Morpho V2 Introduces Fixed-Rate Loans in DeFi, Bridging Gap with Traditional Finance
Morpho, a decentralized lending protocol, has launched its V2 upgrade, introducing fixed-rate, fixed-term loans with customizable terms—a first for DeFi. The update targets institutional adoption by addressing key limitations like over-collateralization and rigid rate formulas.
"We''re moving beyond pool-based structures where users lack control," said Morpho Labs CEO Paul Frambot. The new intent-based model allows lenders and borrowers to specify terms, collateral preferences, and receive optimized matches.
The upgrade coincides with growing institutional interest in real-world asset tokenization. DeFi''s 2024 resurgence mirrors 2021''s bull run, but scalability demands infrastructure that meets traditional finance standards.