Morpho has amassed $12 billion in assets, sparking curiosity about its over-collateralized loan model. The platform allows users to deposit $1 and receive $0.75, seemingly locking up more capital than they can withdraw. However, large players are leveraging Morpho to execute sophisticated, market-neutral strategies akin to traditional finance. These strategies involve creating diversified, leveraged portfolios that generate alpha by hedging beta risk. Morpho's vault curators function like fund-of-funds managers, aggregating and balancing these strategies. Users can apply iterative leverage to enhance returns, transforming stable, low-volatility yields into more attractive figures. This substantial asset accumulation underscores DeFi's increasing institutionalization.