According to Morpho, onchain credit has grown to roughly $60B versus offchain credit markets estimated to be $200T. Closing that gap requires more than scaling what already exists with pooled liquidity models in DeFi. It requires a new market structure being ushered in by the launch of Morpho Midnight.
For years, Morpho has cemented its reputation as one of our most important pieces of DeFi infrastructure. During this bear market, there’s been no shortage of massive updates from the team.
Just a month ago, Morpho launched an integration with Robinhood. Robinhood integrated Morpho to power Robinhood Earn, a new in-app yield product allowing users to lend USDG through a self-custody wallet inside the main Robinhood app to earn an estimated 7% net APY.
The reason partners like Coinbase and Robinhood trust Morpho is credible neutrality, meaning Morpho doesn't compete with its own integrators, or pick winners. It is the protocol anyone can build on because it’s configurable but also immutable.
Since Morpho Blue launched in January 2024, Morpho Midnight is arguably their biggest product release. Variable rate lending made sense when Ethereum was congested and expensive to transact on, with more passive market participants, but nowadays institutions and enterprises coming onchain demand predictability in what a position will return or cost, and for how long.
Midnight gives them that: fixed rate, fixed term, intent-based lending where both sides of the market control their rate, risk, and maturity. The same USDC can be offered via multi-market offers, to thousands of markets simultaneously without fragmenting liquidity so capital can continue earning on Morpho Blue's variable rate markets while waiting to be matched on Midnight.
At launch, Midnight supports one network (Base), one pair (cbBTC/USDC), and a limited set of maturities here for end of July, August, and September.
Watch the latest Edge Podcast for Paul Frambot's full breakdown including a live screenshare of Morpho Midnight!
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► Morpho website: morpho.org
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