Morpho Raises $18 Million

Published on: 14.07.2022

Morpho raises $18 million co-led by a16z and Variant to transform decentralized lending. The funding round has also participated with 80 additional investors, including advisors, founders, builders, and power users.

This is a huge step forward in taking decentralized lending to the next level. Morpho introduces a groundbreaking lending protocol that combines the current liquidity pool model used in Compound or AAVE with the capital efficiency of P2P matching engines used in order books.

Morpho-Compound improves Compound by providing the same user experience, the same liquidity, and the same liquidation parameters but with enhanced APY thanks to peer-to-peer matchings.

“Over the course of the past 3 years, decentralized lending protocols have shown incredible promise, as they have facilitated billions of dollars in loans and have been battle-tested in the face of extreme market conditions. However, despite their successes to date, these protocols still don’t offer the most competitive rates to users. This is a major unsolved problem. Morpho is a brand new type of lending primitive that directly matches suppliers and borrowers and sits directly on top of lending pools like Aave and Compound, unlocking rates that are competitive both on and off-chain. If successful, we believe it has the potential to become a go-to coordination layer of a new global and decentralized financial system.” — Spencer Noon, General Partner at Variant Fund

Morpho-Compound has been live for a few weeks and has already accumulated $30M of liquidity. You can start using Compound through the Morpho-Compound optimized gateway right now. Morpho-Aave will be launched in the coming weeks.

Optimal Lending For All

Morpho’s focus is to bring the most efficient, unbiased, and securities lending services to anyone who needs them. By improving the native yields, they believe Morpho can enhance the current state of DeFi and extend its reach to much broader horizons.

To continue to work in this direction, they must unite a community of committed contributors worldwide. That is why they founded the Association for the development of Morpho DAO. This is to pursue the development, adoption, and decentralization of Morpho. This shareholder-free entity holds the intellectual property of the protocol and the funds raised. It embodies the vision of building Morpho as a common good, developed by and for all.