It will be the first L2 protocol to launch on Morpho Base.
Morpho is the first layer 2 protocol launched on Coinbase's Base. Morpho introduced MetaMorpho Vaults and Morpho Markets on Base, which enhance production and lending options. Morpho CEO Paul Frambotte has changed his stance on base deployment, seeing it as critical to Morpho's growth in DFI.
Morpho, a decentralized finance (DeFi) loan and lending protocol originally based on Ethereum, has achieved a milestone by becoming the first layer-2 (L2) protocol to launch on Base, the Ethereum scaling network introduced in 2023 by Coinbase.
This expansion is a critical moment for Morpho as it seeks to capitalize on the growing DeFi ecosystem and grow its service offerings. The move is set to redirect Morpho and place it on Base as a leading protocol.
Morpho to enter the Base' DeFi ecosystem with this expansion
Morpho's move to Base is a strategic decision aimed at tapping into the growing DeFi ecosystem.
While CEO Paul Frambotte was initially hesitant to expand to a second chain, he acknowledged that conditions had arisen, necessitating a new deployment.
This shift highlights the dynamic nature of the DeFi landscape and Morpho's adaptive strategy to stay ahead in a competitive market.
The introduction of Morphone Base brings a number of new features designed to improve user experience and optimize the use of capital.
One of its main features is MetaMorpho Vaults, which offers products optimized through indirect lending. Users can earn money by depositing their assets into these repositories, providing a robust means of generating revenue.
Additionally, Morpho Markets allows users to borrow against the amount of their deposit, while markets like cbETH/USDC allow users to borrow USDC stablecoin using cbETH as collateral. These features are set to attract a new wave of users to the platform, further fueling its growth.
The Morpho platform on Base is likely to outperform the Ethereum version.
Morpho Platform Base is likely to surpass its Ethereum version next year.
Broad base acceptance in the market is expected to drive user onboarding, which is critical to Morpho's expansion and success.
Currently, Morpho's Total Value Locked (TVL) is $1.833 billion, according to DiFilam data. This is a significant increase from approximately $597.76 million at the beginning of the year.
This impressive development trajectory adds to Morpho's strong performance and users' confidence in the protocol.
Launching on Morpho Base not only highlights Morpho's commitment to growth, but also the evolving nature of the DeFi space. As Base continues to see greater adoption, the collaboration between these platforms could lead to unprecedented growth and innovation in the DeFi sector.
Morpho's strategic expansion and introduction of user-centric features to harness the potential of the base network, paves the way for a new era in decentralized finance.
