- The first layer-2 to go live on Base, the L2 scaling network for Ethereum that Coinbase unveiled in 2023, is Morpho, a decentralized finance (DeFi) lending and borrowing protocol on Ethereum.
Although Morpho was first introduced on the Ethereum network, it is now active on Base in order to leverage the expanding DeFi ecosystem.
With the help of the Morpho protocol, customers can access a peer-to-peer liquidity platform and a higher capital usage rate.
The first L2 on Base is Morpho
In response to questions about the deployment on Base, Paul Frambot, CEO of Morpho Labs, stated that although he had previously been against the idea of growing onto a second chain, circumstances had changed.
Frambot stated that Morpho now has the potential to emerge as Base’s leading loan and borrowing protocol in a post on X on Tuesday.
The first-ever L2 launch on Base is taking place today with Morpho. I’ve been against deploying on any other chain for the last two years because I wanted Morpho to stay focused. We were unable to foresee a new deployment that would double Morpho’s TVL at the moment. However, circumstances have evolved.
In any case, according to the CEO of Morpho Labs, the protocol’s Base platform may outperform the Ethereum version in the upcoming year.
Make, borrow, and construct
The community can take advantage of a number of advantages that Morpho’s Base launch offers. One feature that offers optimum yields through passive lending is MetaMorpho Vaults. When users place assets in a vault, they receive rewards.
Additionally, users have access to loans through Morpho Markets upon depositing collateral. For example, the USDC stablecoin can be borrowed using cbETH as collateral in the cbETH/USDC market.
The market is using Base more widely, thus Morpho’s success will depend on whether the upcoming wave of users is onboarded.
Morpho’s current total value locked (TVL), according to DeFiLlama statistics, is $1.82 billion.
With the TVL at $597 million at the beginning of the year, the on-chain P2P layer appears to have experienced a TVL rise of around 205% so far this year.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
