wallets, managing custody, or dealing with onchain UX friction.

Gelato Turbo Relayer

EVM Gasless Features

How-To Guides

Relayer API Endpoints

Additional Resources

Smart Wallet Onboarding Setup

Key Features of Embedded Wallets

Code Snippet

Part 1: Supply & Earn

Flow Overview

Code Snippet

Part 2: Borrow

Flow Overview

Code Snippet

Summary

What You Can Build

​Smart Wallet Onboarding Setup

​Key Features of Embedded Wallets

​Code Snippet

​Part 1: Supply & Earn

​Flow Overview

​Code Snippet

​Part 2: Borrow

​Flow Overview

​Code Snippet

​Summary

​What You Can Build

Smart Wallet Onboarding Setup

Key Features of Embedded Wallets

Code Snippet

Part 1: Supply & Earn

Flow Overview

Code Snippet

Part 2: Borrow

Flow Overview

Code Snippet

Summary

What You Can Build