How to Evaluate a Curator?
Original Article Title: Curators Explained
Original Author: @MerlinEgalite
Translation: Peggy, BlockBeats
Editor's Note: As DeFi shifts from a high-yield-driven model to institutional and infrastructure competition, Morpho is attempting to reshape on-chain lending organization through its Vault and Curator mechanism. This article, from a platform perspective, introduces the role and non-custodial, programmatic operational logic of the Curator.
The following is the original article:
What Is a Curator?
A Curator is an independent team or entity, not part of the official Morpho team, responsible for designing, deploying, and managing on-chain Vaults.
At a high level, the Curator's job is to: package a diversified investment portfolio into user-friendly, easy-to-integrate Vault products.
Specific to Morpho Vaults, these Vaults are essentially investment portfolios made up of a set of overcollateralized lending positions. This structure enables users to: deposit in one place; earn yield with one click; and delegate ongoing risk management and portfolio construction work to the Curator.
In traditional finance, the role closest to a Vault Curator is an asset manager or fund manager. Both are responsible for strategy formulation and risk management, but there are significant differences in fundamental structure: the Vault Curator is non-custodial, with execution entirely automated through smart contracts, transparent throughout, and does not rely on human intermediaries.
In Morpho Vaults, a Curator can never take custody of or manage user funds. What they do is execute established strategies through programmatically configuring the Vault.
Users can freely deposit or withdraw funds at any time without needing anyone's approval, and there is no possibility of being artificially prevented; ownership and control of the assets always remain in the users' hands.
Curator's Business Model
A Curator can earn rewards through the following means: management fee; performance fee
The specific fee structure is determined by the Curator and can be configured for different Vaults, but must comply with the preset maximum fee rate.
Some Curators choose a lower fee rate; others rely on their own historical performance or differentiated strategies to charge higher fees. These decisions are entirely up to the Curator and are independent of Morpho.
In addition, Curators can also collaborate with distributors (such as fintech companies or platforms) to allocate fees generated by certain specific deposits between the Curator and the distributor through revenue sharing.
While the Curator's business model formally resembles a traditional asset manager, there is a key difference: the operating costs of the Vault are much lower than those of traditional funds or asset management platforms.
The Vault replaces the massive backend systems of traditional asset management with a few hundred lines of free, open-source code. The vast majority of processes are automated, everything runs in real-time on-chain, eliminating the need to wait for quarterly reports.
Therefore, Curators can often charge lower fees than traditional financial counterparts while maintaining a decent profit margin.
How to Evaluate a Curator (non-exhaustive list)
For corporate institutions, evaluating a Curator should not be unfamiliar. It is similar to evaluating traditional asset managers but with a significant advantage: full transparency.
The Vault is built on a public blockchain, and with various dashboard tools, you can instantly view detailed data on any Curator or Vault.
Here are some key evaluation dimensions:
Track Record
What are the work experiences in the DeFi field (and in related situations in the traditional financial field)?
Have collaborations been made with well-known enterprises, fintech companies, or institutions?
How has its strategy performed in different market cycles, especially in stress test phases?
What is the current total scale of funds managed in all Vaults?
While fund size itself cannot guarantee quality, it is often a useful signal of market trust and product fit.
Transparency & Methodology
Has the asset allocation method and risk control standards been clearly articulated?
Has an internal risk rating system been established?
Has the response process in market tightening or extreme events been disclosed?
How are the roles and permissions of each Vault delineated?
Is strict Operational Security (OpSec) practiced?
Is any form of insurance or risk mitigation mechanism provided?
Communications
Prior to depositing funds, attention should be paid to the Curator's public channels, such as X (Twitter) and the official website.
Is proactive communication maintained during high-yield periods and market turbulence?
Are regular updates provided on the Vault's performance, asset allocation changes, and risk events?
Conflicts of Interest
Have real or potential conflicts of interest been clearly disclosed?
Are there financial or governance relationships with certain protocols, investors, or counterparties that could influence allocation decisions?
Similar to traditional finance, responsible institutions should clearly explain the sources of conflicts and how they are managed.
Through the assessment of the above dimensions, institutions can choose a Curator that aligns with their needs in terms of strategy style, risk preference, and disclosure standards, while relying on the strong and tamper-proof systemic security provided by Morpho's underlying infrastructure.
Note: The above list is not exhaustive. Some content is relevant to Morpho Vaults and their Curators but may not necessarily apply to other platforms or Vault systems.
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The X Chat will be available for download on the App Store this Friday. The media has already covered the feature list, including self-destructing messages, screenshot prevention, 481-person group chats, Grok integration, and registration without a phone number, positioning it as the "Western WeChat." However, there are three questions that have hardly been addressed in any reports.
There is a sentence on X's official help page that is still hanging there: "If malicious insiders or X itself cause encrypted conversations to be exposed through legal processes, both the sender and receiver will be completely unaware."
No. The difference lies in where the keys are stored.
In Signal's end-to-end encryption, the keys never leave your device. X, the court, or any external party does not hold your keys. Signal's servers have nothing to decrypt your messages; even if they were subpoenaed, they could only provide registration timestamps and last connection times, as evidenced by past subpoena records.
