The Morpho Effect: February 2025

A digest of the latest news in the Morpho Ecosystem

TLDR:

🔹 The refreshed Morpho App: easier to use, more resilient, and soon to host a range of new features

🔹 Released Pre-liquidation contract that enables enhanced loan management tools

🔹 Morpho multichain expansion continues (Batch 2 includes Unichain, Sonic, Corn, Mode and Hemi)

🔹 Morpho is now the largest lending protocol on Base by TVL and active loans

🔹 Ecosystem updates from Moonwell, Farcaster, Seamless and more

Highlights of the Month

Refreshed Morpho App

Under the hood, architecture improvements of the new Morpho App allows new features to ship at a much faster pace.

Additionally, Rewards are now available for claim every Monday, with a fully automated backend.

Introducing Pre-Liquidations

Pre-Liquidation allows anyone to build borrower-friendly liquidation mechanisms that borrowers can opt-into.

Pre-Liquidations extend what's possible on Morpho, giving integrators the tools to build user-friendly loan management features directly into their apps.

For a deeper dive, check out the full announcement here.

Morpho Everywhere Batch 2

Morpho contracts are now deployed on Unichain, Mode, Corn, Hemi and Sonic, extending Morpho non-core support to 12 EVM chains.

Although these deployments are infrastructure-only, independent contributors such as Moonwell, GFX Labs and Paperclip Labs are pursuing grants independently to deploy front-ends of Morpho on these chains.

Onchain Kit Earn Enables Apps to Integrate Morpho Vaults in Minutes

Onchain Kit from Base announced Earn, enabling app developers to integrate any Morpho Vault via pre-made code snippets.

Integrating Morpho Vaults can now be done in minutes, bringing the benefit of onchain yield to millions via viral apps built on Base.

Morpho Metrics

Despite unfavorable market conditions, Morpho has cemented its position as the largest lending protocol on Base by TVL, and active loans.

Morpho remains the second largest lending protocol on Ethereum.

Morpho is the leading lending protocol on Base. Source: defilama
Morpho is the leading lending protocol on Base. Source: defilama

Sticky USDC Supply

USDC Supply across Ethereum and Base have stabilized over the past month with overall volume topping over 1 billion.

cbBTC/USDC Market Continues to Grow

The cbBTC/USDC market on Based Morpho grew by 50M benefiting from the increasing demand coming from Coinbase cbBTC-backed loans.

Curators Fees

Cumulated Morpho Vault fees for curators are now over $3M

Total vault fees generated on Base for curators are now over $250K

Ecosystem Highlights

  1. Moonwell announced Virtual Accounts, converting fiat payments to USDC and generating yield in its Flagship USDC Vault built on Morpho

  2. Unofficial Morpho Farcaster frame by Samuellhuber.eth enables users to deposit and withdraw from Morpho Vaults directly in Farcaster feeds

  3. Deployed less than 2 months ago on Based Morpho, Seamless vaults have reached $50M+ in deposits

  4. Coinbase One is now part of the Morpho Ecosystem

Open Roles at Morpho Labs

  1. Senior Web3 Engineer - Frontend

  2. Senior Developer Relations Engineer

Learn more at morpho.org/jobs.

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