Morpho initially launched on the Ethereum blockchain, but has now gone live on Base in order to tap into a growing DeFi ecosystem. The protocol offers a peer-to-peer platform for liquidity, enabling users to access a more robust capital utilization rate.
The CEO of Morpho Labs expressed excitement about the platform’s potential growth on Base, stating that it could potentially outpace the Ethereum version within the next year. Base platform includes MetaMorpho Vaults, a feature that optimizes yields through passive lending, allowing users to earn when they deposit assets into a vault.
Additionally, users can borrow from Morpho Markets by depositing collateral, such as the cbETH/USDC market which enables users to borrow the USDC stablecoin with cbETH as collateral. The potential onboarding of the next wave of users through Base will be crucial to Morpho’s growth, as it has seen a substantial increase in total value locked (TVL) year-to-date.
At the start of the year, the TVL stood at approximately $597 million, representing a nearly 205% growth in the on-chain P2P layer.