IOracle

IOracle

IOracle is the standard interface a Morpho Blue market uses to get the price of its collateral asset relative to its loan asset. It's an interface, a defined contract shape, rather than a specific oracle: any oracle that implements the IOracle interface can be plugged into a market, which is what lets each market choose the price source appropriate to its assets.

This matters because different assets need different pricing. A market with liquid crypto collateral might use a hardened, multi-source market-price oracle. A market with illiquid real-world collateral needs a NAV-based valuation oracle instead. Because Morpho Blue markets specify their oracle at creation through the common IOracle interface, both can exist on the same protocol without the base contract needing to know or care how any particular oracle arrives at its number, it just needs the answer in the expected form.

The IOracle abstraction is part of what makes Morpho Blue extensible to real-world assets. The protocol doesn't hardcode a single pricing method; it defines the interface and lets each market supply an oracle suited to what it actually holds.

Related: Price oracles for institutional lending and NAV oracles: how illiquid RWA collateral gets priced on-chain.