Morpho DeFi protocol makes history as first L2 to debut on Base
Morpho, a decentralized finance (DeFi) lending and borrowing protocol built on Ethereum, has made history by being the first protocol to launch on Base, an L2 scaling network for Ethereum introduced by Coinbase in 2023.
Originally established on the Ethereum blockchain, Morpho’s expansion to Base allows it to tap into the flourishing DeFi ecosystem. This protocol provides a peer-to-peer platform for liquidity, offering users access to a more efficient capital utilization rate.
Paul Frambot, the CEO of Morpho Labs, expressed his initial reservations about expanding to a second chain but acknowledged the changing landscape. In a recent announcement, Frambot shared his excitement about Morpho potentially becoming the leading lending and borrowing protocol on Base.
With the launch on Base, Morpho introduces various features for the community to explore and benefit from. One of these features is MetaMorpho Vaults, which enables users to earn optimized yields through passive lending by depositing assets into a vault.
Additionally, users can borrow from Morpho Markets by depositing collateral, such as the cbETH/USDC market that allows borrowing the USDC stablecoin with cbETH as collateral. As Base gains more traction in the market, attracting new users will be essential for Morpho’s continued growth.
According to DeFiLlama data, Morpho currently boasts a total value locked (TVL) of $1.82 billion, a significant increase from the TVL of approximately $597 million at the beginning of the year. This growth indicates a remarkable 205% increase in the on-chain P2P layer’s TVL year-to-date.
