Morpho, a permission -free cryptocurrency -loan protocol, revealed an update that seeks to further adjust decentralized financing (DEFI) with traditional lending by bringing more in the way of tailor -made, predictable loan terms.
Morpho V2 delivers the market-driven fixed-rate, fixed-term loans with customizable terms, features that are previously unseen in DEFI, which are required to meet the requirements of institutions and companies wishing to build or migrate financial products on chain, Morpho said in a press release on Thursday.
Defi, a blockchain-based and automated system for lending and borrowing on chain assets, is set to rise this year, just as it did by 2021, especially because of the involvement of institutional funding and assets in the real world (RWAs).
However, Defi Infrastructure has to surpass certain on-chain constraints, such as an dependence on over-collateralization and fixed formulas for calculating rates to scale to institutional quality potential.
“With Morpho V2, we wanted to move beyond the stiff, pool-based structures that dominate Defi today, where users have little control over prices or terms,” Morpho Labs CEO Paul Frambot said in an email. “V2 introduces an intention -based model where lenders and borrowers express exactly what they want, as a fixed -rate, fixed loan, specific security preferences, etc., and the system finds the best match.”
While the previous version of Morpho Limited Loan for Single Safety Types, V2 supports single assets, multiple assets or entire portfolios such as security, including RWAs and niche assets, according to a press release.
“This level of precision and flexibility is what is needed to serve both sophisticated defi users and institutions looking for predictable, customized loans on the chain,” Frambot said. “V2 unlocks the potential of lending to the chain by introducing an open market where users are the ones to decide whether to issue a loan, not the protocol.”
The upgrade also goes on with compliance, including improved know-your-customs (KYC) and whitening, but without changing the platform’s open source, permission-free and non-parenting authority, the release said.
The Morpho V2 will be rolled out in the coming weeks, said a representative of the company in an E email.
