Morpho: Vaults V2 enable in-kind redemptions

Morpho Vaults V2 now support in-kind redemptions, allowing users to redeem vault positions for the underlying market position even when the vault has no available liquidity. The capability is available across all Morpho Vaults V2 and operates independently of curator actions.

For depositors, the redemption path reduces the risk of being unable to exit because liquidity is unavailable at the vault level. Users receive an underlying market position rather than waiting for vault liquidity, so the mechanism changes the form of an exit without depending on a curator decision. Across Vaults V2, that broader access could make deposits more practical for users who weigh withdrawal flexibility, supporting adoption of Morpho’s vault product. The feature does not create available vault liquidity; it provides an alternative redemption route when that liquidity is absent.