Bitwise and Morpho Launch Non-Custodial On-Chain Vaults for Yield Generation
- Bitwise has partnered with Morpho to create non-custodial on-chain vaults targeting a yield of 6%.
- The vaults will utilize overcollateralized lending pools, managed by Bitwise’s portfolio manager Jonathan Man.
- Bitwise predicts that on-chain vaults, referred to as “ETFs 2.0,” will double in assets under management by the year-end of 2026.
- Users can deposit or withdraw funds anytime, unlike traditional staking protocols where funds may be locked.
- Morpho currently ranks as the seventh-largest DeFi platform with a total value locked (TVL) of $6.7 billion.
This collaboration marks a significant advancement in decentralized finance, providing investors with transparent methods to earn yields on their digital assets through innovative vault strategies.
With a projected doubling of AUM by 2026, Bitwise’s initiative reflects the growing trend towards automated financial solutions in the DeFi space.