Morpho, a prominent decentralized finance (DeFi) lending and borrowing protocol initially built on Ethereum, has launched on Base, Coinbase’s Layer-2 (L2) scaling network for Ethereum as its first L2 protocol to go live on Base.
The decision to deploy on Base comes after two years of maintaining a narrow focus on the Ethereum mainnet. CEO Paul Frambot previously opposed expanding to another chain but now sees the potential for Base to surpass Ethereum in terms of Total Value Locked (TVL) and user adoption.
Aspects that would help create the expected growth in Morpho include low fees due to the OP Stack, easy-to-use tools like the AA Kit, distribution, and brand support from Coinbase.
Morpho’s launch on Base introduces MetaMorpho Vaults, which optimize yields through passive lending where users can earn returns by depositing assets into these vaults. Additionally, Morpho Markets allows users to borrow against collateral. For example, the cbETH/USDC market enables borrowing USDC with cbETH as collateral.
Morpho aims to leverage this ecosystem to boost growth with Base’s infrastructure. As Base gains adoption, Morpho’s presence on this L2 network is expected to increase its TVL and user engagement.
The base is an Ethereum Layer 2 chain built on the OP Stack in collaboration with Optimism aims to offer a secure, low-cost, and developer-friendly platform for building decentralized applications. Backed by Coinbase, Base integrates seamlessly with its products, offering easy fiat onramps and access to Coinbase’s user base.
Morpho is poised to become a leading lending and borrowing protocol on this new L2 network. The deployment falls into the mainstream because DeFi protocols are looking for scalable and efficient platforms to improve their functionality and coverage.
Also Read: Coinbase Base Crosses $8B TVL Surpasses Optimism OP Mainnet