X Chat uses the Juicebox protocol. This solution divides the key into three parts, each stored on three servers operated by X. When recovering the key with a PIN code, the system retrieves these three shards from X's servers and recombines them. No matter how complex the PIN code is, X is the actual custodian of the key, not the user.
This is the technical background of the "help page sentence": because the key is on X's servers, X has the ability to respond to legal processes without the user's knowledge. Signal does not have this capability, not because of policy, but because it simply does not have the key.
The following illustration compares the security mechanisms of Signal, WhatsApp, Telegram, and X Chat along six dimensions. X Chat is the only one of the four where the platform holds the key and the only one without Forward Secrecy.
The significance of Forward Secrecy is that even if a key is compromised at a certain point in time, historical messages cannot be decrypted because each message has a unique key. Signal's Double Ratchet protocol automatically updates the key after each message, a mechanism lacking in X Chat.
After analyzing the X Chat architecture in June 2025, Johns Hopkins University cryptology professor Matthew Green commented, "If we judge XChat as an end-to-end encryption scheme, this seems like a pretty game-over type of vulnerability." He later added, "I would not trust this any more than I trust current unencrypted DMs."
From a September 2025 TechCrunch report to being live in April 2026, this architecture saw no changes.
In a February 9, 2026 tweet, Musk pledged to undergo rigorous security tests of X Chat before its launch on X Chat and to open source all the code.
As of the April 17 launch date, no independent third-party audit has been completed, there is no official code repository on GitHub, the App Store's privacy label reveals X Chat collects five or more categories of data including location, contact info, and search history, directly contradicting the marketing claim of "No Ads, No Trackers."
Not continuous monitoring, but a clear access point.
For every message on X Chat, users can long-press and select "Ask Grok." When this button is clicked, the message is delivered to Grok in plaintext, transitioning from encrypted to unencrypted at this stage.
This design is not a vulnerability but a feature. However, X Chat's privacy policy does not state whether this plaintext data will be used for Grok's model training or if Grok will store this conversation content. By actively clicking "Ask Grok," users are voluntarily removing the encryption protection of that message.
There is also a structural issue: How quickly will this button shift from an "optional feature" to a "default habit"? The higher the quality of Grok's replies, the more frequently users will rely on it, leading to an increase in the proportion of messages flowing out of encryption protection. The actual encryption strength of X Chat, in the long run, depends not only on the design of the Juicebox protocol but also on the frequency of user clicks on "Ask Grok."
X Chat's initial release only supports iOS, with the Android version simply stating "coming soon" without a timeline.
In the global smartphone market, Android holds about 73%, while iOS holds about 27% (IDC/Statista, 2025). Of WhatsApp's 3.14 billion monthly active users, 73% are on Android (according to Demand Sage). In India, WhatsApp covers 854 million users, with over 95% Android penetration. In Brazil, there are 148 million users, with 81% on Android, and in Indonesia, there are 112 million users, with 87% on Android.
WhatsApp's dominance in the global communication market is built on Android. Signal, with a monthly active user base of around 85 million, also relies mainly on privacy-conscious users in Android-dominant countries.
X Chat circumvented this battlefield, with two possible interpretations. One is technical debt; X Chat is built with Rust, and achieving cross-platform support is not easy, so prioritizing iOS may be an engineering constraint. The other is a strategic choice; with iOS holding a market share of nearly 55% in the U.S., X's core user base being in the U.S., prioritizing iOS means focusing on their core user base rather than engaging in direct competition with Android-dominated emerging markets and WhatsApp.
These two interpretations are not mutually exclusive, leading to the same result: X Chat's debut saw it willingly forfeit 73% of the global smartphone user base.
This matter has been described by some: X Chat, along with X Money and Grok, forms a trifecta creating a closed-loop data system parallel to the existing infrastructure, similar in concept to the WeChat ecosystem. This assessment is not new, but with X Chat's launch, it's worth revisiting the schematic.
X Chat generates communication metadata, including information on who is talking to whom, for how long, and how frequently. This data flows into X's identity system. Part of the message content goes through the Ask Grok feature and enters Grok's processing chain. Financial transactions are handled by X Money: external public testing was completed in March, opening to the public in April, enabling fiat peer-to-peer transfers via Visa Direct. A senior Fireblocks executive confirmed plans for cryptocurrency payments to go live by the end of the year, holding money transmitter licenses in over 40 U.S. states currently.
Every WeChat feature operates within China's regulatory framework. Musk's system operates within Western regulatory frameworks, but he also serves as the head of the Department of Government Efficiency (DOGE). This is not a WeChat replica; it is a reenactment of the same logic under different political conditions.
The difference is that WeChat has never explicitly claimed to be "end-to-end encrypted" on its main interface, whereas X Chat does. "End-to-end encryption" in user perception means that no one, not even the platform, can see your messages. X Chat's architectural design does not meet this user expectation, but it uses this term.
X Chat consolidates the three data lines of "who this person is, who they are talking to, and where their money comes from and goes to" in one company's hands.
The help page sentence has never been just technical instructions.

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