Morpho, a permissionless cryptocurrency lending protocol, has unveiled its V2 update, designed to bring decentralized finance (DeFi) closer to the conventions of traditional lending. The new market provision brings in tailored and consistent loan terms. This capability is a must-have for any institution or enterprise looking to develop or port financial products on-chain. Morpho V2 provides a capital markets alternative – market-driven, fixed-rate, fixed-term loans with a great deal of flexibility in terms.
We’ll be releasing the full V2 update over the next several weeks, so stay tuned! DeFi is going to explode this year, especially with the arrival of institutional finance and real-world assets (RWAs).
A new additional feature Morpho V2 has is the ability to collateralize a single asset, multiple assets, or an entire portfolio. This is a big step forward from previous iterations, which did not permit loans to be secured by multiple types of collateral. Morpho V2 is much more open to new types of collateral such as real-world assets (RWAs) and niche assets. This improvement is meant to add more flexibility and cover a larger variety of financial instruments.
"With Morpho V2, we wanted to move beyond the rigid, pool-based structures that dominate DeFi today where users have little control over rates or terms." - Paul Frambot, Morpho Labs CEO
Morpho V2 takes this one step further and implements an open market where users determine whether or not a loan gets granted, rather than the protocol. In the $50 million round, led by Ribbit Capital, the company joined GoJek, QFpay and WeChat among the investment firm’s portfolio companies.
"This level of precision and flexibility is what’s needed to serve both sophisticated DeFi users and institutions looking for predictable, customizable loans on-chain." - Paul Frambot, Morpho Labs CEO
Paul Frambot helped CoinDesk receive an honourable mention in the 2020 SABEW Best in Business awards.
