TL;DR
- Morpho Launches on Base: Morpho, known for DeFi lending and borrowing, has launched Coinbase’s layer-2 solution, Base, aiming to expand its services and establish a strong presence in the DeFi ecosystem.
- Growth and Innovation: With a TVL of $1.833 billion, Morpho introduces new features like MetaMorpho Vaults for better lending returns and Morpho Markets for borrowing against deposits, indicating potential supremacy over its Ethereum operations.
- Base’s Expansion: Base has seen a remarkable growth trajectory, with its TVL reaching $8 billion, surpassing Optimism and positioning close to Arbitrum, highlighting Base’s rapid adoption and success in the Ethereum L2 space.
Morpho, a protocol renowned for its decentralized finance (DeFi) lending and borrowing services, has officially launched on Base, Coinbase’s layer-2 (L2) scaling solution for Ethereum. This pivotal move aims to harness the burgeoning DeFi ecosystem to bolster Morpho’s service offerings and establish it as a dominant protocol on Base.
The wait is officially over.
Morpho is now LIVE on @base.
Earn, borrow, and build on Morpho. pic.twitter.com/EtFbIxDQij
— Morpho Labs 🦋 (@MorphoLabs) June 18, 2024
Leveraging Coinbase Base for DeFi Growth
Morpho initially launched on Ethereum, but its move to Base showcases a calculated approach to capitalize on the booming DeFi industry. Paul Frambot, the CEO of Morpho, sees integrating with Base as a vital step towards expanding the protocol’s presence in the DeFi space.
Potential Supremacy Over Ethereum
Industry forecasts suggest that Morpho’s iteration on Base could outperform its Ethereum counterpart as early as next year. This optimism stems from an anticipated surge in Base blockchain adoption, potentially ushering in a broader user base.
Currently, Morpho boasts a total value locked (TVL) of $1.833 billion—a significant leap from approximately $597.76 million at the year’s start, according to DeFiLlama data.
Introducing New Functionalities
Morpho on Base goes beyond being a simple extension; it brings forth innovative elements like MetaMorpho Vaults, which enhance passive lending returns. By depositing assets into these vaults, users can generate yields in a highly efficient manner.
Moreover, Morpho Markets provides the opportunity to borrow against deposits in markets like cbETH/USDC. This allows users to utilize cbETH as collateral for obtaining stablecoin USDC loans, opening up new possibilities for leveraging their assets.
Base’s Remarkable Growth Trajectory
Meanwhile, Base itself has witnessed substantial growth since 2024 began, with its TVL soaring to $8 billion. This achievement propels Base’s past Optimism in the rankings of wealthiest Ethereum L2s, positioning it just behind Arbitrum.
Base’s TVL has multiplied over tenfold since January 1, 2024—impressive growth considering Arbitrum took nearly two years to reach its current TVL level.
Conclusion: A New Era for Morpho and DeFi
Morpho’s launch on Coinbase Base marks a new era for the protocol and the broader DeFi landscape. By leveraging Base’s scaling capabilities and innovative features, Morpho is poised to enhance user experiences and optimize capital utilization—ushering in a new phase of growth and opportunity in decentralized finance.
