This documentation focuses on the implementation of the Morpho protocol and how to get started with integrations. To familiarize yourself with the protocol, you can begin by reading docs.morpho.xyz.
Morpho is a peer-to-peer layer built on top of lending pools such as Compound (and soon Aave). Rates are seamlessly improved for both suppliers and borrowers while preserving the same liquidity and liquidation guarantees.
Morpho is a lending pool optimizer, it improves the capital efficiency of positions on lending pools by seamlessly matching lenders and borrowers peer-to-peer. As such, Morpho enhances your rates while preserving the same user experience, the same liquidity and the same parameters as the underlying protocol.
This means that one interacts with Morpho-Compound the same way one would use Compound, with the same billions of dollars available to be borrowed/withdrawn and the same collateral factors, oracles, close factors... The only difference for a user is that Morpho provides improved rates for both borrowers and lenders.
Indeed, using Morpho, you either receive, in the worst-case scenario, the APY of the underlying pool, or an improved APY thanks to peer-to-peer matching. This improved APY is called the P2P APY.
In short, Morpho is the optimized gateway to decentralized lending. Instead of borrowing or lending directly from your favorite lending pool such as Compound, you would be better off using Morpho-Compound.