DeFi protocol Morpho has become the first layer-2 to launch on Base, an Ethereum scaling network introduced by Coinbase in 2023. This marks a significant milestone as Morpho initially launched on Ethereum but is now expanding to tap into Base’s growing DeFi ecosystem.
Morpho offers a peer-to-peer platform for liquidity, enhancing capital utilization rates. CEO Paul Frambot noted that the protocol now has the potential to become the top lending and borrowing platform on Base, despite his initial reluctance to expand beyond Ethereum.
The launch on Base introduces features like MetaMorpho Vaults, which provide optimized yields through passive lending. Users can earn by depositing assets into a vault or borrow by using collateral. For instance, the cbETH/USDC market allows borrowing USDC with cbETH as collateral.
According to DeFiLlama, Morpho’s total value locked (TVL) has surged by nearly 205% year-to-date, reaching $1.82 billion from $597 million at the start of the year. This strategic move could see Morpho’s Base platform outpace its Ethereum version within a year, underscoring its long-term growth potential.
