DeFi Protocol Morpho Becomes First Layer-2 to Launch on Base
Morpho is a DeFi (decentralized finance) loan and credit platform built on the Ethereum blockchain that has made history in being the first layer-2 (L2) to escalate to Base. The year 2023 saw the launch of the new L2 scaling network–Base from Coinbase, dedicated to the Ethereum ecosystem. The effect of this move is to strengthen the DeFi value-added chain, using the Base platform to perfect Morpho’s offer.
Morpho’s Strategic Launch on Base
Morpho arose first in the Etherium blockchain then they indeed moved to Base to acquire the flourishing DeFi environment. In fact, Morpho’s development of their protocol allows users to borrow peer-to-peer where the addition of liquidity on the platform has been concentrated to crowdsourcing and it will drive in the new technology to have significant GDP growth with the help of the economic growth. This act of extension indicates a crucial transformation in the company’s user interface and functionality.
CEO’s Vision for the Future
Paul Framblet, the CEO of Morpho Labs, discussed the project in an article. At first, the CEO was wary of the second switch. Nonetheless, he approves that the change was the best option to grow. In a post on X (formerly Twitter) on Tuesday, Framblet stated:
“Today Morpho is launching on Base the very first L2 in the history of this project. I, for the last two years, have been an advocate of going narrow on deploying any other chain as I have wanted Morpho to keep it really narrow as the time we envisaged was the early versio“.
He added that the protocol’s Base platform would at this speed overcome the Ethereum version within the next year.
Brand New Features and Opportunities at Base
Morpho’s release of Base has brought a variety of functions that the community can benefit from. Among them are MetaMorpho Vaults, which help to bring the highest yield/lending. Deposit assets into a vault to make a profit. In the same breath, the user has the option to get a loan from Morpho Markets by collateralizing the deposit. For example, the cbETH/USDC market allows borrowing USDC stablecoins using cbETH as collateral.
Potential for Growth
Base growth as DeFi comes in and explains to the market. The entrance of more and more new users will equip an essential ground for the speed of Morpho’s development. According to DeFiLlama data, Morpho currently accounts for a total value locked (TVL) of $1.82 billion. In January, it was around $597 million and grew by 205% over the entire year.
It is expected that the integration with Base will bring more users and thus Morpho will become the leading DeFi protocol on this remarkable L2 scaling network.
