Morpho V2 is the New Standard.
Time to Migrate.
Morpho V2 vaults bring stronger governance, broader strategy support, and MORPHO incentive rewards. We advise all V1 users to migrate, and the Steakhouse App makes it one transaction.
Check which of your V1 positions can be upgraded at app.steakhouse.financial/earn?protocol=morpho_v1
Morpho launched Vaults V2 in late 2025, rebuilding the vault architecture from the previous version: new role separation, timelocked governance, immutable contracts, and a flexible adapter system that opens the door to strategies V1 could never support. Since then, Steakhouse has been adopting this infrastructure, deploying equivalent vaults, and building new products on the upgraded architecture, including Box Vaults for Term and Turbo strategies.
That migration is now reaching the point where staying on V1 means missing out. Morpho’s frontend defaults to V2, and V1 vaults are no longer visible in the standard directory. If you still hold V1 positions, they remain accessible from your wallet dashboard, but you are missing the MORPHO incentive rewards directed exclusively at V2 depositors.
We advise all users with Steakhouse V1 positions to upgrade through the Steakhouse App. The migration tool handles it simply, directly from your V1 position management dashboard.
What Changed with V2
Morpho Vault V2 is a structural upgrade to the vault architecture. The table below summarises what V2 introduces and what it replaces.
For Steakhouse users, three of these deserve particular attention.
The adapter architecture is what powers Term and Turbo strategies. V1 could only route capital to Morpho Blue lending markets. V2’s adapter system allowed Steakhouse to build the Box Vaults with whitelisted actions and slippage constraints at the contract level.
Timelocked governance means the vault cannot silently change its risk profile. Any risk-increasing change (adding a new adapter, raising a cap, modifying fee parameters) must be submitted and wait through a defined delay before it executes. During that window, every depositor can inspect the pending change and withdraw if they disagree. The Sentinel role adds a second layer: an independent actor that can veto pending changes and force-deallocate positions in an emergency, but can only take risk-reducing actions.
Abdication lets curators harden trust assumptions permanently. A vault that abdicates the ability to set access gates guarantees permissionless deposits and withdrawals forever. A vault that abdicates adapter addition guarantees its strategy scope will never expand beyond what is currently enabled. These are commitments enforced by code, verifiable onchain by any observer.
MORPHO Incentive Rewards
In December 2025, Morpho DAO approved MIP 124, a V2-specific incentive campaign that increased the MORPHO rewards budget by 14% to accelerate migration. V1 vaults do not receive these additional rewards.
MORPHO token rewards are distributed through Merkl to V2 depositors and contribute to overall APY alongside base lending yields. Rewards update every eight hours, and V2 vaults that allocate into underlying Morpho Blue markets automatically detect and forward market-level rewards to depositors.
The practical effect is visible in the migration tool. As an example from a recent snapshot: a V1 position in USDC Prime Instant showing 2.14% APY maps to a V2 equivalent at 2.4% APY once incentive rewards are included. The spread varies with market conditions, but V2 eligibility for MORPHO rewards is a structural advantage that persists across vaults and chains.
How to Migrate
The Steakhouse App provides a one-step conversion path. The process takes a single transaction.
Open the Steakhouse App and connect your wallet.
On the Earn page, vaults where you hold a V1 position will appear with an “Upgrade” indicator.
Select the vault and click “Upgrade” to review the migration: a side-by-side comparison of your current V1 position and the V2 equivalent, including updated APY with incentive rewards.
Confirm and sign. Your position migrates to the V2 vault in the same asset. Your funds remain under your control throughout. The interface confirms: “Non-custodial upgrade: Your funds remain under your control.”
The app supports migration on Ethereum, Base, and Arbitrum. For V1 positions on other chains, use the Morpho App directly. Some V1 vaults do not have a V2 equivalent and will continue operating as V1; these will not display an upgrade indicator.
What Happens to V1
V1 vaults are not deprecated. The smart contracts remain functional and withdrawals will always be available under Morpho’s noncustodial rules, regardless of any frontend or curator decisions.
We will close new deposits on V1 vaults that have a V2 equivalent. Fragmented liquidity across two versions of the same strategy reduces capital efficiency for all depositors. Consolidating on V2 concentrates liquidity where the infrastructure, governance, and incentive rewards are strongest.
Users who choose to remain in V1 retain full withdrawal access. They will, however, miss V2-specific MORPHO rewards and will be in vaults no longer receiving new deposits, which may affect utilisation rates and lending yields over time.
Before You Migrate
V2 vaults carry the same underlying strategy risks as their V1 equivalents: collateral risk, liquidation risk, interest rate volatility, and protocol-level risk. V2’s governance infrastructure (timelocks, role separation, abdication) mitigates operational risk but does not eliminate market risk. Review each vault’s allocation, risk rating, and parameters in the app before confirming.
Explore the Steakhouse App at app.steakhouse.financial.
Disclaimer: Stablecoin and crypto lending strategies involve smart contract risk, liquidation risk, collateral risk, and market risk. Past performance and current APY do not guarantee future results. MORPHO incentive rewards are subject to Morpho DAO governance and may be modified. Review vault parameters and risk documentation before deploying capital.