Morpho, a decentralized finance (DeFi) lending and borrowing protocol built on Ethereum, has made history by becoming the first protocol to launch on Base, an L2 scaling network for Ethereum introduced by Coinbase in 2023.
Although Morpho originally started on the Ethereum blockchain, its expansion to Base aims to take advantage of the growing DeFi ecosystem. This protocol provides users with a peer-to-peer platform for liquidity, allowing them to access a more efficient capital utilization rate.
Paul Frambot, the CEO of Morpho Labs, shared his thoughts on the decision to deploy on Base, stating that his perspective has evolved over time. Initially reluctant to move to a second chain, Frambot now believes that Morpho has the potential to become the leading lending and borrowing protocol on Base.
The launch on Base introduces new features for the community to explore, including MetaMorpho Vaults, which offer optimized yields through passive lending. Users can earn rewards by depositing assets into these vaults, while also having the option to borrow from Morpho Markets by providing collateral. For example, the cbETH/USDC market allows users to borrow USDC stablecoin using cbETH as collateral.
As Base gains traction in the market, attracting new users will be crucial for Morpho’s growth. Currently, data from DeFiLlama shows that Morpho has a total value locked (TVL) of $1.82 billion, a significant increase from the $597 million TVL at the beginning of the year. This growth indicates a 205% increase in on-chain P2P activity year-to-date, highlighting the protocol’s expanding presence in the DeFi space.