Recently, many people have misinterpreted Morpho's modular lending mechanism, which is certainly partly due to the influence of traditional players (like Aave), as DeFi is a complex and often contentious field. However, the more significant issue is a lack of understanding of its mechanics. Modular lending, as represented by Morpho, is not simply permissionless lending or isolated pools. Permissionless lending gives the impression of being haphazard and unregulated, while isolated pools seem to imply lower capital efficiency compared to traditional pool models.